FACULTY OF BUSINESS SCIENCES

AND ECONOMIC
ACCOUNTING CAREER

Preparation of financial statements

WORK NOTEBOOK

Prepared by: The Professors of the Course

2023
 Table of contents

OBJECTIVE OF THE WORKBOOK............................................................3

STRUCTURE OF FINANCIAL STATEMENTS...............................................................4
REVISION BASIC ACCOUNTING CONCEPTS.............!Error! Undefined marker.
DISTINCTION BETWEEN ASSET, LIABILITY, EQUITY, INCOME AND EXPENSE.............122
Preparation of the Comprehensive Income Statement and Statement of
FINANCIAL SITUATION
STATEMENT OF RESULTS FOR THE PERIOD....................................................2525
STATEMENT OF CHANGES IN EQUITY..........................................................31
IDENTIFICATION OF CASH FLOWS BY ACTIVITIES............................3535
CASH FLOW STATEMENT AND THE STATEMENTS
FINANCIALS........................................................................................................................37
PREPARATION OF THE STATEMENT OF CHANGES IN EQUITY AND STATEMENT OF
CASH FLOWS
PREPARATION OF CASH FLOW STATEMENT............................................4141
PREPARATION OF FINANCIAL STATEMENTS INTEGRAL CASES..................................49
SUBSEQUENT EVENTS AFTER THE REPORTING DATE – NIC 10....................................522

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 OBJECTIVE OF THE WORKBOOK

Provide our students with a learning resource, where various cases are presented to them.
for each topic developed in the Financial Statements Preparation course, in order to
they are resolved with the teacher in the classroom as well as for them to be resolved by the
students in the additional dedication hours for the course. With the following purpose:
- Reinforce what you learned in class and in the reading of the textbook chapters of the course.
- Identify opportunities for improvement in your learning.

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 STRUCTURE OF THE FINANCIAL STATEMENTS

CASE 1 STRUCTURE OF THE STATEMENT OF FINANCIAL POSITION

Present the structure or format of the Statement of Financial Position.

4
CASE 2 STRUCTURE OF THE INCOME STATEMENT INTEGRALS
Present the structure or format of the Statement of Comprehensive Income.

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 REVISION OF BASIC ACCOUNTING CONCEPTS

CASE 1 Read the statements carefully and answer T or F. Support your answer.

The net profit for the period is always equal to the cash balance. That profit is not necessarily the
the cash we have, the income has not necessarily been collected nor the expenses necessarily have been
paid.
The revenues shown in the income statement include the VAT, as they must be
equal to the total amount of the invoice to the clients. F because the VAT is a tax, not an income
for the business

The payments to the sales staff for salaries and commissions are part of the
cost of sales. V Everything that is deducted from income is outflows that have
I receive to generate that income; if they did not contribute to generating that income, it is not an expense.

The income tax that appears in the income statement includes the tax on the
income tax and the sales tax or IGV. F because the income is an expense that we have.
What to give to the state, sales tax IGV is not an expense.

Interest income from bank time deposits is included in the profit.

gross. F- gross profit comes from sales - cost of goods sold

Liabilities + Assets = Equity.

In a statement of financial position, the inventories appear as current assets.

they are goods already sold to the customer.

A loan from shareholders to the company increases both assets and liabilities.

A contribution from shareholders increases the assets and equity of the company.

If I work from home, as part of the anti-Covid protocol, personal furniture

What I use must be part of the assets of the company where I work.

A charge to customers does not increase assets or equity.

Accounts are used when in a financial position statement the asset is not
equal to liabilities plus equity.

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 Fixed assets are inventories that have not been able to be sold in a current period.

The machinery is recorded in non-current assets.

The quality of a company's management is an asset that is reflected in the state of

financial situation. F

Prepaid expenses are operating expenses that appear on the statement of

results. F
Accounts receivable from customers in current assets include the VAT.

The earnings of the period increase equity, and the losses of the period increase
the passive.

Intangibles can be brands, programs or patents.

Current assets depreciate. F
Assets are the goods and rights of the company.
V

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CASE 2 IMPACT AND/OR EFFECT OF ACCOUNTING OPERATIONS ON FINANCIAL STATEMENTS

1. The company JUVENTUS SAC is dedicated to the buying/selling of sports shoes. It carried out the
purchase of a lot of 1,000 shoes for S/300,000 to sell them. Made the payment of the
40% with bank transfer and the remaining balance agreed to be paid within a period of 90 days. Which statement
is correct:

a. Current assets decrease by S/120,000, non-current assets increase by

S/300,000 and increases current liabilities by S/180,000.
b. Increase the total assets by S/300,000, increase the total liabilities by S/180,000 and increase the
cost of sales at S/120,000.
c. Current assets and current liabilities increase by S/180,000 each.
d. Increases the total assets and liabilities by S/300,000 each.

2. Fixed assets are purchased outright for the amount of S/500,000. Which statement is correct?

a. Increase total assets and total liabilities by S/500,000 each.

b. The total assets and equity increase by S/500,000 each.
c. The total assets and revenues increase by S/500,000 each.
d. There is no variation in the amounts of total assets, liabilities, and equity.

3. A loan of S/1,000,000 is received from Reactva Peru. The loan has a

Year of grace. Without considering the interests, how does it impact the financial statements?

a. Increase liabilities and equity by S/1,000,000 each.

b. There is no variation in the amounts of assets, liabilities, and equity.
c. Current assets increase by S/1,000,000 and non-current liabilities increase by
$1,000,000.
d. The non-current asset increases by S/1,000,000 and the current liability increases by
$1,000,000.

4. The company issues shares worth S/200,000 which are fully acquired by the
shareholders. What is the impact on the financial statements?

a. Increase the non-current asset and equity by S/200,000 each.

b. Current assets and equity increase by S/200,000 each.
c. Increase the total assets and liabilities by the amount of S/200,000 each.
d. Current assets and equity decrease by S/200,000 each.

5. S/240,000 is paid in advance for the 2-year rental of the office. What is the impact on
the financial statements?

a. The amounts of total assets, liabilities, and equity do not vary.

b. Non-current assets and non-current liabilities increase by S/240,000 each.
c. Current and non-current assets increase by S/120,000 each and liabilities increase.
current at S/240,000.

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 d. Decrease current assets by S/240,000 and increase non-current assets by
S/240,000.

6. If we debit the accounts payable for S/30,000 and credit the cash account.
S/10,000, which statement is correct?

a. The liability increases by S/30,000 and the asset decreases by S/10,000.

b. Liabilities decrease by S/30,000 and assets decrease by S/10,000.
c. Current assets increase by S/10,000 and liabilities decrease by S/30,000.
d. The liability decreases by S/10,000 and the asset decreases by S/30,000.

50,000 S/ is received in cash from a client as an advance for the sale of the new
MAX sneaker collection that will arrive in Lima in 3 months. Which statement is correct?

a. It is debited from customer advances and credited to cash the amount of S/50,000.
b. It is credited to the account and charged to the customer advances account the amount of
S/50,000.
c. It is debited to the expense and credited to the customer advance account for the amount of
S/50,000.
d. It is charged to the expense and debited to the customer advances account in the amount of S/50,000.

8. A property that was used as an office is sold for cash for the amount of S/100,000.
Net book cost is S/80,000. How does it impact the financial statements?

a. The total assets increase by S/100,000 and a gain from the sale of fixed assets is generated by the
same amount.
b. Current assets increase by S/100,000, non-current assets decrease by S/80,000.
and increases the exercise profit by S/20,000.
c. Increases the total active assets by S/20,000 and decreases the profit for the period by the
same amount.
d. Current assets increase by S/20,000, non-current assets decrease by S/80,000
and increases the exercise profit by S/20,000.

9. Stocks are sold at a price of S/100,000, 50% is charged in cash and the balance is due in 180 days.
If the cost of the inventory was S/70,000, which statement is correct?

a. Current assets and the profit for the period increase by S/30,000.
b. Increase current assets and the profit for the period by S/100,000.
c. Current assets increase by S/100,000 and sales revenue by S/100,000.
d. Decreases current assets by S/70,000 and increases net income by
$30,000.

10. The company makes a capital contribution to its subsidiary for the amount of S/25,000. The contribution
It is carried out in cash. What is the impact on the financial statements?

a. The non-current asset and the profit for the period increase by S/25,000.
b. The total assets and total liabilities increase by S/25,000.
c. The amounts of total assets, liabilities, and equity do not vary.

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 d. Increases the equity by S/25,000 and decreases the cash by S/25,000.

CASE 3 IMPACT AND/OR EFFECT OF ACCOUNTING OPERATIONS ON THE ACCOUNTING EQUATION

Below are detailed 4 independent transactions from each other.
You are requested to define the accounts involved and the balances that would remain as of December 31.
2022, in each of the indicated categories.

Likewise, it will be necessary to determine the appropriate PRESENTATION of the accounts involved in the
disposed format.

On December 30, EL POZITO S.A.C. receives a loan from Interbank for

$300,000, which will be paid in full on July 31, 2024, in monthly installments.

ACTIVE PASSIVE HERITAGE

ACCOUNT CURRENT NON-CURRENT CURRENT NON-CURRENT

Transaction 2: MAFESA SA has investments of S/. 100,000 as of December 31, of which S/.
80,000 correspond to shares of MINERA VOLCAN, from which it expects to obtain a return.
for 2024 of approximately 10%. The difference of S/.20,000 corresponds to investments
negotiables of the INKAMEDIC Laboratory, these actions will be maintained for 3 months. (1 point)

ACTIVE PASSIVE HERITAGE

ACCOUNT CURRENT NON-CURRENT CURRENT NON-CURRENT

Transaction 3: José Parro Inmobiliaria S.A. leases a warehouse to use it as a filing storage.
documentary. On October 31, he paid S/. 45,000 equivalent to 6 months of rent. The contract
a period of 1 year starting from November 2022.

