Investigate one (1) current Operations Management issue or problem facing his/her organization. The student’s investigation and consultation should explain the problem, its consequences, and examine how you, as a consultant, would advise the organization in solving the problem.
Colombia's Generally Accepted Accounting Principles Analysis Distributed: 23rd March, 2015 Last Edited: 25th April, 2018 Disclaimer: This article has been put together by an understudy. This isn't a case of the work composed by our expert exposition journalists. You can see tests of our expert work here. Any sentiments, discoveries, conclusions or suggestions communicated in this material are those of the writers and don't really mirror the perspectives of UK Essays. Columbian GAAP As per the Constitution of Colombia, just Congress has the expert to issue proper accounting rules. Through enactment, be that as it may, Congress can assign this specialist to the official branch and additionally to different establishments. The Central Board of Accountancy was shaped to direct the bookkeeping calling ("Colombia", 2010). Under this board, the Technical Council for Public Accounting was made. The Technical Council was intended to issue direction on bookkeeping benchmarks, and it was this gathering issued Colombia's proper accounting rules (GAAP) ("Accounting Standards Update by Jurisdiction", 2010). Colombian GAAP depends on US GAAP and International Accounting Standards (IAS). It is imperative to note, notwithstanding, that Colombia's bookkeeping principles have not been refreshed since 1993, so they don't mirror any updates or progressions in global or US benchmarks ("Colombia", 2009). The Colombian Congress additionally enabled administrative offices to issue their own bookkeeping measures to enable them to play out their occupations ("Accounting Standards Update by Jurisdiction", 2010). Since the country has a few offices that each issue distinctive bookkeeping rules for the associations under their ward, the World Bank condemns Colombia for not having universally useful budgetary revealing. There are as of now forty-three unique arrangements of bookkeeping measures in the country. The World Bank is additionally worried that the Central Board of Accountancy isn't getting enough financing to finish its activity altogether and proficiently. In addition, the World Bank is worried that Colombia's implicit rules for bookkeepers isn't steady with the code of the International Federation of Accountants (IFAC). ("Colombia", 2009). There are no evaluating norms that are enforceable by law in Colombia. Moreover, there is no law commanding the free review of money related articulations ("Taxes-Accounting", 2010). Representing the Public Sector National General Accounting Office Bookkeeping models and standards for people in general area of Colombia are given by the National General Accounting Office. Besides, the Office institutionalizes and unites bookkeeping data and is at last in charge of setting up the Nation's Consolidated Balance Sheet. The National General Accounting Office is likewise in charge of laying out what budgetary articulations should be created by people in general area (Contaduria General de la Nacion, 2009). Required bookkeeping reports incorporate monetary records, salary explanations, operational adjusts, and adds ("Taxes-Accounting). The Office will give the general population part clarifications on the planning and norms that the money related explanations must fulfill (Contaduria General de la Nacion, 2009). Collection Basis Colombia's open part bookkeeping models are as of now and effectively during the time spent joining with the collection based International Public Sector Accounting Standards (IPSAS). Since Colombia's open part guidelines were at that point principally collection based, the country did not need to experience huge change to unite with IPSAS. Colombia was amazingly anxious to adjust its bookkeeping models in light of the fact that the country comprehended the requirement for institutionalization with financial globalization proceeding to escalate (Benavides, 2010). Expense Environment Esteem Added Tax Colombia has an esteem included expense of sixteen percent as its type of utilization impose ("Taxes-Accounting", 2010). Varying from a business assess where just the end customer is charged, an esteem included duty is charged at each phase of the creation procedure ("esteem included expense"). There are bring down esteem included expenses for business air transportation and sustenance items at 10% and seven percent individually. Protection items and medicinal care items are totally excluded. Colombia has two different types of utilization impose, including an extract obligation that is demanded on liquor and cigarettes. The country's custom administration likewise charges an expense of 1.2% on imports from different nations. Countries that