1. The accounting system that the political parties subject themselves to should have the following characteristics:

a) To be made up of all the registers, procedures, criteria and reports, structured on the basis of shared technical principles intended to capture, evaluate, register, classify, inform and interpret the transactions, transformations and events that, deriving from the f nancial activity, modify the f nancial situation of the political party;

b) The provisions on auditing that establish the obligations, classify the expenditure concepts of the political parties, candidates and all the obligated subjects; as well as those that determine the violations, are of strict interpretation of the rule;

c) To recognize the legal nature of the operations made by the political parties with third parties, in the terms of the civil and commercial provisions;

d) To register their budgetary and accounting operations, as well as other economic flows, in a harmonious, limited and specific manner;

e) To reflect the application of the principles, general and specific accounting rules and instruments established by the General Council of the Institute;

f) To facilitate the identification of the incomes, expenditures, assets, debts and trusts;

g) To automatically integrate the accounts with the accounting operation, including the use of the yielded cost;

h) To allow that the registers are made considering the accumulative basis for the integration of the budgetary and accounting information;

i) To reflect a coherent and organized register of every operation that generates rights and obligations deriving from the f nancial management;

j) To generate, in real time, financial statements, budgetary implementation statements and other information that assist the decision-making, the transparency, the programming based on results, the evaluation and the accountability, and

k) To facilitate the registration and control of the inventories of the movable assets and real estate.

2 . The accounting system will be displayed in a computer system which will have security features. The parties will make their accounting register online and the Institute could have unconditional access to these systems in the exercise of its monitoring and auditing powers.

3. Where applicable, the Institute will draw up preventing recommendations to political parties and candidates with a view to improve the effectiveness, eff ciency, timeliness, consistency and truthfulness of the reports set out in this Law.