ACTIVE PASSIVE HERITAGE

ACCOUNT CURRENT NOT CURRENT CURRENT NOT CURRENT

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 Transaction 4:The company Barranquito SAC sold some vehicles that were part of its fleet.
distribution of merchandise for the amount of S/800,000 in cash. If the sold fleet has a value of the
Cost accounting books S/1,200,000 and accumulated depreciation S/700,000, answer the following:

ACTIVE PASSIVE HERITAGE

ACCOUNT CURRENT NON-CURRENT CURRENT NON-CURRENT

CASE 4 TRIAL BALANCE

The company TAY LOUIS S.A.C is dedicated to the marketing of home products. The column of
balances of your trial balance at the end of December 31, 2022, which do not consider the calculation of
Income tax, is the one shown below. Do not calculate the income tax.

TAY LOUIS S.A.C

As of December 31, 2022

Balances Settings Adjusted balances

Accounts Must S/ News S/ Must S/ News S/ Should S/ News S/
Sales 330,000 330,000

Administrative expenses 33,000 32500 65,500

Other accounts receivable 7,000 7,000
Gain from exchange rate difference 14,000 2500 16,500

Cost of sales 175,000 175,000

Selling expenses 48,000 48,000
Financial expenses 4,000 3000 7,000

Taxes Payable - VAT 30,000 30,000

Effective and effective eq. 90,000 90,000
Accounts Receivable 70,000 2500 15000 57,500

Estimation of accounts receivable doubtful 15,000 15000

Inventory 128,000 128,000

Property, plant, and equipment 260,000 260,000
Accumulated depreciation 46,000 32500 78,500

Rentals contracted in advance 28,000 28,000

Intangible 32,000 32,000
Accounts payable 15,000 15,000

Financial Obligations 35,000 3000 38,000

Capital 350,000 350,000

Accumulated results as of 1/1/2020 40,000 40,000

875,000 875,000

The General Manager of the company has observed the following situations that are not correct.
registered or not registered, for which it requests your support and incorporate them into the sheet of

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previous work.

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1. The assets included in the account Real Estate, Machinery and equipment destined for commercial activity
they are assets with a useful life of 8 years and the depreciation for the year had not been recorded. PPE:
260000/8=
Sales expense (Depreciation for the period) 32,500 debit
Accumulated depreciation 32500 on the credit side

2. The company has a bank loan that it received during the year; by the end of the year, there were...
accrued interest of S/ 3,000, which had not been recorded either.
Financial expenses 3000 on the debit side
Financial obligations 3000 on the credit side

3. Part of the Accounts Receivable there is one for $5,000 that was found
registered exchange rate S/ 3.35 per $, which at the end of the year was S/ 3.85

CxCxC 2500 on the debit

Financial income 2500 to the credit

4. The account castigo had not been recorded. in Collection. Doubtful.

Provision for doubtful collection (EXPENSE) 15000
Provision for doubtful collection for the year 15000

Doubtful collection provision 15000

CxCxC 15000
Castle of the Collection

Requested:
Complete the table that contains the balances before adjustment. (2 points for each operation with)
the requested adjustments
Prepare the Income Statement for the year 2020, Complete and Correct. (3 points)
Prepare the Statement of Financial Position as of December 31, 2022. Complete and Correct.
(3 points)

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 DISTINCTION BETWEEN ASSET, LIABILITY, EQUITY, INCOME, AND EXPENSE

CASE 5
For each operation presented below, identify the place that corresponds to it.
presentation of the Financial Statements. Each operation is independent.

Consider the following concepts:

Current assets
NIC 1.66 An entity will classify an asset as current when:
a) intends to realize the asset, has the intention of selling it or consuming it in its normal cycle of
operation
(b) keep the asset mainly for trading purposes;
(c) expects to realize the asset within twelve months following the period in question
informs
(d) cash is cash or cash equivalent (as defined in IAS 7), unless
this is restricted and cannot be exchanged or used to cancel a
passive for a minimum period of twelve months after the exercise in question
inform.
An entity will classify all other assets as non-current.

Current liabilities
NIC 1.69 An entity shall classify a liability as current when:
expects to settle the liability in its normal operating cycle;
(b) maintain the passive mainly for negotiation purposes;
the liability must be settled within twelve months following the date of the period regarding
the one who is informed; or
d) note an unconditional right to defer the cancellation of the liability for at least,
the twelve months following the date of the reporting period (see paragraph
73). The conditions of a liability that may give rise, at the discretion of the other party, to its
settlement through the issuance of equity instruments does not affect their
classification.
An entity will classify all other liabilities as non-current.

Materiality or relative importance and data aggregation

NIC 1.29 An entity shall present separately each significant class of similar items.
An entity will present separately the items of different nature or function, unless
that do not have relative importance.

Compensation
NIC 1.32 An entity shall not offset assets against liabilities or income against expenses unless
as required or permitted by an IFRS.

NIC 1.34 IFRS 15 Revenue from Ordinary Activities Arising from Contracts with Customers
requires an entity to measure the revenues from ordinary activities arising from contracts

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with clients for the compensation to which they expect to be entitled in exchange for transferring the
goods or services committed.
For example, the amount of income from ordinary activities recognized reflects any
commercial discounts and volume sales reductions that the entity allows.
An entity carries out, in the course of its ordinary activities, other transactions that do not
they generate income from ordinary activities but are secondary in relation to the
main activities that generate these incomes.
An entity will present the results of these transactions by offsetting the revenues with
the related expenses generated by the same operation, as long as such presentation
reflect the background of the transaction or another event.

For example:
an entity will present the gains and losses from the disposal of non-current assets,
including investments and operating assets, deducting from the received amount the amount of
the consideration for this provision is the book value of the asset and the expenses of
corresponding sales.

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 STATEMENT OF FINANCIAL POSITION INCOME STATEMENT
ACTIVE PASSIVE EXPENSE
OPERATION ACTIVE ACTIVE NO PASSIVE PASSIVE NO HERITAGE NO NO
OPERATIONAL OPERATIONAL
CURRENT CURRENT CURRENT CURRENT OPERATIVE OPERATIONAL
As of 31/DEC/2020, the effective share of the balance of 1,000,000 100000
check you have a balance of S/900,000 made up of:
Available Money or Funds: 1,000,000
Bank overdrafts: 100,000
Net balance 900,000
As of 31/DEC/2020, the cash share of the balance of 800000 100000
Check you have a balance of S/900,000 integrated
by: Money or Available Funds: 800,000
Seized money or funds: 100,000
Net balance 900,000
The management plans to lift the embargo in 2022.
As of December 31, 2020, the cash part of the balance of 700000
check have a balance of S/700,000 integrated
by: Money or Available Funds 600,000
Money or seized funds 100,000
Balance 700,000
The management hopes to lift the embargo in 2021.
As of 31/DEC/2020, the share of accounts receivable – 200000 1,800,000
clients, from the trial balance, shows a balance
of S/3,500,000 consisting of: 1500000
Overdue accounts receivable 200,000
Accounts due in 2021 1,500,000
Accounts that expire in 2022 1,800,000
Balance 3,500,000

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 STATEMENT OF FINANCIAL POSITION INCOME STATEMENT
ACTIVE PASSIVE EXPENSE INCOME
OPERATION ACTIVE ACTIVE NO PASSIVE NOT PASSIVE HERITAGE NO NO
OPERATIONAL OPERATIONAL
CURRENT CURRENT CURRENT CURRENT OPERATIONAL OPERATIONAL
As of 31/DEC/2020 the account receivable balance - 4,000,000
clients, from the trial balance shows a balance because it is net
of S/5,000,000 made up of:
Invoices that expire in 2021 4,000,000
Invoices in doubtful collection 1,000,000
5,000,000-
Balance 5,000,000
1,000,000
The invoices in doubtful collection are found
provided for doubtful collection..

As of December 31, 2020, the share of accounts receivable – 3,000,000 500,000

clients, from the trial balance, shows a balance
of S/2,500,000 consisting of:
Invoices due in 2021 3,000,000
Advances received from clients (500,000)
Net balance 2,500,000
As of 31/DEC/2020, the part of Services paid for 1,755,000
advance of the trial balance, presents a
balance of S/1,755,000 that corresponds entirely to
rents paid in advance for the months of January
to October
from 2021.
As of 31/DEC/2020, the account receivables from shareholders 380,000 1,440,000 (net)
the trial balance shows a balance of 1,440,000
S/940,000 consisting of:
Loans to staff 380,000
Unpaid subscribed shares 560,000
The subscribed share capital is
S/2,000,000 (social capital only is)
registered subscribed and paid

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As of December 31, 2020, the property, plant, and equipment share of 1,700,000 (acti 13,300,000
your position to the (15,000,000-
the trial balance shows a balance of
vein) 1,700,000
S/15,000,000 which includes unused goods put in
sale for S/1,900,000. Its book value is S/1,700,000

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 STATEMENT OF FINANCIAL POSITION INCOME STATEMENT
ACTIVE PASSIVE EXPENSE INCOME
OPERATION ACTIVE ACTIVE NO PASSIVE NOT PASSIVE HERITAGE NO NO
OPERATIONAL OPERATIONAL
CURRENT CURRENT CURRENT CURRENT OPERATIONAL OPERATIONAL
As of December 31, 2020, the merchandise account and the account

finished products from the trial balance 9,000,000

amount to S/6,000,000 and S/4,000,000 integrated (net)
by: Goods 6,000,000
Finished products 4,000,000
10,000,000
Estimated loss of value 1,000,000
Net balance 9,000,000
As of 31/DEC/2020, the accounts payable - 300,000 2,700,000
third parties, from the trial balance, presents a balance
of S/2,400,000 consisting of:
Invoices due in 2021 2,700,000
Advances granted to suppliers (300,000)
Balance 2,400,000
As of 31/Dec/2020, there are properties leased to third parties 6,700,000
measured to reasonable values. The fair value of the
The property amounts to S/6,700,000.
As of 31/DEC/2020, the Intangible Assets portion of the balance of 370000 (net)
Check having a balance of S/490,000 and the loss
accumulated amortization S/120,000
As of 31/DEC/2020, the share of other various accounts payable 550,000 2,500,000
the trial balance shows a balance of
S/1,950,000 consisting of:
CTS to be paid 1,500,000
Tax credit for VAT ( 550,000)
Vacation pay 1,000,000
Balance 1,950,000
In the year 2020, discounts and reductions were made in favor 870000(income
from clients for S/870,000. Negative)
The sales of the year 2020 of goods from the line of business 10,000,000
amounted to S/10,000,000

