International Financial Reporting Standards as a tool to combat fraud and bribery

Abstract

Fraud is a deception from which one party makes a profit and another a loss. To combat it, each of the companies, through its legal system, establish rules aimed at controlling and monitoring it. The purpose of this study is to analyze the International Financial Reporting Standards (IFRS) as a tool against fraud. These standards offer an opportunity to improve the financial function of entities, obtaining greater transparency in their disclosures. The study was revealed by analyzing the case of fraud carried out by Empresas La Polar S.A., exposed in 2011. For this, official documents published by the Superintendence of Securities and Insurance, today the Financial Market Commission, and the Audit Reports and Statements were reviewed. Consolidated Financial Statements of Empresas La Polar S.A., in the periods 2005 to 2016. In relation to the results obtained, the comparison of the days of accounts receivable of Empresas La Polar S.A. stands out. in relation to Falabella S.A., both companies in the retail industry, where there is a significant difference between the average days to collect. In Empresas La Polar S.A. there is an increase in accounts receivable between 2007 and 2008, when they decrease in the industry. In conclusion, the investigation showed that Empresas La Polar S.A., once it complied with the transition process to IFRS, was responsible for presenting and disclosing financial information that under the Generally Accepted Accounting Principles (GAAP) it was not mandatory to disclose.