Accounting Treatment Of The Financial Incomes And Expenses

The possibility of appearance of temporarily available capital determines a number of economic operations of placing them, operations that give content in business operations. The financial result, used as a measure of performance or as a reference for other indicators is presented using two types of structures: expenditure and revenues. The definitions of revenues and expenditure capture their essential characteristics, but they must complete by the criteria that must be met in order to be recognized in the profit or loss account. Revenues constitutes increases in economic benefits during the accounting period in the form of inflows or increases in assets or decreases in liabilities, which is reflected in increases in equity other than those resulting from contributions by investors. Financial expenses comprise in their structure the receivables related to equity losses, expenses on disposal of financial investments, unfavorable foreign exchange differences, interest on the current financial year, discounts to customers, receivables from financial losses.