Understanding the General Accounting Plan and Financial Statements
The General Accounting Plan
The General Accounting Plan is mandatory for all companies that must keep records in any legal or corporate form. The conceptual framework consists of the fundamentals, principles, and basic concepts that inspire the entire plan.
Components of the Conceptual Framework
It is possible to distinguish seven parts within the conceptual framework:
- Annual accounts
- Information requirements for annual accounts
- Social principles
- Elements of the annual accounts
- Registration or recognition criteria
- Accounting standards generally accepted
Annual Accounts for SMEs
The annual accounts for SMEs include:
- Balance sheet
- Profit and loss account
- Statement of changes in equity
- Memoria (Notes to the financial statements)
These financial statements report...