The Three Lens Theory: A Reliable Assessment of Activity?

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Financial statements are a document that reflects the company's processes. They contain a compilation of information about the company's assets and its sources of financing (financial balance sheet and statement philippine cellphone number codeof changes in equity), the economic benefits obtained by the company during the reporting period (profit and loss account) and the state and movement of the treasury during the period (statement of cash flows). In addition to these elements, the complete financial statements also contain notes, where the figures contained in the aforementioned sections are explained.

The structure of financial statements allows the company to be evaluated from three points of view, or as Prof.
J. Ostaszewski, to look at them through "an eyepiece made up of three lenses."



The three-lens theory involves observing a company from three aspects:

economic,
Financial,
property.



Each of the lenses individually reveals a certain piece of knowledge about the company, but only by looking through all of them can a complete and reliable assessment be made, which is why they are increasingly used to assess a company's situation.

In small companies whose financial statements are not subject to mandatory audit by auditors, the report may be limited only to the balance sheet, the profit and loss account and the notes (
Accounting Law of 29 September 2004, as amended).