Nif Serie E (Ingles)

Index

3

4

11

15

22

26
3

4

11

15

22

26

Introduction

Section A: Agriculture

a. Government subsidies

Section B: income and contributions
received by nonprofit purpose entities,
and contributions provided for them

Conclusions

Bibliography

Introduction

This project is a summary of the Information Reporting Standards Serie E (Normas deInformación Financiera) here is explained the most important features about the agricultural activities, which is in section number A, and the section number B is explained the income and contributions received by nonprofit purpose entities, and contributions provided for them.
The International Accounting Standards have been incorporated into its regulations the concept of fair value for thevaluation of certain assets and liabilities, which leads us to include this concept in these rules.
These rules are very important because a company or individual can understand the agricultural market to make decisions or establish prices.

These standards are divided in two sections; the first one is the Agriculture and the purpose of this section to establish the accounting treatment of thetransformation of biological assets in the administration of agriculture (farming), and the corresponding presentation and disclosure in the financial statements. These standards will be effective for financial statements covering accounting periods beginning on or after 1 January 2003.

The second one is the income and contributions received by nonprofit purpose entities, and contributionsprovided for them and the objectives of this section are: a. establish the rules of recognition, valuation, classification and disclosure of income and contributions received by nonprofit purpose entities, and b. establish rules for recognition, measurement and disclosure of contributions provided by the nonprofit purpose entities.

A) Agriculture

Preamble

This section from the norms talksabout the countable treatment of biological assets, with the concept of a countable period, which quantifies a change in the financial situation and the operation result of the entity. The transformation of the assets must be recognized in the corresponding period of time, and those changes are considered as transformations when their effects can be quantified in monetary terms.

The income canbe defined as the increase of assets, or diminution of liabilities from an entity, with the effect of a net profit during a countable period, as a result of the operations from their primary or normally activities. The asset increase is referred to the management achievements.

This section improves the financial information because it is congruent with the “status of changes”, whichestablishes to measure the results of the goals achieved and the efforts developed, also to evaluate the profitability and performance of the company, estimate the credit potential, quantity, time, measure risks.

Objective

This section from the financial norms has the purpose of establish the countable treatment of the biological assets transformation in the management of agricultural activities, alsothe corresponding presentation and revelation of the financial statements.

Scope

The Financial Information Norms apply to every entity that performs agricultural activities with relation to:
a) Biological assets
b) Agricultural products in the harvest time
c) Governmental subsidiaries

Although this letter applies for almost everything, there are some points which are not included inthese norms:
a) Land referred with agricultural activities
b) Intangible assets referred with agricultural activities

This section applies to the agricultural product, which is the product harvested from the biological assets of the entity, just in harvest time. From beyond that point the, the section C is used. For example the grapes process to convert them into wine, is carried out by...