The Opening Of Accounting To The Present Value In The Context Of Passing From The Accruals To Cash
Passing through the globalization period, we are witnesses of a larger gateway to the values general accepted in the developed and developing countries. Part of this process is represented by the accounting craft. So, after the period when accounting was representing a static image and then a dynamic one, now it seems to be in accordance with this continuing evolution. As long as more companies are using the IFRS and the evaluation of assets and debts is based on the fair or present value it is talking about as it is named an actuarial accounting. According to the development of an economy, the actual (present) value means an estimation of future cash flow by a rate. Practically seems to be an inclination towards the engagement accounting as long as the events are recognized & reported when arise not when cash is collect or paid. In spite of this, for a company a good profit and loss account doesnï¿½t mean a strong treasury situation too. Even if, there is a convention of using the accrual accounting I try to develop o strategy regarding the cash flow information ï¿½ based on the cash accounting as an exception of this, for a correct evaluation of liquidity, knowing the strong influence for economic decisions. So, the cash foresees are used for the financial security of company through an adjustment of unjustified payments. Regarding to all of those reasons, a joining of accruals with cash may be an important factor for a correct evaluation financial statements.
Volume (Year): 3 (2008)
Issue (Month): 4(6)_Winter2008 ()
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