Measurement of contingent liabilities for disputes and lawsuits against government entities, Colombian experience

Abstract

This article aims to externalize the methodology to recognize, measure, present and disclose contingent liabilities by alternative dispute resolution mechanics applied by the national government under the accounting regulatory framework for public sector entities and the methodology to value contingent obligations. that the Ministry of Finance and Public Credit uses with the support of the National Agency for Legal Defense of the State, Presidency of the Republic of Colombia and Congress of the Republic for economic and financial decision-making inside and outside the entities public, based on a conceptual and legal description to identify the different stages and processes used by them. It also includes the balances as of December 31, 2018 due to litigation and alternative conflict resolution mechanisms at a consolidated level by entities of the national and territorial order according to the consolidated financial information issued by the General Accounting Office of the Nation for convergence to International Accounting Standards for the Public Sector (IPSAS) and International Financial Reporting Standards (IFRS).