Abstract

VELEZ-PAREJA, Ignacio. Proyección de Estados Financieros sin Cuentas de Cuadre (Plugs). Escr. contab. adm. [online]. 2010, vol.1, n.1, pp. 53-83. ISSN 1853-2055.

Typical textbooks on corporate finance and forecasting and budgeting recommend "closing" and matching the financial statements using what is known as a plug. A plug is a formula to match the Balance Sheet using differences in such a way that the accounting equation holds. This is a very simple way to do it but it involves the risk of miscalculation in certain accounts, even if the "matching" indicates that everything is correct because the balance matches. In this paper, we explain how a plug works and what its disadvantages are. We also present a useful example for building consistent financial statements, which illustrates how to link cells in a spreadsheet. By means of this example we show that it is possible to build financial statements without plugs.

Keywords : Forecasting financial statements; Plugs; Planning and control; Unbalancing problem.