Commercial activities and businesses have internationalized. AS an example, a businessman having his activities within the European Union may be doing business with a Japanese or American businessman. The problem arose because the companies from different countries were presenting their accounting statements differently. In order to sort this out, the international accounting standards (IAS) were created in order to ensure "consistency of presentation of items in the financial statements", regardless of the nationality of their readers or interpreters. Since 2000, the accounting standards are being harmonized at an international level, in general, and particularly, at in terms of the European Union. Also, Spain is thinking of amending their financial regulations so all the Spanish companies would present their financial statements under an international format. This Accounting amendment shall culminate in January 2008 with the introduction of the new General Chart of Accounts.

Therefore, the IAS/ IASB (International Accounting Standards Board) seem to be a consequence of the International Commerce and the Economic Globalization in which includes the activities of Imports and Exports &Imports of goods and services.

The information contained in the financial statements concerns to:

The government, for making its decisions, considering the profits, growth and development of the companies during a certain period.

The owners, so they can know the evolution of their business and the company’s profitability.

The creditors, so they can know a company’s liquidity and the collection guarantees.

The Inland Revenue, in order to determine if taxes and contributions have been properly made.

New in accounting since the 1st of January 2008:

  1. t changes significantly regarding the former accounting plan from 1990.

  2. The purchase price will be no longer mentioned. Valuation criteria will be historical cost, fair value, etc...

  3. Everything will be stated by current value.

  4. Models (format) of Balance, Income Statement and Report will change. A vertical format will be used from now on.

  5. There will be new accounting terms to which we will have to become familiar. This is a new accounting language.

  6. Sector adaptation does no longer exist in this new plan. The former one had, for example, a special accounting plan for construction companies.

  7. It will imply certain significant fiscal changes.

  8. New items will be added and other will be eliminated, e.g. the "start-up expenses" and "Deferred income".

  9. At the end of 2008, comparison between accounts for 2007 and 2007 will be no compulsory as these will be presented under different formats.

  10. Transition or conversion balance will be the balance to be opened on the 1st of January 2008.  

  11. New accounting items will be introduced and some of the former ones will disappear, such as Extraordinary results, Start-up expenses, Deferred income.

  12. The main change is that more information will be required by investors and some technical questions will also change, so these will be accounted differently, as the case of leasing.

  13. The annual Report to be performed by the companies shall contain more explanatory paragraphs.

  14. The financial mathematics shall be included to be applied to the IAS/IASB .

  15. Two new accounting groups, group 8 and 9 (it used to be only 7 groups).

  16. Good Will modification; it will be no longer amortized.