Usefulness of the international financial reporting standards in the Venezuelan banking

Abstract

This study analyzes the utility of the International Financial Reporting Standard in the financial reports and the usage of the Venezuelan Bank in order to make decisions about granting credits. In Venezuela, it is obligatory to apply these standards since January 1- 2008 for big entities and since January 1- 2011 for small and medium-sized entities. Since this investigation was made (July 2012), this disposal must be complied. It was applied a questionary to the financial entities in El Vigía, Mérida, and it was determined: the bank considers that the financial reports are comprehensible, relevant, reliable, and integral, in the same way, some entities do not request annual financial reports, the measurement base is the historical costs and reasonable value. The notes to the financial statements are not totally emitted in most of the cases.