NIF applicable from January 1, 2014:
- NIF C-11, Stockholders' equity, NIF C-12, Financial instruments with liability and capital characteristics, Improvements to NIF 2014.
NIF applicable from January 1, 2016, allowing early application:
- NIF C-3, Accounts receivable, NIF C-20, Financing instruments receivable.
NIF C-11 Stockholders' equity
Concepts such as "share split", "reverse split" and splits are incorporated, which have arisen in business practice.
The previous Bulletin C-11 said that in order for advances for future capital increases to be presented in stockholders' equity, there would be “resolution in an assembly of partners or shareholders that they will be applied for increases in capital stock in the future, otherwise These amounts must form part of the liabilities in charge of the entity ”. The current NIF C-11 also requires that there be a commitment not to return the contributions before capitalization, and that a fixed number of shares be specified for the exchange of advances.
When an entity acquires its own shares, these are called treasury shares and are decreased from the capital stock, except when acquired on behalf of a third party, in which case that transaction represents an account receivable and not a decrease in capital.
NIF C-11 generically indicates when a financial instrument meets capital characteristics, to be considered as such, since otherwise it would be a liability (see NIF C-12, Financial instruments with liability and capital characteristics, that the CINIF is reformulating). Some entities have issued financial instruments that by economic substance are capital, such as the capital component of an obligation convertible into shares or a liability in favor of another entity that in fact controls the entity.
NIF C-12 Financial instruments with liability and capital characteristics
The main change is that for a financial instrument to be considered as a financial capital instrument, there should be no obligation to make a payment to the holder of the same for a fixed or determinable amount in advance, that is, that the holder of the same is exposed to the entity's risks and rewards, rather than being entitled to collect a fixed amount from the entity.
The issuer of a financial instrument must classify it, at the time of its initial recognition, as a financial liability or a capital instrument according to its economic substance and not only its legal form.
Improvements to NIF 2014
NIF B-3 Statement of comprehensive income
… This NIF does not require the presentation of the items of other income and other expenses; however, when the entity deems it appropriate, it can use them.
NIF C-5 Prepayments
Advance payments in foreign currency must be recognized at the exchange rate on the date of the transaction (historical exchange rate), that is, they must not be modified due to currency fluctuations.
NIF C-13 Related parties
Joint operations are considered related parties.
The segregated presentation of balances with related parties may be made in the statement of financial position or in the notes to the financial statements.
NIF C-15 Impairment of long-lived assets
It is specified that the impairment loss should not be capitalized.
Bulletin C-15 establishes that impairment losses must be presented in results in costs and expenses in which the depreciation or amortization associated with the corresponding assets is recognized. With this criterion, losses due to impairment in the value of another asset, for example inventories (via manufacturing expenses), would be capitalizing.
Losses due to impairment in associates, joint ventures or other permanent investments must be dealt with in accordance with NIF C-7 Investments in associates, joint ventures and other permanent investments.
Main changes for the years beginning on January 1, 2016, allowing early application.
NIF C-3 Accounts receivable
Recognize the allowance for bad debts for trade accounts receivable, from the moment the income is earned; additionally requiring a reconciliation between the initial and final balance of the estimate for uncollectibility.
Recognize the value of money over time, when the collection of the account receivable is agreed, totally or partially, for a period greater than one year, since it is considered that there is a financing operation.
In the case of trade accounts receivable, individual or group balances representing more than 10% of said accounts receivable are considered a significant concentration, which must be disclosed, indicating the type of customer, without the need to indicate name.
In cases where there is a right to offset an account receivable with an account payable, the provisions of NIF B-12, Compensation of financial assets and financial liabilities, must be followed.
NIF C-20 Financing instruments receivable
The concept of intention of acquisition and possession of these is discarded to determine their classification. Instead, the management business model concept is adopted, whether to obtain contractual performance, to generate contractual performance, and to sell to meet certain strategic objectives or to generate profit from buying and selling, to classify them according to the corresponding model.