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 STATEMENT OF FINANCIAL POSITION INCOME STATEMENT
ACTIVE PASSIVE EXPENSE INCOME
OPERATION ACTIVE ACTIVE NO PASSIVE PASSIVE NO HERITAGE NO NO
OPERATIONAL OPERATIONAL
CURRENT CURRENT CURRENT CURRENT OPERATIONAL OPERATIONAL
As of December 31, 2020, the breakdown of accounts payable - 2,100,000 1,700,000
third parties, from the trial balance, shows a balance
of S/3`800,000 composed of:
Unpaid overdue invoices 500,000
Invoices due in 2021 1,600,000
Invoices due in 2022 1,700,000
Balance 3,800,000
During the year 2020, a profit was generated by difference 30,000 net
in exchange for S/230,000 and a loss due to difference in
exchange of S/200,000
The current income tax for the year 2020 amounts to
S/330,000
During the year 2020, profits were received in the amount of 380,000 380,000
from S/380,000 for investments in instruments of
heritage of other entities
In the year 2020, used machinery was sold for cash.
at S/430,000. At the date of sale, it had a cost of
acquisition of S/1,100,000 and accumulated depreciation
from S/700,000.
During the year 2020, discounts and reductions were granted.
about sales of S/200,000
On December 30, 2020, a capital increase was made.
issuing 100,000 shares with a nominal value of
S/1.00 each for which shareholders paid S/1.20
by action
On December 30, 2020, a capital increase was carried out.
issuing 100,000 shares with a nominal value of
S/1.00 each for which the shareholders paid S/0.90
by action.

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 Preparation of the Comprehensive Income Statement and Statement of Financial Position
FINANCIAL

CASE 6

With the financial information corresponding to Lobito S.A.

year ended December 31, 2020, which is presented below:

It is requested:
1. Complete the Trial Balance and prepare the Statement of Comprehensive Income and
the Statement of Financial Position. Consider that the business cycle is less than 12
months.

2. Furthermore, consider the following information:

a) Effect. The cash balance shown in the trial balance
is composed of: S/
Effect on cash 30,000
Fixed Funds 10,000
Deposits in Banks: Checking Accounts
Interbank: Current account 200,000
Interbank: Checking Account ( 640,000
Scotabank: Current Account (Seized by SUNAT)* 100,000
Creditor balance (300,000)

(*) Management estimates that in the year 2021 the embargo will be lifted and that the
The figure is important or material.
must news
Effect 640,000
Overdraft 640,000

AC(Funds subject to 100,000

restriction
Effect 100,000

b) Accounts receivable. The balance of Accounts Receivable.

Third parties shown in the trial balance include:
S/.
Overdue accounts 200,000
Accounts that will expire within the next 12 months 900,000

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 Accounts that mature after 12 months 580,000
Total 1,680,000
Estimation of doubtful accounts 130,000

Accounts receivable 580,000

commercial (non-current)
Accounts Receivable 580,000
commercials

Estimation of 130,000
doubtful collection
Accounts receivable 130,000
commercials

c) Accounts receivable from shareholders and capital. The company's share capital is
consisting of 1,500,000 common stock shares subscribed at a value
nominal of S/. 1 each, of which only 1,200,000 are paid
actions at their nominal value. During the 2020 fiscal year, there was no change in
social capital.

Effect 120,000
Capital 100,000
Share premium (additional capital) 20,000

Effect 90,000
Capital 100,000
Discount on issuance 10,000

Capital 100,000
Equity capital (10,000)
Accumulated results 100,000

Social capital 300,000

Accounts receivable shareholders 300.00

Services paid in advance. The balance of the account Services Paid for
The advance shown in the trial balance corresponds to
rents that will be fully accrued in the year 2021. Current asset.

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23
 e) Financial Investments. The balance of the Financial Investments account that is
shows in the trial balance, corresponds to shares of others
acquired companies with the purpose of exercising control over them. Active not
current.

f) Accounts payable. The balance of the Accounts Payable account.

Commercials shown in the trial balance include:
S/.
Overdue accounts 400,000
Accounts that are due within the next 12 months 500,000
Installments that expire after 12 months 300,000
Total 1,200,000

Trade accounts payable 300,000

Commercial Accounts Payable NC 300,000

g) Various accounts payable. The various accounts payable shown in

the trial balance is made up of: $
Compensation for service time 110,000
Income tax - balance in favor and tax credit
for IGV (200,000)
Vacation pay 400,000
Share in profits payable 300,000
Tax credit ( Others 200,000
activos Ac
Accounts payable 200,000
various Pc

h) Financial obligations. The balance shown in the balance sheet

Verification, corresponds to a loan that will fully mature on
14/FEB/2021

i) Any other receivable or payable account, shown on the balance sheet

verification, expires within 12 months after the date of the statement
of financial situation.

j) Revaluation surplus. As of December 31, 2020, the balance is S/340,000

what is shown in the trial balance is composed of:
S/300,000 corresponds to the revaluation carried out on 31/DEC/2020 of
your assets of Property, plant and equipment, recognizing a surplus
revaluation of S/300,000 net at 29.5% income tax
deferred. (Deferred income tax liability)
S/40,000 corresponds to revaluations made in previous years.

k) Withdrawals. In the year 2020, it wrote off property, plant, and equipment.
revalued in previous years. The revaluation surplus of S/40,000

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 comes from previous years and is maintained in the assets under the name of
revaluation surplus

l) Assets and liabilities for deferred taxes. IAS 1.56 When an entity
present in the statement of financial position the assets and liabilities
classifieds

25
in current or non-current, will not classify the assets (or liabilities) by
deferred taxes as current assets (or liabilities).
NIC 12.74 An entity must offset deferred tax assets against
deferred tax liability if, and only if:
(a) has legally recognized the right to offset, current assets
for taxes against current liabilities for taxes; and
(b) the deferred tax assets and the deferred tax liabilities are
derived from the income tax corresponding to the same authority
fiscal, which falls upon:
(i) the same entity or tax subject; or
different entities or subjects for tax purposes that intend, either
liquidate the current tax assets and liabilities at their net amount, already
to carry out the assets and pay the liabilities simultaneously, in each
of the future periods in which liquidation or recovery is expected
Significant amounts of assets or liabilities for deferred taxes.

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 Sums Balances Financial situation Results
Accounts
Must News Deudor Active Passive/Pat Expenses
Social Capital 0 1,500,000
Financial Expenses 40,000 0
Cash effect and cash equivalent 900,000 1,200,000
Income from exchange rate differences 0 120,000
Accounts Payable - Third Parties 3,000,000 4,200,000
Dividends Payable 80,000 100,000
Financial Investments 192,000 50,000
Loss due to exchange rate difference 190,000 0
Gross Sales 0 5,000,000
Additional Capital 0 100,000
Administration Expenses 400,000 0
Accounts Receivable – Third Parties 5,680,000 4,000,000
Accumulated Depreciation of Property, Plant and Equipment
team 0 300,000
Cost of Sales 3,500,000 0
Discounts granted on Sales 200,000 0
Goods 5,750,000
Various accounts payable 200,000 810,000
Property, plant and equipment 1,140,000 0
Inventory devaluation estimation 0 200,000
Services Paid in Advance 236,000 12,000
Supplies 60,000 0
Accounts receivable - related 500,000 0
Financial Income 0 150,000
VAN

27
 Sums Balances Financial situation Results
Accounts
Should News Debtor Creditor Active Passive/Equity Expenses
VIENEN
Legal Reserve 0 60,000
Deferred tax assets 450,000 0
Revenue from machinery sales 0 300,000
Selling and distribution expenses 170,000 0
Estimate for doubtful collection 80,000 210,000
Revaluation surplus 0 340,000
Financial obligations 50,000 400,000
Cost of disposal sale of machinery 180,000 0
Expense for Income Tax 54,000 0
Deferred tax liabilities 0 1,200,000
Accounts receivable from shareholders 300,000 0
SUMS 23,352,000 23,352,000
Result of the Exercise
EQUAL SUMS 23,352,000 23,352,000

28
CASE 7

The company EL GATITO S.A. that engages in commercial activities of buying and selling
bicycles. During the year 2020, it has carried out the additional operations that are described
further down:
Its financial position and comprehensive income statement as of and for the year ended December 31
from December 2022, before including additional operations, is the following:

Statement of financial position

As of December 31, 2022
ACTIVE S/
Current assets
Effect 1,000,000
Accounts receivable from customers 800,000
Total current assets 1,800,000

Non-current assets
Property and transportation units 200,000
Accumulated depreciation ( 70,000
Total non-current assets 130,000
TOTAL ASSETS 1,930,000

LIABILITIES AND EQUITY

Current liabilities
Accounts payable commercial 600,000
Income tax payable 300,000
Total current liabilities 900,000

Non-current liabilities
Deferred income 100,000
TOTAL LIABILITIES 1,000,000

HERITAGE
Capital 859,000
Accumulated results 71,000
TOTAL ASSETS 930,000
TOTAL LIABILITIES AND EQUITY 1,930,000

29
Comprehensive income statement
For the year ended December 31, 2022
S/
Income from ordinary activities 350,000
Cost of sales (250,000)
GROSS PROFIT OR COMMERCIAL MARGIN 100,000

Selling and distribution expenses 30,000

Administrative expenses ( 5,000
RESULTS OF OPERATIONS 65,000
Financial income 9,000
RESULT BEFORE TAXES 74,000
Income tax 3,000
RESULT OF THE EXERCISE 71,000

OTHER INTEGRAL RESULTS 0

71,000
COMPREHENSIVE RESULT OF THE EXERCISE

Additional operations carried out in the year 2022

a) Purchased bicycles on credit for a purchase value of S/15,000.
b) Collected cash invoices from clients for S/500,000
c) Sold on credit 60% of the bicycles purchased, with a profit margin
(gross profit) of 10%
d) Increased capital through the cash contribution of its shareholders (owners) of S/.
100,000
e) He bought the brand 'FUERZA' outright to market the bicycles that
It will be manufactured soon, paying S/50,000 plus VAT.
f) He obtained a bank loan of S/200,000
g) Depreciated the property used by the administration area by 2%, which amounts to
S/3,000
h) Vehicles that the marketing area used which have a cost of S/60,000 and a
accumulated depreciation of S/40,000 were no longer used and were put up for sale at
S/25,000
He obtained a bank overdraft of S/15,000 that he used to pay his suppliers.
j) He was the victim of a robbery and lost S/. 8,000
k) Recognized as losses for S/12,000, accounts receivable from customers that are in
condition of debtors.
An amount of S/30,000 that was deposited in Interbank was
judicially embargoed by a third party. The amount is not material, does not require being
please present the document separately.

