BIBLIOGRAFIA

http://bdigital.unal.edu.co/9259/1/7708506.2012.pdf

https://clickbalance.com/blog/contabilidad-y-administracion/limitaciones-de-los-estados-financieros/

https://www.bloghispanodenegocios.com/limitaciones-estados-financieros/#Limitaciones_en_el_uso_de_la_informacion_financiera

https://www.launion.com.mx/opinion/actualidad-fiscal/noticias/25905-beneficios-y-limitaciones-de-los-estados-financieros.html

Restriction of financial information for Companies

Accounting is the art of registering, classifying and summarizing, in economic terms, the company’s commercial activities, giving rise to interpretation of the results as approximately is possible to reality. The accounting record of the different transactions gives as a result the financial statements, the latter show us the economic situation of a company for a certain date.

However, the accuracy of the financial statements results in monetary terms has limitations as follow: 

The financial statements data are only provisional reports, since the given data is only as approximate data, the validity of them is transitory and relative. This is because the statements are prepared for specific dates, generally they are generated for a period of one year. The economic reality of a company can only be determined when it is liquidated or sold.


The Financial Statements refer specifically to the ongoing businesses, they are based on different aspects, which are estimates that are considered in the different sections of the accounting periods.

 Another limitation found in the financial information is that the Financial Statements does not adjust to the real monetary value, since it does not take into account the purchasing power of the currency, nor the costs of the assets, that with the passage of time decreases, in addition to the variations of the prices in the current market, in addition to this the present economic conditions are not taken into account. An example of this is the increase in sales, which may be due to a rise in sales prices, which does not mean that more units are being sold.

Financial information does not reflect those products that can not be quantified, such as intellectual property, research products, ideas, strengths and weaknesses of employees, products and services under development. Only the financial position of the company is shown in the financial statements.

They are not a reflection of the factors that transgress in the financial position. These factors include the raw materials with their commitments, their sources and promises. In addition to that, financial information is analyzed according to the reasons, which differ according to the relevance of the information.

All the data that are registered in the accounting and are shown in the financial statements of the companies, is processed through the principles of accounting and personal judgments of the accountant. The financial statements are analyzed and compared with current liabilities.

Transactions, evolutions and / or internal, external changes and other aspects around the business that affect the entity's economic and financial level are recognized in accordance with current regulations, which are applied differently, as established in the policies of the company, the sector and the economy, which makes comparability with other companies in the sector a limitation.

It is important to bear in mind that all these limitations mentioned can be clarified in the notes to the financial statements, according to the accepted accounting principles and criteria of the accountant and the administration of the company.

Participants
Diana Pineda
Bibiana Aguirre
Kelly Mendez