Abstract:

This study examines the challenges and needs faced by non-profit organisations (NPOs) in Colombia regarding the adopting of the International Financial Reporting Standards (IFRS) for small and medium enterprises (SMEs), particularly focusing on sections 3 and 4. Employing a mixed-method approach, the research combines qualitative and quantitative methods. Surveys were conducted with Colombia NPOs, official documents were analysed, and comparative case studies were performed. In-depth interviews and participant observation were also utilised to gain a comprehensive understanding of the obstacles and current practices within the Colombian context. The findings reveal that NPOs in Colombia encounter significant difficulties in adopting IFRS due to the complexity of the standards, lack of specialised resources, and the need for specific training. Internal challenges such as deficiencies in staff qualifications and training, resistance to change, and technological limitations were identified. Externally, ambiguities in the legal framework and donor requirements were highlighted. The case study illustrated that, while there are similarities between IFRS for SMEs and the IFR4NPO project, specific adaptations are essential to address the unique needs of NPOs. This research underscores the necessity of developing additional guidelines or modifying existing ones to enhance the interpretation and application of IFRS in Colombia NPOs. It is recommended to implement proactive strategies based on education and legislative reform to improve the transparency and comparability of financial information. Adopting a more tailored and supported accounting framework will facilitate a more relevant and sustainable implementation, benefiting Colombian NPOs in their resource management and accountability efforts.

Keywords: NPO; IFSR; SMEs; financial statements

Authors:

Ruth Rodriguez-Galindo
Servicio Nacional de Aprendizaje SENA, Bogotá 110110, Colombia

Carla Yasnó-Triana
Universidad Nacional Abierta y a Distancia UNAD, Bogotá 110110, Colombia

Andrés Ultreras-Rodríguez
Universidad Autónoma de Sinaloa, Sinaloa 82000, Mexico

Daniel Nieves-Lizárraga
Universidad Autónoma de Sinaloa, Sinaloa 82000, Mexico

Denisse Osuna-Velarde
Universidad Autónoma de Sinaloa, Sinaloa 82000, Mexico

Adriana Chávez-Hernández
Universidad Autónoma de Sinaloa, Sinaloa 82000, Mexico

Shirley Campos-Sánchez
Universidad Estatal del Sur de Manabí, Jipijapa 13031, Ecuador

Adriana Salazar-Moran
Universidad Estatal del Sur de Manabí, Jipijapa 13031, Ecuador

Pedro S. Moreira-Cantos
Universidad Estatal del Sur de Manabí, Jipijapa 13031, Ecuador

Gladys Espinoza-Vásquez
Universidad Nacional del Callao, Lima 15001, Peru

Raúl Rengifo-Lozano
Universidad Nacional Mayor de San Marcos, Lima 15001, Peru

Liliana Fuentes-Rosas
Tecnológico Nacional de México/ITS de Tierra Blanca, Tierra Blanca 95180, Mexico

Cristian Rincón-Guio
Politécnico Grancolombiano, Bogotá 110110, Colombia

Corresponding author: Cristian Rincón-Guio, rinconguio@gmail.com, calrincong@poligran.edu.co