Colombian Government confirms deferral of IFRS adoption
04 Jan 2013
In September 2012, the Colombian Government announced that it would defer mandatory IFRS application to 2015 in reaction to many submissions received that point at difficulties regarding the implementation of IFRSs. The deferral was now confirmed by publishing corresponding decrees in the Official Journal.
IFRS adoption in Colombia is going to take place in three groups:
- Group 1: Publicly traded entities, public interest entities and large companies that a) are branches of parent companies that report under IFRS, b) parent companies of branches that report under IFRS and c) companies exporting or importing over 50% of their sales or purchases will follow full IFRSs.
- Group 2: Large and medium companies other than those included in Group 1 will apply the IFRS for SMEs.
- Group 3: Micro entities will apply standards especially developed for their needs.
The announced deferral of mandatory IFRS application for Group 1 and of mandatory application of the especially developed standards for Group 3 to 2015 has been confirmed by the publication of the following decrees (links to the Colombian Official Journal (Diario Oficial))
- Decreto No. 2784 del 28 de diciembre de 2012, por el cual se reglamente la Ley 1314 de 2009 sobre el marco técnico normativo para los preparadores de información financiera que conforman el Grupo 1: aplicación de las NIIF plenas (Decree regarding Group 1, please refer to page 1 of the document);
- Decreto No. 2796 del 28 de diciembre de 2012 por el cual se reglamenta la Ley 1314 de 2009 sobre el marco técnico normativo de información financiera para las microempresas: Grupo 3 (Decree regarding Group 3, please refer to page 45 of the document).
A confirmation of the deferral of mandatory application of the IFRS for SMEs by Group 2 to 2016 is still outstanding.
