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Bolivia has been in the process of integrating IFRS / NIIIFs since 2010.   Lifespan 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.    Fair Value 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…Read more

The values ​​presented in this article are the economic values ​​that the assets and companies have when inserted in the market. The economic value can be analyzed by the capacity of cash generation or the comparison with similar ones in the market or by the cost of production or formation. The values ​​usually used in commercial operations are:   Market value: average value of free transactions in the main market; Investment value: value for a given investor at a given moment; Replacement value: replacement value with the same characteristics, but considers the technological upgrades, materials and processes; Reproduction value: reproduction…Read more

The concession contract is a document signed between the granting authority (Government) and the private company chosen through a bidding process. It contains all the obligations of the institutions such as planned investments, works to be carried out, criteria for tariff readjustments, listing of assets delivered by the granting authority, among others.   It is necessary to identify and treat deviations, from the beginning of the concession, regarding asset control, with precise communication to the granting authority through the formats required (reports with measurement parameters and mandatory identification of assets).   Mynarski implements the Management of these Assets by raising,…Read more

The main impacts of IFRS on the management of fixed assets that reflect in the financial statements are: depreciable values, deemed cost, asset revaluations, impairment test and leasing. These analyzes directly affect the values, useful lives and depreciation, exhaustion and amortization rates of the assets.   Impairment Test The Impairment test is intended to prevent an asset from being register with a value greater than the recoverable amount (market value – selling costs). The law establishes that companies must periodically analyze the recovery of amounts recorded in the fixed asssets and intangible assets in order to record the identified losses….Read more