Equity Of The Construction Company

Equity of the Construction Company

Introduction

It is essential that the construction companies must have a code of ethics, in order to bring excellent management of the established projects, which is why characteristics are presented that every reliable construction company must possess and thus not affect their capital, to minorrisks and these are the following:

• The assets that are had in the construction companies are the collection goods and rights that it has in terms of the activity to which it is dedicated in order to minimize debts or obligations established to third parties.
• There must be goods that are owned by the institution, that is, its facilities, machinery, furniture, finished products and inventories of raw materials which are contracted by customers with the project they want for their future execution
• Construction companies must receive collection rights from the client, since these are credits has granted for the provision of construction companies.
• They should know how to handle the obligations or debts that construction companies have with their suppliers, banks, among others that allow them to finance the investment made, in addition to the misuse of assets, the company can be affected and taking it to bankruptcy.

Developing

Accounts

It is the one that contains the accounts needed to register each of the economic facts in a chronological way, it is a systematic ordering to be told that the accounting system is integrated in this case of the construction companies, the account plan conforms to the needsthat each of the companies has

Active

They intend to generate economic income in the future, are all the goods and rights that companies have and have the potential to obtain money is through its use, sale, among others in this case buildings, machinery, raw materials for the execution of theprojects, investments and the collection rights that the construction company has with its customers. (Mercedes, S.F.)

Passives

They are all obligations or debts contracted by the construction companies of past events and that will have the responsibility of paying off. Debts can be established with suppliers, debts with financial institutions, anticipation of customers, taxes and salaries payable, among others;In order to know how to handle all these expenditures so that in the future the entity does not have problems with the heritage or break

Heritage

Heritage is all the assets that these can be material and immaterial elements for example machinery, raw material, building, money that is in cash, in addition to the rights that it has as loans granted or quantities owed by customers and obligations are the responsibilitieswhich has the entity to pay an establishment or a person in a certain time

Net Heritage = Goods + Rights – Obligations.

Income

These are all the profits in a company in this case for offering services to the customers that the construction company provides, it is a patrimonial economic increase because it increases the asset and reduces the liabilities and obligations of the same

Bills

These are generated by all companies and are a disbursement or money output either in cash or bank account, an expense can take the form of the payment of some service such as light, lease, gas, telephone, or other deductions

Financial Statement Structure

It is possible to know the financial situation of the construction company through the different financial statements at the end of an accounting period, since these provides us with the company economicly and financially (companies, S.F.)

Balance sheet

It is one that reflects at a certain time the economic and financial information of a company, it is constituted by: Active, liabilities and Net Heritage.

It is also a tool that offers basic company information in a single look. In other words, the company has, the amount of debt or obligations pending or the goods that it has. By having such extensive information, it is vitally important to keep it in order.

Cash flow statement

Informs about cash variations and movements and their equivalents in a given period. According to the NIF-B2, the cash flow status is a state that shows the sources and applications of the entity’s cash during a given period, which are classified as operation, investment and financing activities.

Shows cash inputs and outputs and the entity’s resources application during the period

Comprehensive result status

According to the author, it is a report where we can visualize in a detailed and systematic way the income and expenses obtained at the time they occur and the benefit it generates whether it is utility or loss within a given period and thus seek solutions if imbalance and imbalance are presentedto improve performance and predict results in the future

State of change of heritage

Its purpose is to show the variations suffered by the different elements that make up the heritage in a given period.

It seeks to explain and analyze each of the variations, its causes and consequences within the financial structure of the company, this is a financial report in which the variations (increases and decreases) of the residual value of the assets of the assets of the assets of thea company, having deducted all obligations.

conclusion

This provides the necessary elements for users to read them and can clearly understand them, and thus obtain the greatest utility of them. The minimum information necessary to understand how the financial statements were carried out, what were the accounting policies that were used, that is, clarifications or explanations of events or quantifiable situations or not that are presented in the movement of the accounts were made, which occur in the movement of the accounts,the same that must be read together to the financial statements for a correct interpretation. 

Bibliography

• companies, e. Y. (s.F.).
• Financial., N. d. (2018). Mexican Institute of Public Accountants. (2018). Financial Reporting Standards.
• Gabilos. (s.F.).
• Jauregui, m. (s.F.).
• Mercedes, b. (s.F.). GENERAL ACCOUNTING. 
• Seville, a. (s.F.).