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Chile has implemented the international financial reporting standards and fixed assets are guided by IAS (NIC) 08, 16 and 36. Fair values and useful lives should be reviewed annually and any addition or decreases should be recorded in specific accounts. All assets, including those with undefined useful lives, must have their useful lives reviewed. With these analyzes the financial statements reflect the real situation of fixed assets….Read more

Uruguay has been in the process of integrating IFRS / NIIFs standards since 2008.   Fair Value Revaluations must be performed regularly and frequency depends on changes in the assets’ fair values. The rules for these evaluations should follow the following topics: The revaluation should be performed by a specialized professional and duly registered with the corresponding professional body; All items from a same class must be reassessed; The increase in value should be offered to taxation; The residual value and the amortization method should be reviewed at least annually. It should be ensured that the companies do not have…Read more

Peru has been in the process of integrating IFRS / NIIFs standards since 2009.   Fair Value Revaluations must be performed regularly and the frequency depends on changes in the assets’ fair values. The rules for these reassessments should follow the following topics: The revaluation should be performed by a specialized professional and duly registered with the corresponding professional body; All items from the same class must be reassessed; The value increase should be offered to taxation; The residual value and the amortization method should be reviewed at least annually. It should be ensured that the companies do not have…Read more

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 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