Bolivia has been in the process of integrating IFRS / NIIIFs since 2010.
The depreciation method used is the linear, based on the percentages according to art. 22 of the supreme decree 24051 ‘Utilities tax regulation’.
If the company wishes to use other depreciation rates, it must request authorization for the tax administration, taking into account the exploitation forms and proposed years of lifespan.
The following guidelines should be met in NC Accounting Standard 4 ‘Technical Revaluation of Permanent Assets’:
- The Technical Revaluation should be executed by a professional specialized in the subject, according to the nature of the revalued assets, duly registered in the corresponding professional body.
- Must be approved by the board or executive body responsible for the economic entity.
- Must be approved by the general assembly or the members assembly.
- The increase in value should be offered to taxation.
- The amount of the “Reserve for Technical Revaluation” account may be capitalized or used to absorb accumulated losses.
Note (Article 18, subsection H)
The depreciation corresponding to the technical revaluation made during the tax process must begin as from the effective date of this tax.
Assets subject to financial leases are not depreciable under any circumstances and by any of the contracting parties.
Therefore, in Bolivia with regard to fixed assets, the rules are being applied.