The International Financial Reporting Standards issued by the International Accounting Standards Board (IASB) are a key factor in the internationalization process of the markets, leading to guaranteeing common information as support for the raising of capital. A very important factor in the preparation of the report is the accounting basis. Measurement basis such as fair value impose great valuation challenges, especially for economies in which the markets are not deep and developed enough. Thus, the measurement requirements call for quality valuation processes that minimize any possible distortion of the value; an opportunity for the International Valuation Standards, without a doubt. Based on the definitions of the IASB, the International Valuation Standards Council (IVSC) and the current Colombian principles on measurement basis, there is a stronger link between the fair value definitions of the IFRS, the definition of market value of the IVSC, and the definitions of net realizable value, fair trade value, commercial value, market value and opportunity cost of the Colombian principles. In turn, the definitions with a weaker link are amortized cost, special value and fair value of the IVS.

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Resumen EFFECTS DUE TO THE PROCESS OF IFRS 13 FORMULATION: FAIR VALUE MEASUREMENTS

This article provides empirical evidence on the effects of the corporatization and partial privatization of state enterprises (SOEs) in Latin America on their financial performance. Using dynamic panel data regression models, we identify variables that explain the profitability and investment of state-owned companies in three scenarios: companies with partial privatization by issuing shares in the stock market; non-privatized companies listed on the stock exchange through debt instruments; and unlisted companies. The study found that the partial privatization of EPE through the issuance of shares in the stock market has positive effects on profitability and investment. However, in the case of the bond issue, there was no conclusive evidence on the impact of its financial performance. Finally, for unlisted SOEs, the determinants of profitability and investment are asset size and cost management. The results of this research are relevant given the Latin American public sector reforms implemented in recent decades.

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