BUSINESS FACULTY

ACCOUNTING SCHOOL

ACADEMIC REPORT
ISSUE
Use of Financial Statements in financial decision making
COURSE:

FINANCE

AUTHOR:

Saldaña Manosalva, Lili Jhovanita (0000-0001-8221-3234 )

TEACHER:

Dr. Seminario Arévalo, Freddy ( 0000-0001-9900-333X )

MOYOBAMBA - PERU
(2023)

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Content
I. INTRODUCTION ...................................................................................................................3
II. DEVELOPMENT ...................................................................................................................4
III. BIBLIOGRAPHICAL REFERENCES ANNEXES .........................................................6

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I. INTRODUCTION

According to Calderón, RE (2021) Financial statements serve as the cornerstone

on which all companies base their decision making, as they show the results of
their operations, the management of their shareholders and each choice they have
made when using their resources to produce the cash they need. in making future
decisions. For this reason, it is essential that the person in charge of presenting
financial information has knowledge of accounting and has the necessary skills to
evaluate and interpret it. Financial information serves to present all the information
necessary for decision making through the elements that make up the financial
statements. Therefore, in this work we want to emphasize the importance of
preparing financial statements with data, facts and records on the Impact of the
company.

According to Cosme Garcilazo , NF (2022), it is defined as a range of options from

the most practical dependence on investment, financing and debt, according to the
definition of Horne (2018). When making a financial decision, the options available
in the financial market to finance the creation of a company are examined.
According to Salazar Ramírez, JM (2022). Financial statements and their analysis
are crucial for companies because they allow them to build a foundation in the
market. in which this contributes to the definition of internal and external strategies
for the economic management of companies, as well as how these companies
interact in a strongly competitive environment that requires continuous decision
making to achieve the desired success and profitability.

This research is theoretically significant because it will allow us to carry out an

analysis of the study variables, identifying the strengths and weaknesses of the
organization, allowing us to make better projections and, most importantly, with
certainty about the future of the company. This is because a company's
performance is largely determined by its financial statements, which help in
decision making.
Durand (2018) discusses the link between financial statement interpretation and
decision making, noting that this relationship will help corporate managers make
more informed financial, investment, and operational decisions. As a result of his

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 lack of knowledge, he concluded that some good companies do not face a high
level of competition, resulting in a delay in decision making. According to Delgado
Carrión, MC (2022)
According to Fernández Pérez, KE (2018). Companies should prioritize financial
statements when making decisions as this will increase their profitability. Please
note that to measure the profitability of an organization based on its performance
and the liquidity of its financial position, financial analysis is required. Only then will
you be able to know the current state of the company and the future prospects.

II. DEVELOPMENT
This study aims to show the value of financial statements in organizational
decision making, as well as the results and effects they can have when used
together with accurate and true information. We also intend to highlight the
importance of the interpretation and analysis of the information that is anticipated
as a result, starting with the application of fundamental accounting standards,
concepts and policies. According to Calderón, RE (2021)
Martínez (2018) predicted that the decision-making mechanism in the current
framework of financial systems, such as the SIAF, is where a particular
appointment is made between a series of expectations, allowing institutional
scenarios to be resolved. When defining decisions, we must consider the
challenges along with various procedural options and arrive at a legal definition
that is acceptable among the correct options.
The SIAF is organized into dimensions called modules according to the MEF,
among them: 10 Administrative Expense Modules, SP according to the SIAF -
MEF standard, in which public organizations register their activities, stages:
obligations, purchases and attractions. Employment Period: The confirmation
record includes the Fte.Fto output classifiers and the management of specified
objectives in a group.

The system verifies the compliance of the transactions based on the justification of
the budget limit. An accrual period is an administrative procedure that
substantiates the need for payment derived from approved and recorded
expenses, which results in the first approval of a certain authority to grant benefits

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or rights to the creditor. The extraction, known as registration of the interested
party, requires pre-installation and approval from the DGTP for its extraction. The
draw may be carried out in the same month or in a different month after the
registration of the accumulation period. According to Cosme Garcilazo , NF (2022)

Huacchilo and other people. Financial management and its effects on financial
decision-making, scientific article published in 2020. Peru, Piura. Because all
financial transactions, in the opinion of the partners, are still frequently carried out
through banks, this study is applied, non-experimental, cross-sectional, with a
population of administrative personnel and uses a correlational design.
Furthermore, they stated that there is no financial instrument that can be used to
improve these movements, which is supported by the amount of debt that the
company currently has. According to Salazar Ramírez , JM (2022)

Given that no two businesses are exactly the same, not even those that compete
and offer very similar goods or services, much less have the same economic
situation, Martínez (2020) maintains that the analysis of financial statements does
not always follow the same pattern with point and eat. Here the analyst
demonstrates his skills and must recognize that the data he uses for analysis will
never be completely reliable because he must take into account the uncertainty
inherent in the results. According to the author Delgado Carrión, MC (2022)

Due to their lack of administrative planning and refusal to use instruments such as
financial statements to calculate their profitability index, a large number of Tacna
SMEs that begin their operations in such a ruthless market present a flagrant lack
of profitability. Not all business development initiatives are the best to build a
successful company. In Peru, an article by ESAN (2019) on the evaluation forms
of Peruvian companies shows distinguishing the financial statements, which allows
the administration to evaluate the systematization of the organization and take
actions based on the results in making it one of the organization's successful and
stable businesses. According to Fernández Pérez, KE (2018).

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III. BIBLIOGRAPHICAL REFERENCES ANNEXES
Calderón, XC, Castillo, GYC and Calderón, RE (2021). The importance of financial
statements in making financial-accounting decisions. FAECO sapiens Magazine,
4(2), 82-96. https://uptv.up.ac.pa/index.php/faeco_sapiens/article/view/2179/2018_
_

Cosme Garcilazo , NF (2022). The integrated system of financial administration

and financial decisions in the Lima Sur treasury office, period 2020. Institutional
Repository - UCV. https://repositorio.ucv.edu.pe/handle/20.500.12692/77136

culquipoma Marín, AJ and Salazar Ramírez, JM (2022). The financial statements

and their impact on the decision-making of the company CEDURAVAL EIRL –
Chiclayo, 2022. Institutional Repository - UCV .
https://repositorio.ucv.edu.pe/handle/20.500.12692/115460

Delgado Carrión, MC, & Niño Falla, SG (2022). Analysis of the financial
statements and decision making of the company Leoncito SA Institutional
Repository - UCV . https://repo sitorio.ucv.edu.pe/handle/20.500.12692/116930_

Fernández Pérez, KE (2018). ANALYSIS OF FINANCIAL STATEMENTS AND

DECISION MAKING TO INCREASE PROFITABILITY IN GRUPO AGROTEC
MAQUINARIAS SAC 2016 – 2017. Institutional Repository - USS .
http://repositorio.uss.edu.pe//handle/20.500.12802/5189