Accounting, Edition 35

Where is the Budget Headed?

1 December, 2010

By: Yaneli Cruz and Ana María Díaz

“The budget is the ruin of Corporate America. It should never have existed.”

Jack Welch, CEO of General Electric

Budgets are one of the accounting tools most widely used in the planning and control of organizations. However, there is ongoing debate as to the usefulness of the traditional budget. How can budgets be made more flexible? Who are the people who should be involved in drawing them up? What should be included and what should be left out? How often should information be revised or updated? These are just some of the questions that arise when faced with the need for financial planning systems that are able to respond to rapidly changing marketplaces.

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Accounting, Edition 34

Impact Of Adoption of International Financial Reporting Standards in Mexican Companies

2 September, 2010

By: Sandra Minaburo

Starting in 2012, public entities in Mexico mandatorily will have to submit their financial statements prepared with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standard Board (IASB), in accordance with the press bulletin PRESS BULLETIN No. 056/2008, published on November 11, 2008 by Comisión Nacional Bancaria y de Valores (National Banking and Securities Commission or CNBV as per initials in Spanish) in México.

According to the CNBV, this adoption will generate several benefits to the market and to the investing public, amongst other:

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Accounting, Edition 34

Ethics: Standards and Dwell

2 September, 2010

By: Yanira Petrides

A daily characteristic of professional accountants’ life is ethics; a commitment demanded every single day to the professional at the service of public interest. However, ethics is a permanent challenge, not only in times of crisis and scandals, but also when there is relative calm.

The word “ethics” comes from the Greek word “???? ethos” that means “habit, custom, practice”. In the introduction of the book “Ethos, destiny of man”, Juliana González explains that the Greek word “ethos” can be spelled in a different way and therefore accepts more than one meaning (González, 1986). And she continues if we write the word ethos with its first letter “? eta” instead of the letter “? epsilon”, according to González it would mean something like “dwell”, which can be read whether external – like the house in which you live – or internal – as a way of being, in essence the “character”. And it is, like a way of being how profession accountants live ethics: as a lair that gives us security, prestige, and also a way to service the public interest.

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