Regresar

Income from Ordinary Activities and Its Tax Impact on Companies in the Automotive Sector in Ecuador

Abstract:

The objective of the International Financial Reporting Standards (IFRS) is to provide guidelines for the preparation of financial statements. The automotive industry seeks to establish parameters for the recognition of income from ordinary activities from contracts and its correct presentation in the financial statements. However, many companies in this sector still emphasize accounting for revenue according to billing, without taking into account the mandatory application of the new revenue recognition model, assuming significant tax risks. For this purpose, a descriptive and correlational investigation was carried out in order to measure the degree of relationship between the accounting, financial, tax aspects and their subsequent control through the Audit, related to the income of companies in the Ecuadorian automotive sector, in the period from 2018 to 2021. The results obtained show that the recognition of income in accordance with IFRS has a significant direct positive impact on tax aspects with an indicator of 0.35. As well as the alternative hypothesis regarding the incidence of the income audit in the financial, accounting and tax impact in the companies of the automotive sector, since the global correlation between all the components and dimensions of the variables presents a value of 0.38. As a final contribution, the hypothesis was verified with a practical case.