ARTÍCULOS
Y NOTICIAS

THE LIBOR RATE AND THE PRESUMPTIVE INTEREST

The need for a uniform measure of interest rates across financial institutions became necessary when the market for interest rate-based products began to evolve during the 1980s. In this context, the Libor rate has been used as a reference interest rate to set the price of loans and derivative products around the world. However, its use has been questioned, especially since the “LIBOR scandal” that occurred in 2012. According to

+ KEEP READING

THE MODEL OF EXPECTED CREDIT LOSSES IN NON-PROFIT ORGANIZATIONS

The current expected credit loss model (International Financial Reporting Standard – IFRS 9 or its equivalent in USGAAP, ASU 2016-13), requires the immediate recognition of an estimate for expected credit losses (ECL) during the life of a financial instrument, including accounts receivable, net investments in leases (for lessees with sales-type or direct financing leases) and for certain credit exposures maintained in memorandum accounts. The estimate (i.e., reserve, provision or equivalent)

+ KEEP READING

AI HAS HACKED THE OPERATING SYSTEM OF HUMAN CIVILIZATION

The famous 42-year-old Israeli historian reflects on the capabilities and horizon of Artificial Intelligence (AI) in this recent article published by The Economist (www.theeconomist.com) dated April 28, 2023. The writer argues that new artificial intelligence tools have emerged in recent years that threaten the survival of human civilization from directions never thought before. The AI has acquired some remarkable abilities to manipulate and generate language, be it with words, sounds

+ KEEP READING

TAX REGIME OF AQUACULTURE IN PERU

In accordance with the tax provisions, we specify below what concerns the tax regime of aquaculture in Peru. Background When addressing the issue of aquaculture, we understand as such the cultivation of aquatic plant and animal species. It implies a set of technical activities and knowledge of raising or cultivating aquatic species, both plant and animal. When referring to farming, we note that it not only involves intervention in the

+ KEEP READING

ACCOUNTING OF FIRST CATEGORY INCOME TAX IN LEASE PAYMENTS BY TENANTS

Introduction At present, operating leases mean an implicit source of financing for the exploitation of goods (movable and immovable) of third parties in the development of the activities of the companies; In this sense, the International Financial Reporting Standard – IFRS 16 «Leases» requires that lessees recognize in their statements of financial position (balance sheets), the right-of-use asset and lease liability for all lease contracts, except specific exceptions. What is

+ KEEP READING

APPLICATION OF THE INTERNATIONAL AUDITING STANDARD (ISA) 700 AND 701 IN PERU

I start by defining, what is an audit process? An audit process is carried out in order to have an updated, truthful and concrete vision of the financial situation of an entity. Through previously designed procedures, the financial statements are examined in order to analyze them and then issue the opinion of the independent auditors that contains the respective opinion. Need for a change The audit report that contains: (i)

+ KEEP READING

IMPLICATIONS OF IFRIC 23 «UNCERTAINTY REGARDING INCOME TAX TREATMENTS»

IFRIC 23 – «Uncertainty regarding Income Tax Treatments» is one of the most important that every accounting professional must take into consideration when preparing financial information in accordance with International Financial Reporting Standards – IFRS (IFRS ) at the end of the financial year. A brief related scope of how to identify an uncertainty under this interpretive standard is explained below. We can mention that IFRIC 23 was issued internationally

+ KEEP READING

THE EVOLUTION OF POST-PANDEMIC ELECTRONIC COMMERCE

The staggered growth of electronic commerce could be seen since before the pandemic, it was the spread of the pandemic that drastically changed consumer behavior and prompted companies to accelerate the transformation of commerce. The start of the pandemic led governments to begin confinement of the population and announce blockades that caused the closure of physical stores around the world. Non-essential businesses closed and those that remained open had to

+ KEEP READING

FINANCIAL REPORTS IN NON-PROFIT ENTITIES

From the investigation if there is any entity in Peru that issues pronouncements on the accounting and issuance of financial reports for non-profit entities, it has been identified that there is no entity. In this regard, the following is required: Of posting The International Financial Reporting Standards – IFRS, do not specifically specify how to treat Grants for accounting purposes, however, the same standards in the preface section indicate that

+ KEEP READING

TELEWORK: A TOOL TO EXPLOIT IN THE DIGITAL AGE

Although teleworking is not a new phenomenon, in the context of the COVID-19 pandemic, and associated with the confinement measures implemented to reduce infections, this type of work has increased significantly in Latin American countries, as well as in the rest of the world. Teleworking facilitated the continuity of certain economic activities, consequently the employment relationship, which was particularly important considering the strong negative impact of the crisis on labor

+ KEEP READING