Accounting Treatment in Mercosur and Andean Community: A Study on Investments in Associates and Subsidiaries Enterprises

Abstract

The objective of the study is to investigate the level of convergence with international accounting standards in relation to the accounting treatment of investments in associated companies and industrial firms in the countries of MERCOSUR and the Andean Community. We analyzed the measurement and disclosure of the items that make up the Active on a sample of thirty industrial companies of these two economic blocs. The sample was chosen by criteria of intentionality and accessibility, and the data obtained from the electronic pages of the national bodies responsible for controlling and supervising capital markets in each country. The data collected were subjected to descriptive analysis for preparation of abstracts, tables relating to the measurement and disclosure of these assets. In general, it was found that in the year 2012, the practices are converging with IAS 28 in the different countries. We noted almost full convergence with international standards issued by the IASB; Bolivia following the local regulations in force issued by CAUB, in the absence of speech, it is used to IASB standards; for Chile 's foreseen regulatory convergence for the year 2013 and Colombia in 2015. Finally, it is clear that there is still a way to go, so that the countries of the Andean Community, the accounting practices relating to investments in subsidiaries are fully harmonized, converging to internationally accepted accounting standards.