Accounting and tax implications of IAS 16 in the tax conciliation of Ecuafeed S.A., Santa Elena, 2021

Abstract

Introduction. Countries worldwide have seen the need to oversee the same language within the financial accounting field when the International Accounting Standards came into force. Ecuador shared this dynamic by promoting the application of IAS 16, fulfilling the objective, verifying its depreciable amount and the operation of its tax system through the creation of laws and regulations to achieve an adequate contribution by taxpayers. Therefore, mechanisms have been implemented that reduce tax costs in the declaration and collection of the different taxes generated. However, despite the efforts by the tax administration to achieve its application, there are still tax and accounting analyzes that taxpayer must comply with their tax obligations, which generates that taxpayer incur in the non-application of the already existing regulations. It is due to ignorance or because they do not have the support staff. Goal. Properly apply the accounting and tax implications of NIC 16 in the tax reconciliation of Ecuafeed S.A., for the generation of deferred taxes. Methodology. The applied method was deductive, with a qualitative and quantitative approach, not experimental design, and documentary type. The population forty workers of the company Ecuafeed S.A. in Jambelí del Cantón Santa Elena, which is our object of investigation, where the study of the application of NIC 16 was conducted. Results. Among the results obtained through the application of the international accounting standard, it is evident that it has a significant impact on the tax reconciliation of Ecuafeed S.A. to reinvest their profits. Conclusion. It was concluded that the application of NIC 16 and its related issues are applied by Ecuafeed, and the benefits are taken advantage of according to what is established in the legal and tax systems.