Acquisition cost: is the amount of cash or cash equivalents paid for an asset or
service at the time of acquisition;
Other assets: are goods that are consumed in the different phases of operation of
the entity, are not intended to be sold, so not part of inventories; and they are
represented mainly by lower supplies
Prepayments: they are claims arising from payments made in cash and cash
equivalents in order to ensure the supply with certain benefits, services or assets to
be received in the normal course of future operations of the entity.
Initial recognition: Payments for services to be received should initially
recognized at the amount of cash or cash equivalents paid s.
subsequent recognition: Upon receipt of the service on the advance payment,
the entity shall recognize the amount accrued affecting the income statement or as
part of some other asset, as appropriate.
Impairment Where an entity determines that the advance payments and / or other
assets have lost their ability to generate future economic benefits, the amount not
recovered to be sent to the results of the period in which this happens.
Disclosure standards: An entity shall disclose in notes to the financial statements
the following information on prepaid expenses and other assets.
Validity: The provisions of this standard are effective for fiscal years beginning
from a date agreed.
accounting changes and corrections of errors: the financial statements for prior
periods presented for comparative purposes should be reclassified to prepaid
expenses and other assets, prepayments to suppliers who were not transferred the
risks and benefits to the entity and which previously they were presented as part of
the items of inventory, property, plant and equipment or intangible assets.