Abstract
This study examines the initial impact of adopting the International Financial Reporting Standards (IFRS) in Chile, both on Chilean companies’ financial statements and on their capital market. The aspects that we consider relevant are the following: (1) applying a fair value to the measurement of non-current assets and (2) variations in stock price‚ in the companies that started applying the Full-IFRS in 2009.
The results show that there are a significant number of companies that have experienced an increase in their book value equity (equal to or greater than 25 %). Nevertheless, the use of fair value in assets measurement is observed to be rare. With respect to market capitalization, this study shows that the publication of intermediate financial statements corresponding to the first quarter of 2009 may have generated a positive effect on stock prices on an average of 4.3 %.
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UN (2014). “Concise Report on the World Population Situation in 2014”, p. 1. http://www.un.org/en/development/desa/population/publications/pdf/trends/Concise%20Report%20on%20the%20World%20Population%20Situation%202014/en.pdf
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Trade and Development Board (2005). “Review Of Practical Implementation Issues Of International Financial Reporting Standards”, United Nations Conference on Trade and Development. Geneva, 2005, p. 3. http://unctad.org/en/docs/c2isard28_en.pdf
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Colegio de Contadores de Chile, founded in 1958, according to Ley 13.011
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Free translation by the author.
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Free translation by the author.
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According to Ley 13.011
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The CCCH established their applicability since January 1, 2013, by publishing “Boletín Técnico N° 82”.
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The dates analyzed are linked to the announcements made by the SVS about the IFRS adoption process and to company publications that announced the effects of the regulatory changes and presented their first financial statements under the IFRS.
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According to the outlines of Boletín Técnico N° 79 issued by the Colegio de Contadores de Chile.
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Azúa, D., Pizarro, V. (2016). Chile. Adopting the IFRS in Chile: Influences on Companies and the Capital Market. In: Bensadon, D., Praquin, N. (eds) IFRS in a Global World. Springer, Cham. https://doi.org/10.1007/978-3-319-28225-1_24
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