Requested:
Include the operations in the attached financial statements and prepare new statements.
financial.

30
 INCOME STATEMENT FOR THE PERIOD

CASE 8
The following outlines economic events that took place in the year 2022 corresponding to
the Commercial Company LA BEBE S.A. whose business activity is the buying and selling of
appliances that have an operation cycle of less than twelve (12) months.
a) During the year 2022, he received S/ 35,000 for interest on his deposits.
deadlines in banks.

b) During the year 2022, he sold appliances for a sales value of S/3,000,000.
with a profit margin of 20%.

On December 12, 2022, he sold for cash used vehicles that had cost S/140,000.
S/430,000 and had an accumulated depreciation of S/340,000

At the end of 2021, part of its warehouse suffered a fire, remaining

unusable household appliances that were 100% insured with the company.
Rímac Insurance
S.A. that had a cost or book value of S/ 500,000 and its selling value was S/
625,000.

On February 14, 2022, Rímac Insurance Company S.A. delivers to the Commercial Company LA BEBE.
S.A. the amount of S/500,000 for reimbursed losses from incidents that occurred in the year
2019.

As of December 31, 2021, it had financial obligations of US$ 500,000.

Exchange rate of US$ 1 = 3.40. They were fully canceled on 29/JAN/2022 being the time
exchange rate of US$ 1 = 3.25

g) The selling expenses of 2022 were equal to 6% of the sales of the year 2022 and the
administrative expenses 10% of sales for the year 2022.

In 2022, interest expenses amounted to S/ 95,000.

The income tax expense (on profits) for the year 2022 was S/ 160,000 from the
which in the year 2021 made advance payments of S/ 130,000.

It is requested:

1. Formulate the Comprehensive Income Statement for the year 2022.

31
CASE 9
With the financial information corresponding to La Luz Solar S.A.
corresponding to the year ending December 31, 2022, which is presented to
continuation:

Request:
1. Complete the Trial Balance and prepare the Comprehensive Income Statement.
the Statement of Financial Position. Consider that the business cycle is less than 12
months.
2. Furthermore, consider the following information:

a) Cash effect and cash equivalent. The cash balance shown in the
the trial balance INCLUDES an overdrafted current account in the
INTERBANK for S/2,200,000.

b) Accounts Receivable - Customers. The balance shown in the balance sheet

of verification, includes: S/
Overdue accounts, not collected 500,000
Accounts that are due within the next 12 months 380,000
Accounts that expire after 12 months 800,000
Total 1,680,000
Estimation of doubtful accounts 320,000

c) Services Paid in Advance. The balance shown in the statement of

verification, corresponds to rents that will be accrued in the years 2022 and
2023 at a rate of S/.16,000 monthly.

d) Non-current assets available for sale. The balance of the account that is
shows in the trial balance, corresponds to 2 plots of land put into the
sales in the YEAR 2022.

e) Financial obligations. The balance of the account shown in the balance sheet.
of verification, corresponds to a loan that will mature 30% in 2022;
50% in 2023 and 20% in 2024.

f) Accounts Payable. The balance shown on the balance sheet of

verification includes:
S/
Overdue accounts, unpaid 400,000
Accounts that expire within the next 12 months 500,000
Installments that expire after 12 months 300,000
Total 1,200,000

g) Miscellaneous accounts payable. The balance shown in the statement of

the verification consists of: S/

32
 Compensation for service time 189,000
Income tax - balance in favor and tax credit
for IGV (200,000)
Vacation pay 600,000
Profit-sharing payable 300,000
TOTAL 889,000

Property, plant, and equipment and revaluation surplus. On December 31

from 2022, the balance of S/340,000 shown in the balance sheet
verification consists of:
As of December 31, 2022, the company revalued 3 properties it had.
a book value of S/900,000. The new value was S/1,325,532. The
deferred income tax was 29.5%
$40,000 corresponds to revaluations made in previous years.

i) Any other receivable or payable account, that is shown on the balance sheet
verification, expires within 12 months from the date of the statement
of financial situation.

33
 You add Balances Financial situation Results
Count
Must News Debtor Creditor Active Passive/Pat Expenses
Social Capital 0 2,000,000 2,000,000
Cash effect and equivalent cash 900,000 1,200,000 300,000
Accounts Payable 3,000,000 4,200,000 1,200,000
Non-current assets available for sale 680,000 0 680,000
Loss due to exchange rate difference 190,000 0 190,000
Gross Sales 0 5,000,000 5,000,000
Share premium 0 250,000 250,000
Administrative Expenses 400,000 0 400,000
Accounts Receivable - Customers 5,680,000 4,000,000 1,680,000
Accumulated Depreciation 0 300,000 300,000
Cost of Sales 3,500,000 0 3,500,000
Merchandise 5,750,000 3,100,000 2,650,000
Accounts payable various 200,000 889,000
Property, plant and equipment 1,140,000 0 1,140,000
Inventory devaluation estimation 0 200,000 200,000
Services Paid in Advance 236,000 12,000 224,000
Containers and packaging 400,000 0 400,000
Financial Income 0 150,000 150,000
Legal Reserve 0 110,000 110,000
Deferred tax assets 450,000 0 450,000
Revenue from vehicle sales 0 300,000 300,000
Selling and distribution expenses 170,000 0 170,000

34
 Sums Balances Financial situation Results
Count
Must News Debtor Creditor Active Passive/Pat Expenses
Doubtful collection estimate 80,000 400,000
320,000
Revaluation surplus 0 340,000
340,000
Financial obligations 50,000 400,000
350,000
Cost of alienation from vehicle sales 180,000 0
180,000
Expense for income tax 45,000 0
45,000
SUMS 23,051,000 23,051,00011,709,000 11,709,000
Result of the Exercise
EQUAL SUMS 23,051,000 23,051,00011,709,000 11,709,000

35
CASE 10 PREPARATION OF THE INTEGRATED INCOME STATEMENT

Below are the transactions made by the company PREMIUM USADOS

S.A. (dedicated to the marketing of used luxury cars) during the fiscal year 2021, is
they carried out the following operations:

I. The gross sales of the used units were S/ 4,500,000 with always a 5% applied.
discount, while the commercial margin obtained in the year was 35%.
II. The detail of accounts receivable is indicated in the following table.
the company has a policy to estimate the doubtful collection of all those invoices with more
over 60 days overdue. This provision must be made during the year 2021.

GAME Balances as of 12/31/2021

Accounts receivable - Not overdue 45,000
Accounts receivable - Overdue more than 30 days 82,000
Accounts receivable - Overdue by more than 60 days 21,000
Accounts receivable – Overdue more than 90 days 12,000

III. On June 1, 2021, the office rental contract was paid in advance.
administrative for S/. 300,000 for a period of 12 months.
IV. On September 15, 2021, machinery was sold for cash for USD$ 35,000.
exchange S/ 3.98 for 1 USD$. The machinery at the time of sale had a cost of
acquisition of S/ 245,000 and an accumulated depreciation of S/ 185,000.
V. Payroll expenses represent 10% of net sales and advertising expenses
represents 12% of net sales.
On December 28, 2021, the company receives dividends from the investments it had in
mining companies, the dividends received amount to S/ 85,000.
VII. On December 31, 2021, the company decides to carry out an appraisal of its machinery.
The revalued value amounts to S/ 375,000. The acquisition cost of the machinery amounts to
S/ 850,000 and as of that date, it has an accumulated depreciation of S/ 680,000.
VIII. The income tax amounts to S/ 180,000.

Requested:
Prepare the Comprehensive Income Statement (by function or by nature of expense) for the year
finished on December 31, 2021.

36
 STATEMENT OF CHANGES IN EQUITY

CASE 11
MINERVA S.A. starts operations on 01.03.2018 and has as commercial activity the
buying and selling of bicycles. As of 31.12.2019, it has the following assets:
Social capital 5,000,000 fully paid ordinary shares at a value
nominal of S/1.00 each.
100,000 treasury shares repurchased for cash at S/1.30 each.
Legal reserve S/900,000
Accumulated results:
Loss year 2018 (800,000)
Utility year 2019 900,000
During the year 2020, among other operations, it carried out the following:
a) On March 30, 2020, the General Shareholders' Meeting (GSM) approved to use the profit of the
exercise 2019 to cover the total accumulated loss.
b) In compliance with Article 229 of Law 26887 - Law of Corporations, the entities that at the en
from the exercise obtain financial profits, they are obliged to constitute a RESERVE
LEGAL, deducting from the distributable profit of the period a minimum of 10% until the
Legal reserve reaches 20% of the subscribed share capital. The company's policy is to apply
a 15%.
c) On June 30, 2020, the General Shareholders' Meeting approved the sale of 100,000 treasury shares for a value of
$1.50 per share.
d) On 31/DEC/2020, he revalued his production machinery. The new revalued value is
S/2`560,000. They were purchased in 2013 for a value of S/. 4`300,000 and at
On 31/DEC/2020, they had an accumulated depreciation of S/2,000,000
e) The net income for the period 2020 after income tax was S/1,800,000

During the year 2021, among other operations, it carried out the following:
a) In compliance with Article 229 of Law 26887 - Corporations Law, the entities that at the en
from the exercise, they obtain financial profits, they are required to establish a RESERVE
LEGAL, deducting from the distributable profit of the period a minimum of 10% until the
Legal reserve reaches 20% of the subscribed share capital. The company's policy is to apply
a 15%.
b) On March 25, 2021, the General Shareholders' Meeting (GSM) agreed:
Distribute dividends (profits) at a rate of S/0.30 per share.
Increase the share capital by capitalizing the balance of the results
accumulated and the balance of treasury shares.
c) On NOV 30, 2021, an expense for depreciation for the year 2018 was recognized for S/ 50,000.
accounted for in due time.
On December 31, 2021, the General Shareholders' Meeting approved the conversion of ten (10) ordinary shares with a nominal value

from S/1.00 for an ordinary share valued at S/10 each

e) The net profit for the year 2021 after income tax was S/.
2,500,000.

