Some of the terminology, e.g. “materialization” may be confusing to a non-Spanish audience. The module does not use the definitions of assets, liabilities, and equity from either the FASB Conceptual Framework or the IASB Conceptual Framework.
Concerns with Exercise 2 involve the examples used to illustrate each situation:
- Logic is not provided in feedback for why machinery is a non-current asset.
- Q4 - Raw materials purchased with long-term debt does not make sense. In this example no provision is shown for the purchase of raw materials with cash.
- Q5 - Sales of stock (inventory) for collection rights (receivables) does not include the impact on equity from selling the goods. Only the decrease in stock (inventory) is included.
- Q6 - Debt with suppliers for the purchase of raw materials does not show increase in stock (inventory) just increase in current assets. Question 5 divides current assets into three categories: cash and banks, collection rights, and stock. As a result, this example is inconsistent with the earlier presentation.
- Q7 - Profit generated does not illustrate collection rights increasing just the overall increase in current assets which is also inconsistent with sub-classification scheme used in question 5.
- Q10 - Debts of the company with personnel for salaries accrued...is awkwardly worded. The example shows current assets increasing when it should be at best a decrease in equity as a result of an expense incurred.
- Q11 - Loans repayable in 3 years is identified correctly as a non-current liability. However the example classifies them incorrectly as a current liability which is offset to current assets.