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NIFBdM A-3 USER NEEDS AND GOALS OF THE STATES FINANCIAL - Coggle Diagram
NIFBdM A-3
USER NEEDS AND GOALS OF THE STATES FINANCIAL
OBJECTIVE
Identify the needs of users and establish, based on them, the objectives of the Bank's financial statements, as well as their characteristics and limitations.
DEFINITION OF TERMS
The following terms are used in this NIFBdM with the meanings specified:
The bank.- Banco de México, is a person of public law with an autonomous nature, not for profit as defined in NIFBdM A-1, Structure of the NIFBdM.
General user.- It is any present or potential entity interested in the Bank's financial information.
USER NEEDS
Financial information is essential for decision-making by the general user and for understanding the economic activities carried out by the Bank.
The general user of the Bank's financial information can be significantly classified into the following groups:
a) Members of the Governing Board and Bank officials.- They are responsible for ensuring that the Bank fulfills its objectives, functions
and the direction of its operational activities;
b) Internal or external supervisory and surveillance bodies.They are responsible for reviewing and evaluating the Bank's administration, within the scope of their respective competencies;
c) International Financial Organizations.- are the international financial cooperation organizations and central banks of other countries;
d) Federal Government.- public power through which national l sovereignty is exercised and the United Mexican States is legally represented;
e) Account holders.- are the entities that maintain deposits in the Bank;
f) Government entitiestwo.- They are the bodies established by specificlegislation, which determines its objectives, its scope of action and its limitations, such as the SAT, IMSS, INEGI, among others;
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FINANCIAL STATEMENTS
Financial statements are the fundamental manifestation of financial information; They are the structured representation of the Bank's financial situation and development on a specific date or for a defined period.
The financial statements also show the results obtained by the Bank, therefore, to satisfy this objective, they must provide information on the evolution
a) Assets
b) Liabilities
c) Stockholders' equity
d) Income and costs or expenses
e) Changes in stockholders' equity.
This information, associated with that provided in the notes to the financial statements, helps the general user to understand the nature of the economic activities carried out by the Bank and the repercussions on its financial structure.
OBJECTIVES OF THE FINANCIAL STATEMENTS
The purpose of the Bank's financial statements is to report on its financial
situation at a certain date, its results, as well as changes in its stockholders' equity, in a certain period, in such a way that the information contained therein
is useful for taking decisions.
Financial statements should be useful for:
a) Decision-making by the members of the Governing Board and Bank
officials
c) Know the resources available to the Bank to deal with temporary
imbalances in the balance of payments;
d) Know the effects that the instrumentation of monetary and exchange
policy causes on the Bank's financial structure; Y
The information on the Bank's financial situation about the management of the
economic resources it controls, allows the general user to analyze the evolution ofits resources and the effects of the implementation of the monetary and exchang.
b) Carry out the review functions by the oversight bodies;
BASIC FINANCIAL STATEMENTS
The basic financial statements of the Bank that respond to the common needs of the general user and the objectives of financial statements are:
a) The balance sheet3, that shows information regarding the Bank's assets, liabilities and stockholders' equity as of a specified date;
b) The statement of comprehensive income (presented in one or two parts, as established by NIFBdM B-3, Statement of comprehensive income), that shows the information related to the income, costs and expenses of the period and therefore
to the result of the exercise;
c) The statement of changes in stockholders' equity, which shows the variations in capital and its reserves during a period.
Although for most entities the cash flow statement is a basic financial
statement, for the general user of the Bank's financial information it does not generate useful and / or applicable information, considering the nature of a Central Bank; for this reason, it is not a basic financial statement.
The notes to the basic financial statements are an integral part thereof and their purpose is to complement the basic financial statements with relevant information. Basic financial statements tend progressively to increase their
scope of action, aiming to satisfy the needs of the general user more widely.
QUALITATIVE CHARACTERISTICS OF THE BASIC FINANCIAL
STATEMENTS
The basic financial statements must meet certain qualitative characteristics to be useful in making decisions for the general user about finacial information and for understanding the economic activities ,carried out by the bank.
In order for the bacic financial staments to have these charecteristics they must be prepared in accordance with the NIFBdm,in addition ,the general user must take into account certain limitations in its use.
LIMITATIONS ON THE USE OF BASIC FINANCIAL STATEMENTS
Although the objectives of the basic financial statements and financial information are the same,certain useful data go beyond the content of the financial statements, so they can only be provided by means of different reports
Therefore, the objectives of basic financial statements are affected not only by the environment in which the Bank operates, but also by the characteristics and limitations of the type of information that financial statements can provide.
The general user of the Bank's basic financial statements should bear in mind the following limitations thereof:
A) Internal transformations, transactions and other events that affect the Bank economically are recognized in accordance with the particular NIFBdM that can be applied with different alternatives, which may affect their comparability;
Therefore, the basic financial statements do not recognize other essential elements of the Bank such as the fulfillment of its objectives, human resources or intellectual capital, the credibility it enjoys.
c) They are based on various aspects in estimates and judgments that are prepared considering the different cuts in accounting periods, which is why they do not pretend to be exact
B) The basic financial statements, especially the balance sheet, present the book value of the Bank's resources and obligations, reliably quantifiable based on the NIFBdM and do not pretend:
i. present the fair value of the Bank as a whole;
ii. publicize the growth of the Bank.
VALIDITY
The provisions contained in this NIFBdM come into force as of the fiscal year beginning on January 1, 2018 and render the NIFBdMA-3 without effect, Userneeds and objectives of financial statements, which was established by the Bank on January 1, 2014.