Impact of ifrs on the quality of financial information and its influence on decision-making in colombian companies

Abstract

This study analyzes the impact of adopting International Financial Reporting Standards (IFRS) on the quality of financial information and how this adoption influences business decision-making in Colombia. The central theme focuses on the convergence of local accounting practices towards a global standard, as well as the effects this transition has had on the accuracy, comparability, and transparency of financial statements. The general objective of the research is to determine whether the adoption of IFRS has improved the quality of financial information in Colombian companies and how this has influenced investment and financing decisions. The applied methodology was a quantitative approach, utilizing a non-experimental and correlational design. A sample of 50 Colombian companies from various sectors was selected, including both large corporations and small and medium-sized enterprises (SMEs). Financial data from these companies, corresponding to the period 2016-2021, was collected and analyzed using multiple linear regressions to assess the relationship between IFRS adoption and the quality of financial information, as well as its impact on business decisions. The results indicate that IFRS adoption has had a positive impact on the transparency and comparability of financial reports, with a 25% improvement in the faithful representation of assets and liabilities. Additionally, there was a 30% improvement in the comparability of financial statements, facilitating access to financing under better conditions, especially for large companies. However, SMEs faced greater challenges in implementing IFRS, limiting the positive impact on their financial information quality and access to credit.