The IFRS and accounting material harmonization of the inventories of colombian non-financial listed companies

Authors

DOI:

https://doi.org/10.17981/econcuc.41.2.2020.Econ.1

Keywords:

Listed companies, Financial information, IFRS, Material harmonization, Inventories, Herfindahl index

Abstract

Inventories are a strategic item in the development of the corporate purpose of companies that are mainly engaged in manufacturing and specific products. So then, this investigation is a contribution to the literature on the effects of the Colombian convergence towards IFRS. It was analyzed the material harmonization of practices on inventories accounting treatment for non-financial contributing companies, based on the study of their financial statements and the estimation of a Herfindahl index to measure the coincidence in the choice of the cost calculation formula. When comparing the previous period (2011 and 2013) with the application of IFRS (2015 and 2017) it was found that there is an increase in disclosures about accounting policies and the initial recognition of these assets, but there are still quite a few gaps and aspects such as the subsequent measurement, net realizable value and impairment. Regarding the disclosure of information regarding inventory impairment losses, it is concluded that there is a substantial increase between the previous period and the period of application.

Downloads

Download data is not yet available.

Author Biographies

Carlos Orlando Rico Bonilla, University Santo Tomas

He is a Public Accountant and Master in Accounting and Finance from the National University of Colombia. Full Time Professor at the Santo Tomás University.

Miguel Ángel Laverde Sarmiento, University Santo Tomas

He is a Public Accountant and Master in Economic Sciences from the Santo Tomás University. Full-time professor at the Santo Tomas University.

Blanca Myrian Franco Navarrete, University Santo Tomas

She is a Public Accountant; Specialist in Tax Management and Administration from the Externado de Colombia University; Candidate for Master in Taxation from the Central University of Colombia. Full-time teacher at the Santo Tomás University.

Luz Dary Montoya Ocampo, University Santo Tomas

She is a Public Accountant, Specialist in Tax Management and Administration from the Externado de Colombia University, Full-time Professor at the Santo Tomas University.

References

Archer, S., Delvaille, P. & McLeay, S. (1995). The measurement of harmonisation and the comparability of financial statement Items: within-country and betweencountry effects. Accounting and Business Research, 25(98), 67–80. https://doi.org/10.1080/00014788.1995.9729930

Archibold, W., Aguilera, L. y Escobar, A. (2017). Revisoría fiscal y sostenibilidad empresarial en Colombia. Económicas CUC, 38(2), 77–88. https://doi.org/10.17981/econcuc.38.2.2017.06

Bohórquez, N. (2015). Implementación de norma internacional de inventarios en Colombia. Innovar, 25(57), 79–92. http://dx.doi.org/10.15446/innovar.v25n57.50352

Bolsa de Valores de Colombia. (2018). Listado de Emisores. Bogotá, D.C.: Bolsa de Valores de Colombia. Recuperado 01/03/2018 de https://www.bvc.com.co/pps/tibco/portalbvc/Home/Empresas/Listado+de+Emisores

Callao, S., Jarne, J. & Laínez, J. (2007). Adoption of IFRS in Spain: Effect on the comparability and relevance of financial reporting. Journal of International Accounting, Auditing and Taxation, 16(2), 148–178. https://doi.org/10.1016/j.intaccaudtax.2007.06.002

Cantillo, J. y Rivero, L. (2019). Esquema de análisis de la Calidad de la información Contable. Económicas CUC, 40(1), 76–90. https://doi.org/10.17981/econcuc.40.1.2019.05

Cañibano, L. & Mora, A. (2000). Evaluating the statistical significance of “de facto” accounting harmonization: A study of european global players. European Accountig Review, 9(3), 349–370. https://doi.org/10.1080/09638180020017113

Cascino, S. & Gassen, S. (2015) What drives the comparability effect of mandatory IFRS adoption? Review of Accounting Studies, 20, 242–282. https://doi.org/10.1007/s11142-014-9296-5

Católico, D., Urbina, J. y Gutiérrez, J. (2019). La incidencia de las normas internacionales de información financiera sobre la revelación de la información contable en empresas colombianas. Apuntes contables, 23, 85–105. https://doi.org/10.18601/16577175.n23.06

Chumaceiro, A. y Hernández, J. (2012). La legislación tributaria venezolana como promotora de la responsabilidad social empresarial. Revista OIKOS, 16(33), 53–68. https://doi.org/10.29344/07184670.33.1041

Chung, H. & Park, S. (2017). Voluntary adoption of the IFRS and industry-level comparability: evidence from Korean unlisted firms. Emerging Markets Finance and Trade, 53(7), 1654–1666. https://doi.org/10.1080/1540496X.2016.1247688

Daraghma, Z. (2018). Expectation gap in appliying the IAS 2 [inventories]: evidence from Palestine. Academy of Accounting and Financial Studies Journal, 22(2), 1-16.

