Effect of IFRS on the economic value added of agricultural companies in Colombia
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Abstract
The objective of this article is to determine whether the adoption of International Financial Reporting Standards (IFRS) has had an effect on the Economic Value Added (EVA) of agricultural companies in Colombia. The adoption of IFRS implies a series of changes in accounting recognition and measurement, so it is expected to have some impact on the economic value of companies. The research was carried out using a quantitative and explanatory methodology. The financial statements of 51 agricultural companies that reported on a permanent basis to the Superintendence of Companies between 2010 and 2021 were analyzed. The EVA model was used to evaluate the impact of IFRS adoption on the economic value of these companies. The results of the research include a descriptive analysis and the calculation of the EVA model. The descriptive analysis focused on the comparison of GAAP and IFRS financial statements. The results of the EVA model suggest that there is no significant impact of IFRS adoption on the value of the agricultural companies analyzed. The results of this research may be useful to understand the impact of IFRS in other productive sectors of the country.
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