APPLICATION OF IFRS 6 IN THE ECUADORIAN CONTEXT

Abstract

The mining sector in Ecuador has had a boom in recent years, motivated by the policies established by governments. From the accounting point of view, these companies must apply International Financial Reporting Standard 6 (IFRS 6), which seeks to specify financial information related to the exploration and evaluation of mineral resources, trying to recognize their assets for exploration and evaluation, to the Once the deterioration account is incorporated. The present research seeks to describe the use of IFRS 6 by extraction companies in Ecuador and evaluate whether the companies that have incorporated exploration and evaluation assets accounts are more profitable than those that have not. The base of the Superintendencia de Compañías, Valores y Seguros of Ecuador had 1,755 observations of extractive companies, and those that fulfill the characteristic of being companies of extraction of precious minerals were selected, resulting in 764 observations. A balanced panel was prepared for the years 2014 to 2017, of 208 companies.