Dhaliwal, D., He, W., Li, Y. & Pereira, R. (2019). Accounting standards harmonization and financial integration. Contemporary Accounting Research, 36(4), 2437–2466. https://doi.org/10.1111/1911-3846.12495

Duque, M. y Osorio, J. (2013). ¿El proceso de convergencia excluye la contabilidad de costos. Cuadernos de Contabilidad, 14(36), 1121–1146. Disponible en https://revistas.javeriana.edu.co/index.php/cuacont/article/view/7915

Fontes, A., Rodrigues, L. & Craig, R. (2005). Measuring convergence of National Accounting Standards with International Financial Reporting Standards. Accounting Forum, 29(4), 415–436. https://doi.org/10.1016/j.accfor.2005.05.001

Giner, B. y Mora, A. (2001). El proceso de armonización contable en Europa: Análisis de la relación entre la investigación contable y la evolución de la realidad económica. Revista Española de Financiación y Contabilidad, 30(107), 103–128. Disponible en http://www.aeca.es/old/refc_1972-2013/2001/107-4.pdf

Gómez, O., De la Hoz, A. y De la Hoz, B. (2010). Armonización de las NIC/NIIF en las prácticas contables de entes emisores no financieros que cotizan en la Bolsa de Valores de Caracas, Venezuela. Contaduría y Administración, 233, 149–175.

Gross, C. & Perotti, P. (2017). Output-based measurement of accounting comparability: A survey of empirical proxies. Journal of Accounting Literature, 39, 1–22. http://dx.doi.org/10.1016/j.acclit.2017.09.002

IASB. (2018). Marco conceptual para la presentación de informes financieros. Bogotá, D.C.: Consejo Técnico de la Contaduría Pública.

IASB. (2017). Normas Internacionales de Información Financiera. Londres: International Accounting Standards Board.

Kim, R., Kim, S. & Musa, P. (2018). When does comparability better enhance relevance? policy implications from empirical evidence. Journal of Accounting and Public Policy, 37(5), 436–457. https://doi.org/10.1016/j.jaccpubpol.2018.09.006

Krisement, V. (1997). An approach for measuring the degree of comparability of financial accounting information. The European Accounting Review, 6(3), 465–485. https://doi.org/10.1080/713764728

Lemes, S. & Santos, L. (2019). Do comparable accounting choices produce comparable net profit and equity? Integrating the Gray´s and Herfindahl H indices in measuring the comparability of Brazilian companies. International Journal of Accounting, Auditing and Performance Evaluation, 15(4), 334–354. https://doi.org/10.1504/IJAAPE.2019.106414

McLeay, S., Neal, D. & Tollington, T. (1999). International standarisation and harmonisation: A new measurement technique. Journal of International Financial Management and Accounting, 10(1), 42–7.

Mita, A., Utama, S., Fitriany, F. & Wulandari, E. (2018). The adoption of IFRS, comparability of financial statements and foreing investors’ ownership. Asian Review Accounting, 26(3), 391–411. https://doi.org/10.1108/ARA-04-2017-0064

Morris, R., & Parker, R. (1998). International harmony measures of accounting policy: comparative statististical properties. Accounting and Business Research, 29(1), 73–86. https://doi.org/10.1080/00014788.1998.9729567

Mustata, R. & Matis, D. (2010). Systems for material harmonization measurement within the changing global accounting environment: a review. Journal of Organisational trasnformation & Social Change, 7(1), 47–87. https://doi.org/10.1386/jots.7.1.47₁

Pierce, A. & Weetman, P. (2002). Measurement of de facto harmonisation: implications of non-disclosure for research planning and interpretation. Accounting and Business Research, 32(4), 259–273. https://doi.org/10.1080/00014788.2002.9728974

Rahman, A., Perera, H. & Ganeshanandam, S. (1996). Measurement of formal harmonisation in accounting: An exploratory study. Accounting and Business Research, 24(4), 325–339.

República de Colombia. Congreso de la República. (julio 13 de 2009). Por la cual se regulan los principios y normas de contabilidad e información financiera y de aseguramiento de información aceptados en Colombia, se señalan las autoridades competentes, el procedimiento para su expedición y se determinan las entidades responsables de vigilar su cumplimiento. [Ley 1314]. Diario Oficial No. 47.409. Disponible en http://www.secretariasenado.gov.co/senado/basedoc/ley_1314_2009.html

República de Colombia. Contaduría General de la Nación. (28 de octubre de 2015). Por la cual se incorpora en el Régimen de Contabilidad Pública, el marco normativo aplicable a entidades de gobierno y se dictan otras disposiciones. [Resolución 533]. Diario Oficial No. 49.808.

