Main Differences Tax under IFRS Framework in Colombia

  • Martha Cecilia Álvarez Osorio University of Antioquía
  • Lina María Muñoz Osorio University of Antioquía
  • Diana Sirley Tabares Higuita University of Antioquía
  • Nora Elvira Hernández Montoya University of Antioquía
Keywords: IFRS, COLGAAP, deferred tax, differences

Abstract

With the implementation of the International Financial Reporting Standards (IFRS), the product of the convergence process towards international standards in Colombia, differences between the accounting and financial information and the tax base or fiscal information, as it is known, must be presented. The consequences of said differences will be reflected in the deferred tax and in a new approach to the presentation of financial and accounting information for decision-making within companies in the country, which reasonably reflects the economic situation to the Federal Government. Through this bibliographic-type research, it can be concluded that, during the period of transition in the process of implementing the IFRS in Colombia, several systems of information must be managed at the same time, one under the Generally Accepted Accounting Principles in Colombia (COLGAAP, according to its initials in Spanish), another under the IFRS, and a final system according to the legal parameters of the Tax Statute. Once the implementation of the IFRS begins, at least the latter two will be required to be kept, which will result in an increase in the differences between them. It will thus be necessary to explain the evolution of the business and the changes in figures, as well as their effects on the applicable measurements and policies.

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Author Biographies

Martha Cecilia Álvarez Osorio, University of Antioquía

Professor and researcher in the Department of Accounting Sciences at the College of Economic Sciences of the University of Antioquía. Colombia.

Lina María Muñoz Osorio, University of Antioquía

Professor and researcher in the Department of Accounting Sciences at the College of Economic Sciences of the University of Antioquía. Colombia.

Diana Sirley Tabares Higuita, University of Antioquía

Professor and researcher in the Department of Accounting Sciences at the College of Economic Sciences of the University of Antioquía. Colombia.

Nora Elvira Hernández Montoya, University of Antioquía

Researcher in training at the University of Antioquía. Colombia.

Published
2017-12-31
How to Cite
Álvarez Osorio, M. C., Muñoz Osorio, L. M., Tabares Higuita, D. S., & Hernández Montoya, N. E. (2017). Main Differences Tax under IFRS Framework in Colombia. Harvard Deusto Business Research, 6(3), 153-163. https://doi.org/10.3926/hdbr.136
Section
Articles