Requested:
1. Formulate the Statement of Changes in Equity for the years ended December 31
December of 2020 and 2021.

37
CASE 12

As of December 31, 2019, the entity TOMONORTE S.A. has as its activity
Commercial buying and selling of bicycles has the following assets:

Social capital of 1,000,000 fully paid common shares with a value

nominal of S/5.00 each.
10,000 ordinary shares repurchased in treasury at S/6.60 each.
Legal reserve S/450,000
Accumulated results:
Loss year 2018 (250,000)
Utility year 2019 900,000

During the year 2020, among other operations, it carried out the following:
a) On 30/MAR/2020, the General Shareholders' Meeting (GSM) approved covering the total loss.
from the year 2018 with the profits of the fiscal year 2019.
b) In compliance with Article 229 of Law 26887 - Corporate Law, the entities that at the end
from the exercise obtain financial profits, they are required to create a RESERVE
LEGAL, deducting from the distributable profit of the period a minimum of 10% until the
Legal reserve reaches 20% of the subscribed share capital. The company's policy is to apply
a 10%.
c) On 30/JUN/2020, the General Shareholders Meeting approved the sale of the 10,000 treasury shares for a value of
$6.00 per share.
d) On 31/DEC/2020, it revalued its production machinery. The new revalued value is
S/2,900,000. They were purchased in 2013 for a value of S/4,300,000 and had a
accumulated depreciation of S/2,000,000. The income tax rate is 29.5%
e) The net income for the period 2020 after income tax was S/1,200,000
During the year 2021, among other operations, the following were carried out:
On March 25, 2021, the General Shareholders' Meeting (GSM) agreed:
In compliance with Art. 229° of Law 26887 - Company Law, the entities that
At the end of the exercise, they must obtain financial profits and are obliged to establish a
LEGAL RESERVE, deducting at least 10% from the profit of the period until
that the Legal Reserve reaches 20% of the paid capital. The company's policy is
apply a 10%.
Distribute dividends (profits) at a rate of S/0.35 per share.
Cover the loss of the buying and selling operations of treasury shares
with the accumulated profits.
Increase the social capital through the capitalization of the balance of results
accumulated.
g) On 31/DEC/2021, the General Meeting approved the split of common shares with a nominal value of
S/5.00 for ordinary shares with a nominal value of S/1.00 each.
On December 31, 2021, a shareholder sold 100% of their shares to another shareholder of TOMONORTE S.A.
shares at S/1.40 each
The net profit for the year 2021 after the income tax was S/4
500,000.

Request for:
1. Formulate the Statement of Changes in Equity for the years ending December 31st
December 2020 and 2021.

38
Case 13

As of December 31, 2019, the entity FUERZA ESTUDIANTES S.A. has

commercial activity the manufacture, purchase, and sale of fabrics, has the following assets:

Social capital of 500,000 fully paid ordinary (common) shares at their value
nominal of S/5.00 each. The shareholders are:
Pura Vida S.A. Company Owner of 200,000 shares
El Torete S.A. Company Owner of 150,000 shares
Miguel Guerrero Owner of 100,000 shares
Thais Farfán Owner of 50,000 shares
Legal reserve S/400,000
Accumulated results:
Loss year 2018 (150,000)
Utility year 2019 700,000
During the year 2020, among other operations, he/she carried out the following:
a) On March 30, 2020, the General Shareholders' Meeting (GSM) approved:
a. Cover the total loss of the year 2018 with the profits of 2019.
b. In compliance with Art. 229° of Law 26887 - Corporate Law, the entities that
at the end of the exercise to obtain financial profits, they are obliged to establish a
LEGAL RESERVE, deducting from the distributable profit of the period a minimum of
10% until the Legal Reserve reaches 20% of the subscribed share capital. The policy
the company is to apply (deduct) 15%.
c. Declare (payment agreement) dividends (profits) for the balance of the profits
accumulated.
On June 30, 2020, the General Shareholders Meeting approved the repurchase of the 50,000 shares owned by Thais.
Farfán paying S/4.00 for each share.
c) On 30/SEP/2020, shareholder Miguel Guerrero sold 30% of his shares to Company El
Torete S.A. The amount of the cash transaction was S/180,000
On 31/DEC/2020, it revalued its production machinery. The new revalued value is
S/3,000,000. They were purchased in the year 2013 for a value of S/4,300,000 and they had a
accumulated depreciation of S/2,000,000. Income tax rate 29.5%
e) The net income for the year 2020 after income tax was S/4,500,000.

During the year 2021, among other operations, it carried out the following:
On March 25, 2021, the General Shareholders' Meeting (GSM) agreed:
In compliance with Article 229 of Law 26887 - Companies Law, the entities that
At the end of the exercise, they must obtain financial gains and are required to establish a
LEGAL RESERVE, deducting a minimum from the distributable profit of the period
10% until the Legal Reserve reaches 20% of the subscribed share capital. The policy
the company is to apply (subtract) 15%.
Distribute dividends (profits) at the rate of S/2.00 per share.
Increase the share capital by capitalizing the balance of profits
accumulated.
g) On December 31, 2021, the General Meeting approved:

a. Split the ordinary shares with a nominal value of S/5.00 each into shares
ordinary shares with a nominal value of S/1.00 each.
b. Sell the treasury shares for S/190,000.

39
 c. Increase the share capital by issuing 100,000 new shares with a nominal value
of S/1 each, through new cash contributions from the shareholders. 70% was
contributed on 31/DEC/2021 at the rate of S/1.40 per share. The balance was contributed on
January 15, 2022
h) The net profit for the year 2021 after the income tax was S/3
500,000.

Requested:
1. Prepare the Statement of Changes in Equity for the years ended 31
December of 2020 and 2021.

40
 IDENTIFICATION OF CASH FLOWS BY ACTIVITIES
CASE 14
OPERATION INVERSION FINANCING
OPERATIONS
ENTRY ENTRY EXIT ENTRY
Sale of goods for cash at a selling price of
S/ 11,800
Cash dividend payment of S/5,000 for investments
in shares of other companies
Purchase of 3,000 shares of the company itself paying
S/1.30 per share and whose nominal value is S/1
Cash sale for S/12,000 of a used vehicle by the
company whose book value is S/10,000
Amortization (payment) of bank loans for S/23,000
of which S/3,000 corresponds to interest.
Payment of S/25,000 for income tax
Declaration (payment commitment) of cash dividends
for S/40,000
interest on S/100,000 paid on obligations on
bonds placed for cash raising.
Payments of installments of S/25,000 for a contract of
financial lease
Payment of S/30,000 for worker bonuses
Cash purchase of 10,000 bonds paying S/1,200 for
each one having a nominal value of S/1,000
Payment of dividends in kind (merchandise) for S/30,000

41
 OPERATION INVERSION FINANCING
OPERATIONS
ENTRY ENTRY EXIT ENTRY
Sale of 1,000 treasury shares at S/1,300 each, that
were repurchased at S/1,100 each
Charge of S/114,000 to an Insurance Company for
recovery of loss
Collection of a commercial debt for S/16,000
Provision for doubtful collection accounts for the year for
$5,000
Subscription of 10,000 ordinary shares due to increase of
capital of a nominal value of S/10 each
Collection of S/2,000 from past due accounts receivable

Issuance and placement of new shares of the company by

a total of S/ 100,000.
Amortization of intangibles in the year for S/8,000
Loss of goods valued at S/45,000 and cash
for S/3,500 as a result of an assault

42
CASE 15 CASH FLOW STATEMENT AND FINANCIAL STATEMENTS

With the financial statements presented below, prepare the Cash Flow Statement.

December 31, 2020 31.12.19

S/.
Effect 3,000 1,000
Clients 0 1,000
Land 1,000 0
Suppliers 2,000 1,000
Capital 1,000 1,000
Accumulated Result 1,000 0
Sales 4,000 0
Cost of Sales 3,000 0

43
PREPARATION OF THE STATEMENT OF CHANGES IN EQUITY AND CASH FLOW STATEMENT

CASE 16
The following is a list of operations carried out by the company LOS
SOUTH WOLVES S.A. during the years 2020 and 2021.

