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What a foreign investor with a location in Colombia should not forget




The globalization of the economy has led to the elimination of import and export duties at borders and Colombia stands out in the region for attracting foreign investment, due to its strategic location, which allows it to become an export platform; furthermore, the peace process has brought stability to its economy and it is known for its skilled labor.

When operating in Colombia, enterprises face risks in cost increases; these are caused by an imperfect? understanding of the foreign exchange and tax system, besides not applying the accounting principles that govern the country correctly.

Therefore, as of January 1, 2019, for many companies, the new leasing standards of the IASB and FASB[1] require that almost all leases under the previous standard (NIC 17)[2] classified as operating be presented on that date in their financial statements as assets and liabilities; the requirements of IFRS and US GAAP are similar but only in the initial recognition, since from day two, the focus changes and this is the main difference, explain the experts at Ecovis.

IFRS 16 recognizes linear expense for the depreciation of the leased asset. As a consequence, from the perspective of the financial indicators of the result, Ebitda improves under the application of IFRS, since lease payments are now depreciation expenses that are excluded from the expenses of this indicator, which does not happen under US GAAP, whereas, as of day two, the rental expenses are linear with the same principles as when they were taken as operating leases.

Finally, the disparity in the application of the aforementioned standards leads to confusion on the transnational level, in a country which offers competitive advantages but demands preparation and knowledge of its legislation, since the penalties for errors in accounting practices can be a costly learning curve, say Ecovis? auditors.

[1] FASB: Financial Accounting Standards Board is the independent, private-sector, not-for-profit organization based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow generally accepted accounting principles (GAAP).

[2] NIC 17: International accounting standard issued by the IASB on leases and repealed by the entry into force of IFRS 16.

Das Beratungsunternehmen Ecovis unterstützt mittelständische Unternehmen. In Deutschland zählt es zu den Top 10 der Branche. Etwa 7.500 Mitarbeiterinnen und Mitarbeiter arbeiten in den mehr als 100 deutschen Büros sowie weltweit in Partnerkanzleien in über 75 Ländern. Ecovis betreut und berät Familienunternehmen, inhabergeführte Betriebe sowie Freiberufler und Privatpersonen. Um das wirtschaftliche Handeln seiner Mandanten nachhaltig zu sichern und zu fördern, bündelt Ecovis die nationale und internationale Fach- und Branchenexpertise aller Steuerberater, Wirtschaftsprüfer, Rechtsanwälte und Unternehmensberater. Jede Ecovis-Kanzlei kann auf diesen Wissenspool zurückgreifen.

Darüber hinaus steht die Ecovis Akademie für fundierte Ausbildung sowie für kontinuierliche und aktuelle Weiterbildung. All dies gewährleistet, dass die Beraterinnen und Berater ihre Mandanten vor Ort persönlich gut beraten.

www.ecovis.com





Posted by on 23. September 2019. Filed under Internet. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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