Change in Accounting Group in accordance with Decree 2420 of 2015
In accordance with Decree 2420 of 2015, the Colombian companies classified within the Groups 1, 2 and 3 of reference for the different regulatory frameworks, should remain in said groups mandatorily 3 years from the date of the ESFA; At the end of 2017, these 3 years ended for all companies.
Thus, either by fulfilling the conditions of a different Group, or by voluntary decision, a company must / can change the Group in the current year, following a series of steps:
- Inform about the change to the corresponding Superintendence, or to the supervisory and control authority that replaces it.
- Establish new accounting policies, defined by the new regulatory framework to be adopted.
- Prepare a new ESFA on January 1, 2018, if the period of application of the new regulatory framework is the year 2019.
- Have, as of December 31, 2018, the annual accounting in the two regulatory frameworks, to the extent that during 2018 the applicable regulatory framework is the pre-existing one.
- Prepare, as of December 31, 2019, comparative complete financial statements under the new regulatory framework adopted.
JGS can advise your company in this process, initially identifying if you are already fulfilling the conditions to make the change, and accompanying it in each of the steps mentioned, until the successful issuance of the first Financial Statements under the new framework.