As of December 31, 2019, it has the following assets:

Share capital of 5,000,000 fully paid ordinary shares with a nominal value
S/1.00 each.
100,000 treasury shares repurchased at S/2.00 each.
Legal reserve S/1,000,000
Cumulative results:
Loss year 2017 500,000
Loss year 2018 (200,000)
Utility year 2019 800,000
During the year 2020, among other operations, the following were carried out:
On March 30, 2020, the General Shareholders' Meeting (GSM) approved:
apply the profits from 2019 to cover the losses of the years 2017 and 2018.
ii. in compliance with Article 229 of Law 26887 - Law of Companies, the entities that
At the end of the exercise, they must obtain financial utilities; they are required to establish a
LEGAL RESERVE, deducting a minimum from the distributable profit of the period
10% until the Legal Reserve reaches 20% of the subscribed share capital. The policy
The company's policy is to deduct 15% from the distributable profit of the period.
iii. distribute dividends (profits) in cash from the balance of the profits
accumulated. During the year 2020, shareholders received 75% in cash and the
the balance was collected in 2021.
b) On June 30, 2020, the General Shareholders' Meeting approved the purchase of 150,000 ordinary shares of its own.
Company paying in cash S/1.90 for each share. The payment was made on 02/JUL/2020.
c) On 31/DEC/2020, it revalued its production machinery. The new revalued net value is
45% higher than the historical net value or value before revaluation. As of 31/DEC/2020 the
net worth before revaluation is as follows:
Cost S/1,400,000
Accumulated depreciation $1,000,000
Net worth S/400,000
The income tax rate is 29.5%
The net profit for the period 2020 after income tax was S/3,400,000
During the year 2021, among other operations, the following were carried out:
As of 31/DEC/2020, I had cash amounting to S/3,000,000.
f) Administrative expenses of S/240,000 were paid in cash
g) Invoices for S/5,000,000 were collected in cash from clients.
h) Rental payments were made in cash for S/340,000
Invoices for S/2,900,000 were paid in cash to suppliers.
A cash loan was obtained from INTERBANK for S/3,000,000
k) Cash of S/1,000,000 was received as dividends from investments in shares.
from other companies.
An effective loss of S/300,000 was incurred in a robbery at the company.
m) Shares of other companies were purchased in cash for S/560,000

44
 n) The income tax was paid in cash for S/890,000 of which
S/700,000 corresponds to the outstanding balance from the year 2020 and S/190,000 as a payment.
from the year 2021.
Bank loans amounting to S/400,000 were paid.
On January 30, 2021, all treasury shares were sold for cash.
S/2.50 per share.
On March 27, 2021, the General Meeting of Shareholders (GMS) decided:
In compliance with Art. 229 of Law 26887 - Law of Companies, the entities that
At the end of the exercise, obtain financial utilities; they are obliged to constitute a
LEGAL RESERVE, deducting from the distributable profit of the period a minimum of
10% until the Legal Reserve reaches 20% of the subscribed share capital. The policy
The company is to deduct 15% of the distributable profit of the period. If exceeded
Due to the limit, a discretionary RESERVE must be maintained because of the difference.
Distribute dividends (profits) in cash at a rate of S/0.30 per ordinary share.
of which 60% was paid in cash in 2021
Increase the share capital by capitalizing the balance of the results
accumulated and new contributions in cash of S/500,000. The cash was received on
29/MAR/2021
On 20/OCT/2021, a shareholder of LOBOS DEL SUR S.A. sold to another shareholder for cash.
from LOBOS DEL SUR S.A. 100% of its shares at S/4.40 each.
The net profit for the year 2021 after income tax was S/3.
500,000.
As of December 31, 2021, I had cash amounting to S/6,570,000.

It is requested:
1. Formulate the STATEMENT OF CHANGES IN EQUITY for the years 2020 and
2021, complying with all the formalities of its presentation.
2. Formulate the STATEMENT OF CASH FLOWS using the direct method corresponding to
year 2021, complying with all presentation formalities.
CASE 17

The company MEXICAR SAC is preparing the Financial Statements as of December 31.
2021 and 2020. You are responsible for preparing the Statement of Changes in Equity of
the years 2021 and 2020, as well as the Statement of Cash Flows direct method for the year 2021.
To do this, you have the following information:

A. In the Financial Position Statement as of December 31, 2019, the company shows
the following information related to the company's assets:
The social capital is made up of 1,000,000 shares at a nominal value of S/5.00.
shares were issued with an emission premium equivalent to 15% of the nominal value.
The legal reserve amounts to S/850,000 and the company's policy is to deduct 20% from the
distributable profits in accordance with the General Law on Corporations.
The accumulated results amount to S/2,500,000, which corresponds to the profit of the year.
2019.

B. Regarding the transactions for the year 2020, we have the

next:
1. At the General Shareholders' Meeting held on March 31, 2020, the decisions were made
following agreements:
45
 Establish the legal reserve in accordance with the provisions of the General Law.
Companies. Due to the Covid-19 situation, it was also decided that if there exists
any excess, this should be used for the establishment of a reserve
faculty.
Distribute dividends at the rate of S/1.80 per share corresponding to the profits of
year 2019.
Due to the balance of the profits from the year 2019, it was agreed to capitalize and issue the number of
corresponding actions.
On June 30, 2020, the company receives a loan from Banco Nuevo Mundo to fulfill
with the payment of 60% of the dividends that were agreed to be distributed at the General Shareholders' Meeting on the 31st
from March 2020 and the balance was paid in January 2021.
On July 31, 2020, the company acquired 150,000 shares of its own company that
were offered by one of its shareholders for the value of S/4.80 per share.
On December 31, 2020, it was decided to revalue machinery whose cost amounts to
S/1,400,000 has accumulated depreciation equivalent to 60% of the cost. The value of
The market determined by the appraiser is S/1,200,000.
5. During the year, sales amounted to S/5,800,000 and the net profit for the year is
equivalent to 45% of sales.

C. The transactions of the year 2021 are the ones mentioned below:
1. In the General Shareholders' Meeting on March 31, 2021, the following actions are taken
agreements:
To solely constitute the legal reserve in accordance with the provisions of the General Law.
of Societies.
Distribute S/2,000,000 as dividends corresponding to the profits
In the year 2020, 70% was paid in June 2021 and the balance in September 2021.
For the balance of the undistributed profits, it was decided that they be kept in
accumulated results will be reviewed and a decision will be made at the next meeting.
2. The sales for the year were S/8,000,000, 70% in cash and 30% on credit. Likewise, it was
he collected 35% of the sales from the year 2020 that had remained pending for collection in
that year.
3. A loan of S/950,000 was received from Banco Nuevo Mundo. Likewise, during the year
They accrued interest on the amount of S/105,000, of which the bank was paid the
import of S/80,000.
4. An amount of S/1,350,000 is paid to the company's suppliers.
5. Dividends are received from the investments that the company has for the amount of
S/660,000.
130,000 treasury shares are sold for cash at a price of S/5.50.
7. The profit before tax amounts to S/3,500,000, the income tax expense is
S/1,032,500 and payments were made towards income tax S/1,200,000.
Also, the balance of the Cash and cash equivalents account as of December 31
In 2020 it amounts to S/1,000,000.

It is requested:
1) Prepare the Statement of Changes in Equity as of December 31, 2020 and 2021.
(14 points)
2) Statement of Cash Flows for the year 2021. (6 Points)

46
 Preparation of Cash Flow Statement

CASE 18
With the financial information corresponding to the company LOS TRES PATITOS S.A.
corresponding to the year ended December 31, 2020 and 2019, which is presented to
continuation, formulate the cash flow statement:

THE THREE LITTLE DUCKS S.A.

INDIVIDUAL STATEMENT OF SITUATION
FINANCIAL
As of December 31, 2020 and 2019

ACTIVE 31/12/2020
Current assets S/ S/ S/
Effect 4,500,000 2,000,000
Marketable investments 770,000 300,000
Accounts receivable - customers, net 1,370,000 1,100,000
Inventories, net 2,500,000 2,310,000
Taxes to be recovered 250,000 300,000

Total current assets 9,390,000 6,010,000

Non-current assets
Investments in subsidiaries 600,000 1,450,000
Buildings, plant and equipment, net 2,078,000 2,300,000
Total non-current assets 2,678,000 3,750,000

TOTAL ASSETS 12,068,000 9,760,000

S/ S/
LIABILITIES AND EQUITY
Current liabilities
Accounts payable - Third parties 2,420,000 2,750,000
Benefits for workers 1,200,000 1,500,000
Income tax payable 400,000 850,000
Total current liabilities 4,020,000 5,100,000

Non-current liabilities
Payables 3,320,000 1,860,000
Total non-current liabilities 3,320,000 1,860,000
TOTAL LIABILITIES 7,340,000 6,960,000

HERITAGE
Paid-up capital 3,968,000 2,440,000
Legal reserve 160,000 160,000
Accumulated results 600,000 200,000
TOTAL ASSETS 4,728,000 2,800,000

TOTAL LIABILITIES AND EQUITY 12,068,000 9,760,000

- -

47
THE THREE LITTLE DUCKS S.A.
INDIVIDUAL STATEMENT OF RESULTS

For the year ending December 31 of

2020
S/
Gross sales 1,640,000
Cost of sales -1,312,000
GROSS PROFIT 328,000

Administrative expenses -450,000

Depreciation of the year -255,000
Expenses for employee benefits -255,000
RESULT OF OPERATIONS -632,000

Financial income 1,632,000

PROFIT BEFORE TAX
EARNINGS 1,000,000

Expense for income tax -400,000

NET INCOME FOR THE PERIOD 600,000

a)Marketable investments. In the year 2020, marketable securities were purchased for cash amounting to
S/470,000
b)Taxes to recover: In December 2020, S/50,000 was received in cash for
concept of tax refund.
c)Investments in subsidiaries: In June 2020, the entity sold for cash for S/850,000.
shares of other companies.
d)Property, plant, and equipment: During the year 2020, the entity purchased furniture for cash.
$33,000
e)Obligations payable: During the year 2020, it obtained bank loans for S/1,460,000.
f) Social capital: The capital was increased by S/1,528,000 through cash contributions.
Accumulated results: Cash dividends of S/200,000 were paid.
h)Administrative expenses: All administrative expenses were paid in cash.
accrued in the year.
i)Financial income: Received cash S/1,632,000 as dividends for
investments in other companies

48
CASE 19 PREPARATION OF THE CASH FLOW STATEMENT

Below is a list of operations carried out by the company LOS 4

ASES S.A. during the years 2019 and 2020.

