The Economic Entity (basic postulate) refers to an identifiable unit that carries out economic activities, consisting of combinations of human, financial and material resources.
The personality of the economic entity is independent of its shareholders, owners or sponsors; the economic entity may be a natural person or a legal entity.
Practical example of the “economic entity” postulate
Description: “Sabor Mexicano” is a restaurant that offers traditional Mexican food. It is a corporation (SA) registered in Mexico, with three partners who invested capital to establish the business. The restaurant employs 15 people, including chefs, waiters, and administrative staff.
Activities:
- Purchase of supplies such as fresh ingredients and beverages.
- Sale of food and drinks to customers.
- Payment of payroll to employees.
- Maintenance and repair of kitchen equipment.
- Promoting the restaurant through advertising.
Key Aspects:
- Human Resources: The employees who work in the restaurant.
- Financial Resources: Initial capital provided by partners, profits generated by operations, and bank loans obtained for expansion.
- Material Resources: Ingredients, kitchen equipment, restaurant furniture and the rented premises.
Identification as an Economic Entity:
- Independence: Although the partners have other investments, “Sabor Mexicano” is an independent economic entity with its own resources, management and operations.
- Purpose: Its objective is to generate profits through the sale of food and beverages.
- Common Control: The restaurant's management is controlled by a board of directors that makes decisions about the business's operations and strategy.
- Financial Information: «Sabor Mexicano» prepares its financial statements, which include a balance sheet, income statement and cash flow statement, which are used by partners, banks and other interested parties to evaluate the financial health of the business.
Conclusion:
"Mexican Flavor" qualifies as a Economic Entity According to the NIF because it is an identifiable unit that carries out economic activities, has resources that it manages independently, and generates financial information useful for its users' decision-making.
0 comentarios