What will be the result of IFRS Group III in Colombia?
For many it is not a secret the impact on small and/or micro businesses of the implementation of the International Standard (IFRS), now how reasonable would it be to ask the neighborhood pharmacist (Group III) to implement it.
It turns out that this issue has created a utopia of the true impact of group III (Small Businesses), and I remember in a certain chamber of commerce of a certain town that we are not going to mention, in which small merchants were required to renew their commercial registration under this criterion on the IFRS, we do not want to enter into controversy, but one day they may request financial reports under these international standards, but would it be important for a small business to do so...?
According to the latest DANE statistics, only 51% of companies in Colombia belong to group II and I. This means that 95% of companies are small or micro-enterprises. However, the IFRS in force until 2024 can be seen in the following box.
It turns out that although financial statements from 2015 onwards must be presented under these specific representation criteria, financial institutions could claim that they do not meet the minimum reporting standards under IFRS, in the case where an independent or merchant were to make a loan, but this does not mean that it would be something radical in the management of the small business, since it can choose to manage its records according to its needs.
Although when carrying out the tax reconciliation in which the tax entity requires the IFRS information to be converted to the tax format of the current period, it would be understood that the tax administration feels, to a greater or lesser extent, the use of these standards for tax purposes.
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