How is the performance of International Financial Reporting Standards
Author: Michelle Leonny
The International Financial Reporting Standards IFRS or IFRS, for its acronym in English, are a set of accounting rules and guidelines, with a high degree of detail, which gives a reasonable structure for financial reporting and corporate accounting.
These rules are becoming a universal accounting language to ensure that all countries speak the same financial language, homogenizing the frames of information and facilitating the interaction of markets, taking another step toward globalization.
In recent years, the countries of the European Union, Canada, Hong Kong, South Africa, Australia, Russia, Chile, Panama, Venezuela and Ecuador, among others, have adopted IFRS, directing the economy towards strengthening confidence investors, demonstrating the great interest in this issue for the world.
In Colombia, has recently assumed importance with the passage of Act 1314 of 2009 laying down the guidelines of the Government to move towards international accounting standards and auditing.
Colombia is using the same accounting framework since 1993, contradicting one of the premises of the profession, which stipulates the need for continuous updating, rather than rules, in the same accounting science.
“As the world continues to evolve in accounting, Colombian regulations remained silent and even many educational institutions still do not teach international standards, says Javier Encino, Associate Partner of PricewaterhouseCoopers.
When asked about the causes of this delay almost 20 years, one of the strongest reasons could be the dependence of the promulgation of accounting standards through legislation, with which, any changes would have done this long period was live a very delayed. The law 1314 of 2009 thought of this and defined a more efficient mechanism.
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