Implementation of IFRS

Our purpose is to participate in the process of the conversion of financial statements prepared under Colombian regulations to IFRS, understanding that the implementation of these rules is required by Colombian legislation, which determined that companies will cease to apply local rules and will start to provide financial information in compliance with international regulations.

As from the enactment of Act 1314 of 2009, companies in Colombia of all sizes and sectors must commence a process for the implementation of the international financial accounting regulation known as the International Financial Reporting Standards (IFRS), which corresponds to a group of standards and interpretations issued by global regulators on this matter, such as the International Accounting Standard Board (IASB).

Objective of the implementation of IFRS

Supporting clients in the obligatory preparation of the Opening Statement of Financial Position and the guidelines facilitating the transition to International Financial Reporting Standards for SMEs, in accordance with regulatory guidelines currently in force, according to the requirements and information available on the part of the company.

Our Understanding of the Process

Phase 0 - Opening: Establishing those responsible and a monitoring committee.

Phase 1 – Diagnosis and impact: A conceptual evaluation should be prepared of the impact of the conversion on the company, given that this impact should not be viewed exclusively from an accounting perspective, but within the context of the organisation. Other Impacts:

  • Review of the computer systems and internal reporting systems
  • Review of the management systems
  • Review of whether any client agreements have been amended, given that it is likely that new ones will be required
  • Updating of the Policies and Procedures
  • A real possibility of comparing with the competition
  • Real effort not only of Administration and Control officers, but also among other areas of HR, Legal and Computing

Phase 2 - Preparation of the new accounting policies: This commences once the diagnosis stage has concluded, and it is with the result of the latter that the Policies and Procedures are redefined.

Phase 3 -  Adoption for the first time: The Opening Statement is the commencement or starting point of the process for transforming into IFRS. This initial report requires an activity that has its own momentum, since the definitive information to be “adjusted to the IFRS” may be subject to adjustments and amendments before the end of the period on 31 December and the issuance of the approved Financial Statements corresponding to the year prior to the transition period.

Differentiating factors are the key to our success. 

  • Phase 4 -  Support in the parameterisation of the software, report defining the IFRS accounting plan, parallel accounts IFRS Vs 2649, list of software supplier requirements
  • Phase 5 - Support in the issuance of the first financial statements under IFRS
  • The reconciliation which must be carried out as at December 2015 according to the regulation.
  • Our consultants and trainers, apart from experience in implement IFRS, have experience in university lecturing at prestigious universities the country, such as: Universidad Javeriana, Universidad del Rosario, Externado de Colombia, among others.
  • We carry out knowledge transfer through practical exercises for the drafting, interpretation and analysis of the accounting policies. 
  • We have carried out more than 130 implementations. Draft policies will be written 100% by Auren and revised, pre-approved and approved by the directors of the companies in monitoring committees.