Year 2019.
During the year 2019, among other operations, it carried out the following:
a) On March 30, 2019, the General Shareholders' Meeting (GSM) approved:
i. Increase the legal reserve by S/350,000.
ii. Distribute dividends (profits) in cash for S/2,000,000. During the year 2019.
The shareholders received 85% in cash and the remaining balance was received in 2020.
On December 31, 2019, it revalued its production machinery. The new revalued net value is
60% higher than the historical net value or value before revaluation. As of 31/DEC/2019 the
net worth before revaluation is as follows:
Cost S/3,500,000
Accumulated Depreciation S/2,800,000
Net worth S/700,000
The income tax rate is 29.5%
c) Administrative expenses of S/500,000 were paid in cash.
d) Cash invoices were collected from clients for S/3,000,000.
A cash loan of S/1,500,000 was obtained from INTERBANK.
Rent payments were made in cash for S/840,000
Invoices for S/1,900,000 were paid in cash to suppliers.
As of 31/DEC/2019, it had cash amounting to S/3,200,000.

YEAR 2020.
During the year 2020, among other operations, the following were carried out:
Invoices for S/2,300,000 were paid in cash to suppliers.
Bank loans of S/780,000 were paid off.
k) Interest expenses of S/140,000 were paid in cash.
Invoices totaling S/5,000,000 were collected in cash from customers.
Security services were paid in cash for S/560,000
A cash loan was obtained from INTERBANK for S/1,000,000
S/600,000 was received in cash for dividends from investments in shares.
other companies.
Cash shares of the company were purchased for S/460,000
The income tax was paid in cash for S/1,300,000 of which
S/200,000 corresponds to the outstanding balance for the year 2019 and S/1,100,000 as account payment.
from the year 2020
On March 27, 2020, the General Shareholders' Meeting (GSM) agreed:
Distribute dividends (earnings) in cash for S/1,200,000 of which in 2020
90% was paid in cash
Increase the share capital through new cash contributions of S/1,000,000. The
effect was received on 29/MAR/2020.
As of 31/DEC/2020, I maintained cash of S/........................

The request is made:

1. Prepare the STATEMENT OF CASH FLOWS using the direct method corresponding to
year 2020, complying with all presentation formalities.

49
CASE 20

The entity SOMOS GANADORES S.A. presents the following financial statements:

WE ARE WINNERS S.A.

STATEMENT OF FINANCIAL POSITION
As of December 31, 2019 and 2018
Expressed in thousands of soles

ACTIVE 2019 2018

Current asset
Effect 1,134 270
Accounts receivable 1,560 1,140
Inventories 810 1,290
Taxes to be recovered 350 350 0
Total current assets 3,854 3,050

Current asset
Funds subject to restriction 1,000 1,000 0
Property, plant, and equipment, net 1,332 900
Intangibles, net 240 270
Total non-current assets 2,572 2,170

TOTAL ASSET 6,426 5,220

LIABILITIES AND EQUITY

Current liabilities
Financial obligations 1,308 -
Accounts payable 1,830 2,184
Remunerations to be paid 264 324
Income tax payable - 234
Dividends payable - 390
Interest payable 12 -
Advances received from clients 750 750 0
Total current liabilities 4,164 3,882

Non-current liabilities
Deferred earnings 500 500
Deferred income tax 198 -
Total non-current liabilities 698 500

TOTAL LIABILITIES 4,862 4,382

HERITAGE
Paid capital 900 480
Treasury stocks - 30
Legal reserve 96 96
Issue premium 100 100
Revaluation surplus 474 0
Accumulated results -6 132
Total assets 1,564 838

TOTAL LIABILITIES AND EQUITY 6,426 5,220

50
WE ARE WINNERS
S.A. STATE OF
RESULTS
For the year ended December 31, 2019
Expressed in thousands of soles

Net sales 4,380

Cost of sales -2,910
Gross utility 1,470

Expenses for remuneration -570

Expenses for rentals -396
Expenses for depreciation -276
Expenses for amortization of intangibles -30
Expenses for services received from third parties -300
Operational loss -102

Financial expenses - Interest -12

Loss before taxes -114

Income tax -
Net loss for the period -114

Additional information:
a) Accounts receivable and sales
The movement analysis of the year 2019 is as follows:
Balance as of 31/DEC/2018 ………1.140……………….
More: Sales in the year 2019 ………4,380……………….
Less: Amount charged in the year 2019 ………3.960…Operation/entry
Balance as of 31/DEC/2019 ………1,560……………….
b) Inventories and cost of sales
The cost of sales was:
Inventory balance as of 31/DEC/2018 ………1,290………………..
More: Purchases in the year 2019 ………2,430………………..
Less: Balance as of 31/DEC/2019 …………810……………..
Cost of sales for the year 2019 ………2,910………………..
c) Taxes to be recovered
There was no movement in the year 2019.
d) Funds subject to restriction
There was no movement in the year 2019
e) Property, plant, and equipment
The motion analysis for the year 2019 is as follows:
Balance as of 31/DEC/2018 900
More: Revaluation year 2019 …672……….….
More: Purchases year 2019 ....36...inversion/saiida.......
Less: Depreciation year 2019
Less: Sales in the year 2019 ……0…………..
51
 Balance as of December 31, 2019 1,332
On December 31, 2019, machinery included in property, plant, and equipment has been
revaluated with the appraisal value of S/ 1,572 thousand. The machinery was acquired in the
year 2010 for S/2,100 thousand and had an accumulated depreciation of S/1,200 thousand. The rate of
income tax is: 29.5%
In 2019, there were no sales of property, plant, and equipment.
f) Intangibles
The movement analysis for the year 2019 is as follows:
Balance as of 31/DEC/2018 ……………………….
More: Purchases in the year 2019 ……………………….
Less. Sales in the year 2019 ………………………
Less: Amortization of the year 2019 ………………………
Balance as of 31/DEC/2019 ……………………….
g) Financial obligations
The balance of financial obligations (bank loan) as of 31/DEC/2019 was received
from BBVA in September 2019. As of December 31, 2019, S/12 thousand has accrued.
of interests that are NOT paid by that date.
Loans obtained 1,308 FINANCING/INCOME
h) Accounts payable commercial
The motion analysis of the year 2019 is as follows:
Balance as of 31/DEC/2018 ……………………..
More: Purchases in the year 2019 ……………………..
Less: Amount paid in the year 2019 ……………………..
Balance as of 31/DEC/2019 ……………………..
i) Remunerations payable
The motion analysis of the year 2019 is as follows:
Balance as of 31/DEC/2018 ………………………..
More: Earned remuneration year 2019 ...
Less: Amount paid in the year 2019 ………………………..
Balance as of 31/DEC/2019 ………………………..
j) Income tax payable
The motion analysis for the year 2019 is as follows:
Balance as of 31/DEC/2018 ………………………..
More: Tax accrued year 2019 ………………………..
Less: Amount paid in the year 2019 ………………………..
Balance as of 31/DEC/2019 ………………………..
k) Dividends payable
The movement analysis of the year 2019 is as follows:
Balance as of 31/DEC/2018 ………………………..
More: Dividends declared in the year 2019 ………………………..
Less: Amount paid in the year 2019 ………………………..
Balance as of 31/DEC/2019 ………………………..
l) Interest payable
The movement analysis of the year 2019 is as follows:
Balance as of December 31, 2018 ………………………..
More: Interest accrued in the year 2019 ………………………..

52
 Less: Amount paid in the year 2019 ………………………..
Balance as of 31/DEC/2019 ………………………..
m) Advances for services received from clients
The motion analysis for the year 2019 is as follows:
Balance as of 31/DEC/2018 ………………………..
More: Services accrued year 2019 ………………………..
Less: Amount paid in the year 2019 ………………………..
Balance as of 31/DEC/2019 ………………………..
n) Deferred income tax
The balance corresponding to the deferred tax corresponds to the excess of revaluation.
carried out on 31/DEC/2019
o) Heritage
Paid capital: On March 30, 2019, the General Shareholders' Meeting (JGA) approved a
capital increase of S/390 thousand that was received in cash in April 2019.
Dividends: In 2019, dividends of /390 thousand were paid that were declared.
In the year 2018. Likewise, on March 30, 2019, the General Meeting of Shareholders (GMS) approved
and declared dividends of S/24 thousand, which were paid to the
employees in effect.
Treasury stock: The treasury stock as of 12/31/2018 corresponds to the
utility in the purchase and sale of common stocks carried out during 2018. Said
The utility was capitalized in June 2019. No other capitalization that affects the...
capital during the year 2019.
There were no capital retrocessions, nor additional share buybacks. The capital contributions.
received from shareholders have been subscribed and are fully paid by the
shareholders.
p) Rental expenses
The movement analysis of the liability account 'Rent Payable' during the year
2019 is the following:
Balance as of 31/DEC/2018 of rents payable ...
More: Accrued rents year 2019 ………………………..
Less: Rent paid in the year 2019 ………………………..
Balance as of 31/DEC/2019 of rents payable .........................

1. It is requested:
Prepare the Cash Flow Statement for the year 2019 using the direct method. (Not required
reconciliation). Include appropriate heading (title).

53
OPERATION ACTIVITIES

INVESTMENT ACTIVITIES

FINANCING ACTIVITIES

54
 PREPARATION OF FINANCIAL STATEMENTS

INTEGRAL CASES

CASE 21

CZ Consorcios SA starts operations on 01.10.2019 with a contribution of S/ 20,000 from the partners.

The company restarts operations on 01.01.2020 with the following:

Cash-Banks 15,000
Merchandise 1,000 at S/ 10 each.
Insurance paid in advance S/ 600 (6 months)
Furniture for S/ 7,000 and accumulated depreciation for S/ 2,600
Accounts Payable to suppliers for S/ 5,000
Share Capital of S/ 20,000 and
Accumulated Results for S/ 5,000.