República de Colombia. Ministerio de Comercio, Industria y Turismo. (2012). Por el cual se reglamenta la Ley 1314 de 2009 sobre el marco técnico normativo para los preparadores de información financiera que conforman el Grupo 1. [Decreto 2784]. Diario Oficial No. 48.658.

República de Colombia. Presidencia de la República. (1993). Por el cual se reglamenta la contabilidad en general y se expiden los principios o normas de contabilidad generalmente aceptados en Colombia. [Decreto 2649]. Diario Oficial No. 41.156.

Rico, C. y Díaz, M. (2017). ¿Convergencia de la regulación contable colombiana para las entidades de gobierno con las International Public Sector Accounting Standards (IPSAS)? Una medición de la armonización formal. Contabilidad y Negocios, 12(24), 61–83. https://doi.org/10.18800/contabilidad.201702.004

Rico, C., Montoya, L., Franco, B. y Laverde, M. (2020). La comparabilidad de la información financiera en Colombia tras su convergencia con los ifrs. El caso de las propiedades, planta y equipo de las empresas cotizantes. Innovar, 30(76), 91–104. https://doi.org/10.15446/innovar.v30n76.85215

Roncallo, R. (2019). Facturación electrónica en Colombia: Una reflexión de sus efectos en el sector salud. Económicas CUC, 40(1), 27–46. https://doi.org/10.17981/econcuc.40.1.2019.02

Ross, J., Shi, L. & Xie, H. (2019). The determinants of accounting comparability around the world. Asian Review of Accounting, 28(1), 69–88. https://doi.org/10.1108/ARA-04-2019-0087

Soto, B., Quiros, J. y Mesa, G. (2013). Análisis comparativo del tratamiento contable y financiero de los inventarios entre NIC 2 plena, NIIF pymes sección 13 y Decreto 2706 capítulo 8. Cuadernos de Contabilidad, 14(36), 903–941. Disponible en https://revistas.javeriana.edu.co/index.php/cuacont/article/view/7908

Souza, F. & Lemes, S. (2016). Comparability of accounting choices in subsequent measurement of fixed assets, intangible assets, and investment propety in South American companies. Revista Contabilidade & Finanças, 27(71), 169– 184. http://dx.doi.org/10.1590/1808-057x201501480

Tay, J. & Parker, R. (1990). Measuring international harmonization and standardization. Abacus, 26(1), 71–88. https://doi.org/10.1111/j.1467-6281.1990.tb00233.x

Urdaneta, A., Pérez, M. y Acurero, M. (2018). Enfoque de la política fiscal en Venezuela en el período 2000-2016. Económicas CUC, 39(2), 95–108. https://doi.org/10.17981/econcuc.39.2.2018.06

Van der Tas, L. (1992). Evidence of EC financial reporting practice harmonization. The European Accounting Review, 1(1), 69–104. https://doi.org/10.1080/09638189200000004

Van der Tas, L. (1988). Measuring harmonisation of financial reporting practice. Accounting and Business Research, 18(70), 157–169. https://doi.org/10.1080/00014788.1988.9729361

Young, S. & Zeng, Y. (2015) Accounting comparability and the accuracy of peerbased valuation models. The Accounting Review, 90(6), 2571–2601. https://doi.org/10.2308/accr-51053

Downloads

Published

2020-04-02

How to Cite

Rico Bonilla, C. O., Laverde Sarmiento, M. Ángel, Franco Navarrete, B. M., & Montoya Ocampo, L. D. (2020). The IFRS and accounting material harmonization of the inventories of colombian non-financial listed companies. ECONÓMICAS CUC, 41(2), 149–168. https://doi.org/10.17981/econcuc.41.2.2020.Econ.1

Issue

Vol. 41 No. 2 (2020)

Section

Articles: Economy and Finance

License

Copyright (c) 2020 Carlos Orlando Rico Bonilla, Miguel Ángel Laverde Sarmiento, Blanca Myrian Franco Navarrete, Luz Dary Montoya Ocampo

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

You are free to:

  1. Share — copy and redistribute the material in any medium or format
  2. The licensor cannot revoke these freedoms as long as you follow the license terms.

Under the following terms:

  1. Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
  2. NonCommercial — You may not use the material for commercial purposes .
  3. NoDerivatives — If you remix, transform, or build upon the material, you may not distribute the modified material.
  4. No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.