- Journal menu
ADOPTION OF IFRS IN ECUADOR AND COLOMBIA 2010-2016Download This Article
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB), have been adopted by a large number of countries, since they are considered an international benchmark for obtaining comparable quality financial information. The adoption by Ecuador and Colombia of IFRS as a transition from their previous local regulations based on provisions and decrees, justifies the present research work to provide knowledge of the regulatory reality of both countries. Behind this ambitious adoption of accounting standards, since they are costly processes both financially and in terms of training, there is a need to obtain consistent financial information that should attract investments and facilitate access to other less harmful financial markets. The purpose of this research is to perform an analysis of the effect on the accounting variables of the balance sheet and financial ratios, before and after the application of IFRS on large Ecuadorian and Colombian companies. To do this, Wilcoxon’s nonparametric test of related samples is used, on a total of 204 Ecuadorian companies and 60 Colombian companies. To compare the results of both countries, a non-parametric U Mann-Whitney test is carried out. The results show an impact in both countries on the variables studied after the mandatory adoption of IFRS, although the relative impact is greater in the Colombian case.
Keywords: IFRS, Financial Information, Ecuador, Colombia
JEL Classification: M41, C14, G15, F30
Published online: 16.01.2019
How to cite this paper: Villanueva García, J., Cordova Román, C., & Cuenca Jiménez, M. T. (2018). Adoption of IFRS in Ecuador and Colombia 2010-2016. Corporate Ownership & Control, 16(1-1), 178-184. http://doi.org/10.22495/cocv16i1c1art6