The basis for reference in the process of managing an entity’s economic and financial
activity is the information provided by financial statements. Although today there are multiple
sources of information, the financial-accounting information continues to be the main way of
reflecting the economic and financial activity and the results obtained by entities, both private and
public. As a result of the uncertainties that are inevitable in the activities of public institutions, some
of the component elements of financial statements are either probable or can’t be accurately
determined, but only estimated, as in the case of contingent/probable assets and liabilities.