have consented to exchange arrangements with Colombia are excluded from the import impose ("Taxes-Accounting", 2010). Corporate and Personal Income Taxes The individual and corporate assessment rates of Colombia are a portion of the most astounding in Latin America (Department of State). The country charges a corporate pay expense of thirty-three percent on all organizations aside from those situated in the unhindered commerce zone. Those organizations are just charged fifteen percent. A novel part of Colombia's corporate duty framework is that most capital additions are charged at the conventional rate. Capital picks up that are absolved or exhausted at an uncommon rate are in the minority. Normal, devaluation and consumption costs are deductible. Net working misfortunes, costs abroad, and particular duties are a portion of the other ordinarily deductible things. For people, Colombia has a dynamic expense framework that reaches from zero to thirty-three percent. Colombia's expense framework measures singular pay utilizing Tax Value Units (UVT) ("Taxes-Accounting", 2010); one Tax Value Unit is equivalent to 24,555 Colombian Pesos ("Colombia Tax Rates", 2010). The individual salary charge advances through four levels: zero percent, nineteen percent, twenty-eight percent, and thirty-three percent. All citizens that have more prominent than 4,100 UVT are charged a thirty-three percent salary impose rate ("Taxes-Accounting", 2010). IFRS Consistence with IFRS Colombian GAAP has not been refreshed since 1993, so the World Bank prescribes that Colombia embraces International Financial Reporting Standards completely and that the country makes a High Council to oversee and supervise this procedure. Moreover, the World Bank might want Colombia to make a body that authorizes these bookkeeping and examining models. From 2007 to 2009, the Colombian Congress has been struggling with a bill that would command every single vast organization in the country to completely receive IFRS by 2010. The bill would likewise stipulate that little to medium organizations embrace IRS by 2012 ("Colombia", 2009). Notwithstanding, in 2009, the Colombian Congress established a bill that requires the merging of Colombian GAAP with IFRS, rather than the total appropriation of IFRS. Gauges Compliance Index At present, as indicated by the Financial Standards Foundation's Standards Compliance Index, Columbia has just acquired a score of 40.83 out of 100 and positions 48 among different nations for consistence with universal measures. The country is effective with information straightforwardness and macroeconomic approach consistence however needs to take a shot at curing the straightforwardness of its financial strategy. Columbia has battled with the last on account of troubles dealing with the financial plan both locally and municipally. The country's shortcoming in money related direction and oversight has had the best negative effect on the Standards Compliance Index ("Colombia", 2009). This is obviously an aftereffect of the absence of examining benchmarks and the absence of required free budgetary reviews ("Accounting Standards Update by Jurisdiction", 2010). Columbia scored generally well in bookkeeping and inspecting norms as a result of the development of enactment that commits the nation to uniting its present evaluating models with worldwide benchmarks ("Colombia", 2009). Reviewing Standards In the World Bank's evaluation of Columbia, the organization was worried over the country's absence of inspecting principles. The International Monetary Fund likewise found that Columbia did not consent to global examining models. Moreover, the World Bank was irritated that outside reviews are not compulsory and that the idea of freedom does not exist in Columbia. "The World Bank reasoned that, in Colombia, 'the authoritative prerequisites on inspecting negate the cutting edge idea of money related articulations reviews'" ("Colombia", 2009). In this country, evaluators additionally go about as controllers, and the last part should just be expected by administration to stick to this same pattern with universal standards. Thus, the World Bank prescribed that Columbia embrace International Standards on Auditing (ISA) and grow new enactment that will make directions for examiners and enhance inspecting necessities. The enactment ought to likewise make an association that would manage examiners and uphold evaluating benchmarks. To additionally enhance the quality of its examining calling, Columbia ought to enhance the permitting necessities for evaluators and give preparing programs on International Standards on Auditing. The country ought to likewise make an expert association that supports the freedom of inspectors ("Colombia", 2009). Columbia is presently during the time spent merging its examining guidelines, or deficiency in that department, with worldwide necessities.>GET ANSWER