The C Series of the Financial Reporting Standards (NIF) focuses on the standards related to specific concepts of financial statements.

Each of the NIFs in this series addresses technical and detailed aspects of how certain items should be presented in the financial statements.

Here I give you a summary of the most relevant NIFs of Series C:

1.     NIF C-1: Cash and cash equivalents

• Establishes the standards for the recognition and presentation of cash and cash equivalents, defining what is considered cash and how the equivalents should be measured.

2. NIF C-2: Investment in financial instruments

• Regulations related to financial instruments, their classification, valuation and presentation, whether financial assets or liabilities.

3.     NIF C-3: Accounts receivable

• Establishes the regulations for the recognition, valuation and presentation of accounts receivable, including estimates for expected credit losses.

4.     NIF C-4: Inventories

• It deals with the treatment of inventories, their valuation, presentation in the financial statements and cost formulas (FIFO, LIFO, average costs).

5.     NIF C-5: Advance payments

• This standard regulates the accounting treatment of payments made for services or goods that will be received in the future.

6.     NIF C-6: Property, plant and equipment

• Establishes the rules for the recognition, valuation, depreciation and presentation of tangible fixed assets.

7. NIF C-7: Investments in associates, joint ventures and other permanent investments

• Rules for the recognition and valuation of investments in other entities, such as permanent investments and joint ventures.

8. NIF C-8: Intangible assets

• It regulates the treatment of non-physical assets such as patents, trademarks, copyrights and other intangible assets, from their recognition to their amortization.

9. NIF C-9: Provisions, contingencies and commitments

• It deals with the accounting and presentation of provisions and contingencies, ensuring that potential obligations are adequately reflected in the financial statements.

10. NIF C-12: Financial instruments with characteristics of liabilities and capital

• Specific regulations on how financial instruments that have both liability and equity characteristics should be classified and presented.

11. NIF C-13: Related parties

• Establishes guidelines for the disclosure of transactions and balances with related parties, ensuring transparency in financial information.

12.NIF C-16: Impairment of financial instruments receivable

• This standard addresses the impairment of financial assets such as accounts receivable, establishing how the loss in value of these assets should be measured and recognized.

13.NIF C-19: Financial instruments payable

• Regulates the treatment of financial liabilities, their recognition and presentation in the financial statements.

14.NIF C-22: Cryptocurrencies

• Defines the rules for the recognition, valuation, presentation and disclosure of cryptocurrencies acquired or used in the operation of an entity.

These standards are key to ensuring that entities correctly reflect the different financial concepts, improving transparency and consistency in the financial information presented.

Conclusions

Individual Financial Reporting Standards (FRS) offer a number of key benefits for businesses and organisations seeking clarity and accuracy in the presentation of their financial information. Some reasons to use them include:

1. Transparency and comparability: Specific NIFs ensure that financial information is clear, reliable and comparable with other companies in the same sector, facilitating decision-making for investors, regulators and other interested parties.
2. Regulatory complianceBy following NIFs, companies comply with current legal and tax requirements, which reduces the risk of sanctions and improves their relationship with authorities and auditors.
3. Making informed decisions: Individual NIFs provide a solid structure for recording and presenting financial information, allowing the company to make strategic decisions based on accurate and timely data.
4. Better access to financingBy having financial statements prepared under the NIF, companies can demonstrate their financial strength to banks, investors and other creditors, improving their chances of obtaining financing or investments.

In short, the use of specific NIFs allows companies to operate more efficiently and reliably in the financial environment, as well as ensuring that information is clear and useful to stakeholders.