The International Financial Reporting Standards - IFRS known by its acronym in English as IFRS (International Financial Reporting Standards), they are a set of international accounting standards issued by the London-based IASB (International Accounting Standards Board); these Standards are intended to put a common denominator to accounting activity worldwide.
The Colombian State, taking into account global integration, free trade agreements and the need to actively participate in the global financial dynamics, decides to adopt International Financial Reporting Standards - IFRS, which allows standardizing financial reporting to world level, allowing its uniformity and transparency, generating a greater degree of trust and efficiency for national and foreign clients and investors.
Due to the above, the Congress of the Republic issued Law 1314 of 2009, which aims to support the internationalization of economic relations and introduce the country to global financial operations (foreign investment), which allows to boost the country's development, through the use of high quality standards regarding accounting and information assurance, thus generating confidence in the world market.
This law establishes the convergence of accounting, financial reporting and information assurance standards towards international standards, based on best practices and the rapid evolution of business.
The Technical Council of Public Accounting was designated as the entity in charge of directing the process of convergence of accounting and financial information standards and information assurance with international standards in Colombia.
The strategic direction, issued by the Technical Council of Public Accounting, proposed that accounting and financial reporting and information assurance standards should be applied differentially to three groups of financial statement preparers: Group 1, Group 2 and Group 3.
The state through the Ministry of Commerce, Industry and Tourism and the Ministry of Finance and Public Credit has regulated Law 1314 of 2009, through Decree 2784 of 2012 that establishes the technical regulatory framework applicable to entities belonging to group 1; Decree 2706 of 2012 that establishes the technical regulatory framework applicable to entities belonging to group 3 and Decree 3022 of December 2013 that establishes the technical regulatory framework applicable to entities belonging to group 2 SMEs.
The adoption of IFRS-IFRS provides an opportunity to improve the financial function in companies through greater consistency in accounting policies, achieving potential benefits of more transparency, increasing comparability and improving efficiency.
Our IFRS implementation consulting for SMEs includes:
- Our IFRS implementation consulting for SMEs includes:
- Identification of policies to review.
- Design of the structure of the new presentation of financial information.
- Definition of financial and accounting policies and procedures.
- Chart of accounts based on IFRS.
- Accompaniment in the implementation process.
- Analysis of worksheet and opening balance.
- Training for personnel in charge of the accounting department.
- Post implementation monitoring.
- Audit of financial statements.