CTCP Remembers the criteria for the classification of companies - IFRS

Financial information application groups.



The Technical Council of Public Accounting (CTCP) in its capacity as Technical-Scientific Guiding Body of the profession and Standardizer of Accounting, Financial Information and Information Assurance Standards, in accordance with current legal regulations, especially as regards provided in Law 43 of 1990, Law 1314 of 2009, and in its Regulatory Decrees, proceeds to respond to the concern formulated, in a general way, since it is not intended to resolve particular cases, in the following terms:

Through a response to query 2022-0542 with filing date 10-31-2022, in which a similar question was resolved, which we believe pertinent to bring up, since it is related to the regulations cited by the consultant, this Council presented and clarified:

“Within the character already indicated, the responses of the CTCP are of a general and abstract nature, since its mission does not consist of solving specific problems that correspond to a particular case. In addition to the above, the scope of the concepts issued by this Council is limited exclusively to aspects related to the application of accounting standards, financial information and information assurance.


Respecto a lo anterior, sea pertinente aclarar  lo siguiente:

  • Decree 957 of 2019 is incorporated into DUR 1074 of 2015, and its purpose is to regulate the classification of micro, small, medium and large companies, taking into account the criteria of gross sales, assimilated to that of income from annual ordinary activities. , in accordance with the provisions of article 2 of Law 590 of 2000, modified by 43 of Law 1450 of 2011; The classification has a different purpose than those established in DUR 2420 of 2015, and seeks to promote access to financial markets, stimulate business creation, among others (http://www.suin-juriscol.gov.co/viewDocument. asp?ruta=Laws/1670219);
  • The classification of companies to observe their financial information framework to apply, are established in DUR 2420 of 2015, and refer to the following:
ConditionGroup 1Group 2Group 3
Entity that has securities registered in the National Registry of Securities and Issuers (article Decree 2420 of 2015).X  
Entities and businesses of public interest (article Decree 2420 of 2015).X  
Entities that have a staff of more than 200 workers or total assets greater than 30,000 SMMLV and that are subordinates, branches or controllers of an entity that applies IFRS (article Decree 2420 of 2015).X  
Entities that have a staff of more than 200 workers or total assets greater than 30,000 SMMLV and that carry out imports or exports that represent more than 50% of the purchases or sales, respectively (Article Decree 2420 of 2015).X  
Entities with a staff of no more than ten (10) workers; with total assets, excluding housing, for a value of less than five hundred SMMLV; and who have annual gross income of less than 6,000 SMMLV (Annex 3 of Decree 2420 of 2015, paragraph 1.2)  X
Entities that do not meet the above requirements X 

Note that the classification of Decree 2420 of 2015, for accounting purposes, does not conflict with the provisions of Law 1450 of 2011, which modified Law 590 of 2000 and article of Decree 957 of 2019, which in what is pertinent is also clarified by paragraphs 1 and 2 of the aforementioned Decree.


The Council does not observe any impropriety as stated, for which reason it considers that as of 2023, the guidelines incorporated in Decree 1670 of 2021 must be complied with.

In the above terms, the query is acquitted, indicating that, to do so, this body adhered to the information presented by the queryer and the effects of this concept are those provided by article 28 of Law 1437 of 2011, modified by article 1 of Law 1755 of 2015.


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