What is income according to NIF?

Article by: Guillermo Reina | Last update: April 10, 2022
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Revenues are the increases in economic benefits, produced throughout the accounting period, in the form of income or increases in the value of assets, or as decreases in liabilities, which result in increases in net worth, and are not related with the contributions of the owners …

What are revenues and costs?

Income and expenses refer to changes in a company’s financial assets caused by operations. Income increases wealth, spending reduces it, although it is also important to know the nature of both.

What is income in accounting?

Income is an increase in economic resources. This must be understood in the context of assets and liabilities, since it is the recovery of an asset. Income represents increases in the net worth of your company. It can be the increase in the value of your assets or the decrease in a liability.

What is IAS 18 income?

The objective of this Standard is to establish the accounting treatment for revenue arising from certain types of transactions and other events. (c) the use, by third parties, of the entity’s assets that produce interest, royalties and dividends.

What does NIF A 5 say?

NIF A-5 defines them as “a resource controlled by an entity, identified, quantified in monetary terms, from which future economic benefits are reasonably expected, derived from operations that have occurred in the past, which have affected said entity economically.”

36 related questions found

What is the classification of the asset under IFRS?

Assets that are identified as financial can be listed as follows: Cash and cash equivalents. Accounts receivable. Inversions in actions.

What NIF speaks of the general balance?

The objective of NIF B-6, Statement of financial position, is to establish the standards for the presentation and structure of the general purpose statement of financial position (also called balance sheet or statement of financial position) so that the statements of financial position that are issued are comparable …

When should income be recorded?

In short, expenses and income must be recorded in accounting when they have actually been accrued or made and not when they are paid or collected, as the case may be.

When was IAS 18 repealed?

As we see as of 01.01.2018, IAS 11 and 18 are repealed, which on many occasions have been sources of interpretation for tax purposes.

What is an income and an example?

Ordinary income is that which is obtained habitually and customarily; for example, the salary of a worker who works in a stable job or the sales of a company to a client who buys periodically or regularly.

What standard is in force for accounting for income?

IFRS 15 contains comprehensive guidance for accounting for revenue and will replace the requirements that are currently set out in a series of Standards and Interpretations. This means that for many entities, the timing and profile of revenue recognition will change.

When does IFRS 15 become effective?

In May 2014 the Board issued IFRS 15 Revenue from Contracts with Customers, together with the introduction of Topic 606 in the Accounting Standards Board Codification of Accounting Standards.

How is income recorded?

Income is always recorded on credit. That is, they are paid into account.

When should a company’s income and expenses be recognized?

“The costs and expenses of an entity must be identified with the income they generate in the same accounting period, regardless of the date they are incurred.”

How is deferred income recorded?

The recording of deferred income applies to the company’s balance sheet. The latter receives cash (an asset on the balance sheet) and records deferred income (a liability on the balance sheet).

What is the NIF B-6?

This Financial Information Standard (NIF) establishes the rules for the presentation and structure of the general purpose statement of financial position (ESF) (it can also be called a balance sheet or statement of financial position).

What is NIF b3?

The objective of NIF B-3, Statement of comprehensive income, is to establish the general standards for the presentation and structure of the statement of comprehensive income, the minimum requirements for its content and the general disclosure standards.

How is the balance sheet presented under IFRS?

The balance sheet under IFRS is an indicator that measures how your company’s accounting and financial status are in a given period.

What are the asset classifications?

Asset Classification

Fixed asset. They are the assets used in the business and not acquired for sale purposes, such as machinery and real estate. Current assets. They are assets that are expected to be used in less than a year, such as inventories.

How can financial assets be classified?

Depending on their maturity period, financial assets can be divided into short-term and long-term. Monetary and short-term assets. Their contract pays for itself in a short period of time (generally less than a year) and they tend to offer low returns. Medium and long-term assets.

How to make a record of income and expenses?

The record in the income and expenses book must take into account that the income received or accrued and the expenses paid or owed must be expressed in pesos, depending on the type of movement. A gloss must be incorporated according to the operation carried out, that is, whether it is an income or an expense.

What is the objective of IFRS 15?

1 The objective of this Standard is to establish the principles that an entity will apply to present useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a client.

What standards does IFRS 15 repeal?

IN3 IFRS 15 repeals: (a) IAS 11 Construction Contracts; (b) IAS 18 Revenue from Ordinary Activities; (c) IFRIC 13 Customer Loyalty Programs; (d) IFRIC 15 Real Estate Construction Agreements; (e) IFRIC 18 Transfers of Assets from Customers; and (f) SIC-31…

What does IFRS 15 indicate in relation to income recognition?

The basic principle posed by IFRS 15 is that an entity recognizes revenue from ordinary activities in such a way that it represents the transfer of goods or services committed to customers in exchange for an amount that reflects the consideration to which the entity expects to be entitled to receive. change of sayings…

What are the types of income?

types of income

    Public income. Those received by the State or its various dependencies from taxes and other collection mechanisms. Private income. … Ordinary income. … Extraordinary income. … Total revenue. … Marginal income. … Average income.

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