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Amortization of deferred charges. Value to be recognized during the periods in which it is expected to receive the benefits of the costs and expenses incurred, in accordance with the feasibility studies for their recovery, the estimated periods of consumption of the goods or services or the validity of the respective contracts , as appropriate.

Amortization of expenses paid in advance. Registered value based on consumption during the contractually agreed period for the services received, which must correspond to the defined prepayment period.

Amortization of intangibles. Accumulated value for the creation or acquisition of intangibles, is amortized during the period that corresponds to the recovery of the investment in which it was incurred, or to the period in which the expected benefits will be obtained due to the effects of the exploitation of the intangible or the duration of the protection legal or contractual.

Cost benefit analysis. Method used that quantifies the functional relationships between the most important aspects of the benefits of an entity, with identification of its structure.

Balances Aging Analysis. The elaboration of a relation that classifies the debts of the clients according to the number of days that each account has without having paid.

Financial statement analysis. Activity carried out to determine variations in the balances of debtor or creditor accounts over time, for a correct interpretation of the information contained therein.

Financial analysis. Set of principles, procedures and techniques used to transform the information reflected in the accounting statements and reports, into processed information to be used in making economic decisions.

Horizontal analysis. Examination of the accounting statements and reports, belonging to various accounting periods, in order to determine variations and trends in the accounts.

Vertical analysis. Examination of the accounting statements and reports, belonging to the same accounting period in order to determine important relationships between the different accounts.

Advance. Amount paid or received for a good that has not been delivered, or for a service not provided.

Calendar year. The year that begins on January 1 and ends on December 31.

Business Calendar Year. Period of 12 consecutive months that constitutes the accounting cycle of a business. Typically, the year ends when business activities are at their lowest.

Years of useful life of depreciable assets. In all cases, the useful life of a depreciable asset must be defined, relative to the expected service of the asset.

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