What is IFRS?
International Financial Reporting Standards (IFRS) is an internationally accepted reporting standard for registering financial transactions & reporting.
Why is it important?
Colombia has fully adopted the IFRS guidelines and they are now in full effect for all Colombian companies, meaning that you need to ensure that your accountants are registering all transactions according to both IFRS and ColGAAP
How does this affect you?
Companies which have already been identified by SuperSociedades (the Colombian Accounting Authority) will have to provide all reports according to IFRS. Companies also have to provide statements to DIAN (the local taxes authority) according to ColGAAP for tax declaration purposes. Failure to provide the statements in the correct format will likely result in fines and/or sanctions.
What do you have to do if you’re required to report to SuperSociedades?
Existing companies need to undertake a transition process, which depending on the size and complexity of the company accounts, may take between 2 and 6 months. New companies need to ensure that their accountants are IFRS qualified and competent in its application.