Commercial operations from January to March 2020:

- Form a Legal Reserve with 10% of the distributable profit until a limit is reached
of 20% of the share capital.
- Purchase of 800 units at S/ 12 each. Pays 80% in cash and will pay the balance in April.
- Sells 1,500 units at S/ 30 each. Charges 70% in cash and will collect the balance in April.
and May. Inventory Valuation Method FIFO.
- Pays salaries of S/ 6,000
- Contract monthly advertising for S/ 1,200. Pay for advertising for January and February.
The March advertising will be paid in April.
- The company takes out a bank loan for S/ 10,000
- The company buys a commercial property for S/ 30,000, pays an initial amount of S/ 10,000.
and the balance will be paid in 1 year.
- The shareholders' meeting approved the distribution of dividends, and the company pays dividends of S/ 2,000.
- The depreciation rate of furniture is 10% per year.
- The depreciation rate of real estate is 5% per year
- The commercial premises is purchased on 01.02.2020
- The income tax rate is 29.5%

The preparation of the 4 financial statements as of 31.03.2020 is requested.

CASE 22 COMPREHENSIVE CASE PREPARATION OF FINANCIAL STATEMENTS

The company INTEGRAL SAC began operations in 2020 with a cash capital contribution.
of S/1,000,000 represented by 100,000 shares of S/10 each. Its economic activity is the
bicycle sales. In the year 2020, the net profit was S/900,000 and closed the year with a balance in
Cash and cash equivalents of S/850,000, accounts receivable of S/700,000, inventories
for S/1,200,000 (1,000 bicycles at S/1,200 each) and accounts payable to suppliers for
S/850,000.
During the year 2021, the company carried out the following operations:
1. The General Shareholders' Meeting decided on the constitution of the legal reserve whose rate was
defined at 10% and the distribution of dividends S/5 per share was agreed upon, which was paid 60%
in the present year and the balance in the year 2022.

55
950 bicycles are sold on credit in the year at a price of S/2,000 each.
3. In the year, a loan is requested from Banco Nuevo Horizonte for the amount of S/2,000,000. To
On December 31, 2021, capital amounting to S/800,000 had been amortized and accrued.
interest on S/200,000, of which S/150,000 had been paid.
4. Administrative and sales expenses amount to 15% and 10% of sales respectively.
There are no outstanding payment balances at the end of the year.
5. 20,000 shares of the company are repurchased in cash at a price of S/4.5 per share.
6. Computer equipment is purchased for cash for the amount of S/100,000.
7. Calculate the Income Tax for the year by applying the percentage of 29.5% of the profit before.
of taxes. Additionally, it is known that the company made advance payments of the tax on
the rent is S/38,000.
It is known that the final balance as of December 31, 2021, of accounts receivable was S/600,000.
and the accounts payable to suppliers S/150,000.
It is requested to prepare the Statement of Financial Position, Statement of Results, Statement of Changes in
the Net Assets and Cash Flow Statement for the year 2021.

CASE 23

The following is a list of operations carried out by the company DISEÑOS.

NOVEDOSOS S.A. during the years 2020 and 2019.
As of December 31, 2019, it has the following equity:
Social capital 5,000,000 fully paid ordinary shares of a value
nominal of S/1.00 each.
Legal reserve S/ 800,000
Accumulated results:
Loss year 2017 800,000
Utility year 2018 1,800,000
b) As of 31/DEC/2020 and 31/DEC/2019, it presents some of its accounting accounts with their
corresponding balances:

Accounting Accounts December 31, 2020

December 31, 2019
CASH ? 3,600,000
TRADE ACCOUNTS RECEIVABLE 12,000,000 8,000,000
DOUBTFUL CBZA ESTIMATION 2,200,000 1,800,000
MERCHANDISE 10,000,000 15,000,000
ESTIMATION OF INVENTORY DEPRECIATION 300,000 500,000
SERVICES CONTRACTED IN ADVANCE 500,000 150,000
ACCOUNTS PAYABLE COMMERCIAL 9,800,000 6,000,000

Accounting accounts December 31, 2020

SALES 32,000,000
COST OF SALES 27,200,000
LOST BY DOUBTFUL CBZA 400,000
USEFULNESS IN SALE OF FIXED ASSET 100,000

56
 d) During the year 2020, among other operations, the following were carried out:
On March 25, 2020, the General Shareholders' Meeting (GSM) agreed:
i. In compliance with Article 229 of Law 26887 - Companies Law, the entiti
that at the end of the exercise they obtain financial profits, they are obligated to
to establish a LEGAL RESERVE, deducting a minimum from the profit of the period
from 10% until the Legal Reserve reaches 20% of the paid-up capital. The policy
The company is to deduct 12% of the profit for the period.
ii. Distribute dividends (profits) in cash at a rate of S/ 0.15 per share
ordinary, of which in 2020 70% was paid in cash
iii. Increase the share capital by capitalizing the balance of the results
accumulated and new cash contributions of S/1,000,000 from the owners of the
ordinary shares. The cash was received on 30/MAR/2020.
A cash loan was obtained from the Bank of Commerce for S/1,500,000.
S/800,000 was used to purchase production machinery in cash.
S/ 1,750,000 was paid in cash for remuneration.
corresponding to the expenditure for this concept in the year 2020.
Other operating expenses of the year amount to S/ 1,200,000, of which only were paid
50%.
The balance of the Services Contracted in Advance as of December 31, 2019, was S/ 480,000.
corresponding to rent paid in advance for 1 year starting on 03.01.2020 to
February 28, 2021
Bank loans of S/ 600,000 and S/ 55,000 in interest for the period were paid.
2020.
The income tax was paid in cash for S/ 850,000 of which
S/350,000 corresponds to the outstanding balance for the year 2018 and S/500,000 to
account of the year 2020.
Shares of LAMBORGHINI S.A. were purchased in cash for S/ 1,300,000
The asset sold during the year 2020 had a book value of S/ 600,000 and was
sold for S/ 700,000
As of 31/DEC/2020, I had US$200,000 with an exchange rate of US$1 = S/3.40.
exchange rate on that date of US$1 = S/3.30 The entity adjusted the difference in
change.
The net profit for the year 2020 after income tax was
S/.......???
The Income Tax rate is 29.5%.

Prepare the Statement of Changes in Equity for both periods, the Statement
Cash Flow for the year 2019, and the Income Statement.

57
 SUBSEQUENT EVENTS AFTER THE REPORTING DATE - NIC 10
CASE 24

NIC 10.3: The following terms are used in this Standard with the meanings that follow.
are specified:
The events that occurred after the period covered by the report:
They are all those events, whether favorable or unfavorable, that have occurred between the
end of the period covered by the report and the date of authorization of the financial statements for
its emission. Two types of events can be identified:
those that provide evidence of the conditions that exist at the end of the period
regarding what is reported (events that occurred after the period covered by the report that
implies adjustment); and
(b) those that indicate conditions that arose after the period being reported
(events occurring after the reported period that do not involve adjustment).
NIC 10.4: The process followed for the formulation or authorization with a view to its disclosure of the
Financial statements will vary depending on the organizational structure of the entity.
legal and statutory requirements and the procedures followed for the preparation and
finalization of the financial statements.
NIC 10.7: Events occurring after the reporting period will include all
the events up to the date when the financial statements are authorized for publication,
even if such events occur after the public announcement of the result or other
specific financial information.
NIC 10.8: An entity shall adjust the amounts recognized in its financial statements to reflect the
incidence of the events that occurred after the period reported that involve
adjustments.
NI 10.10: An entity shall not adjust the amounts recognized in its financial statements for
reflect events occurring after the reporting period that do not involve adjustments.

21. The management of an entity completed the draft of the financial statements on February 28, 2020.
financial statements for the period ending December 31, 2019. The board reviews these
financial statements on March 18, 2020, authorizing their issuance.

The entity proceeds to announce the results of the period, along with other financial information.
selected, on March 19, 2020. The financial statements are available to the
owners and other interested parties on April 1, 2020. The annual owners' meeting
approves the previous financial statements on May 15, 2020, and proceeds to register them
to the competent authority on May 17, 2020.

21.1 What is the period of subsequent events related to the financial information?
from the year 2019?

Response: from ……………………………………………… to ……………..…..……………………..

21.2 If a fire occurs in the company's warehouses on February 14, 2020,

original losses of S/100,000, how would it be reported in the financial statements of the
2019?

………………………………………………………………………………………………………..………………………….…
………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………….

CASE 25
58
 The management of an entity completed on January 26, 2020, the draft of the statements.
financial statements for the period ending December 31, 2019. The board reviews these
financial statements on February 14, 2020, authorizing their issuance.

The entity proceeds to announce the results of the period, along with other financial information.
selected, on February 19, 2020. The financial statements are made available to the
owners and other interested parties on February 21, 2020. The annual owners' meeting
approves the previous financial statements on February 27, 2020, and proceeds to
register them with the competent authority on March 1, 2020.

25.1 What is the subsequent events period related to the financial information?
from the year 2019?

From........................... to.........................................

On February 2, 2020, financial investments in equity instruments of others

companies, has suffered a sharp decline in its fair value and is not related to the
conditions of the investments at the end of the reporting period, but rather reflects
circumstances that occurred in the following period.

25.2 How would it be reported in the 2019 financial statements?

……………………………………………..…………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………….
CASE 26

An entity as of December 31, 2019, had recognized a provision (liability) for a

judicial litigation for the amount of S/500,000, however on February 15, 2020, the entity is
condemned to pay an amount of S/600,000 for this provision. The financial statements of
They were authorized to be issued on February 21, 2020.

26.1 How would it be reported in the financial statements of 2019?

……………………………………………………………………….…………………………………………………………………
……………………………………………………………..…………………………………………………………………………..
………………………………………………………………………………………………………………………………………….
………………………………………………………………………………………………………………………………………….
CASE 27

An entity as of December 31, 2019, had not recognized an impairment loss.

regarding a receivable from the contractor 'ABC' as I believe it does not exist
objective evidence of impairment, however, on February 20, 2020, the entity 'ABC'
officially declares serious financial problems that will affect the recoverable amount
from the accounts receivable for an amount of S/350,000. The financial statements were
authorized to issue on 21/FEB/2020.

27.1 How would it be reported in the financial statements of 2019?

………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………..
………………………..……………………………………………………………………………………………………………….
……………………..………………………………………………………………………………………………………………….

59