S
Sunny
Guest
(Chrome translation of https://www.infobae.com/economia/20...-sincero-una-perdida-multimillonaria-en-2023/)
The Central Bank revealed a multimillion-dollar loss in 2023
The monetary organization presented its balance sheet for last year, where it stated that it had a loss of almost $44 billion as of December 31, due to the modification of accounting standards.
The Central Bank of the Argentine Republic (BCRA) modified accounting standards that led it to recognize a loss of almost 44 trillion pesos in the balance sheet corresponding to 2023. This amount represents about USD 54,000 million at the official exchange rate of $808.45 at December 29 of last year.
According to a press release known this Friday, these changes were made to adjust their numbers to international methodology . “These adjustments in terms of accounting valuation meant, as of December 31, 2023, the recognition of a loss of $41,555,355 million with respect to the Non-Transferable Bills , and $2,315,415 million with respect to the Temporary Advances ,” the monetary authority specified. chaired by Santiago Bausili .
The entity explained that "the main impact of this adaptation is observed in the valuation criteria of Non-transferable Bills and Other National Treasury Bills in US dollars, as well as Transitional Advances to the National Government." And he argued that “previously, for the valuation of both exposures with the Public Sector (Nontransferable Bills and Transitory Advances) the criteria of “Technical Value” and “Nominal Value” were used, respectively, two criteria not accepted by Argentine professional accounting standards. in force for the valuation of similar credits.”
By whitewashing this calculation, which allowed the previous administration to record accounting profits that were not real, the current BCRA authorities established “effectively from the financial statements as of December 31, 2023, that the valuation of the aforementioned instruments is will be carried out at “amortized cost considering the limit of recoverable value”, a criterion established by current Argentine professional accounting standards.
According to the BCRA, "the measure adopted made it possible to eliminate the significant differences in the valuation of the aforementioned instruments with the current Argentine professional accounting standards, arriving at an objective measurement of the Net Assets as a diagnosis of the initial situation inherited by the present Board of Directors."
“This adaptation constitutes the first step in the direction of presenting the financial statements based on the International Financial Reporting Standards (IFRS), as applied to financial entities in Argentina,” added the press release.
Likewise, the BCRA stated that “the recognition of the aforementioned capital loss eliminates the possibility of resorting to transfers of accounting profits (which poorly reflected the real economic and financial situation of the Institution) as an alternative mechanism of monetary financing to the Treasury, consistent with the commitment to zero deficit and the elimination of monetary financing.”
This resource was used by all governments starting in 2003, although profusely used during the government of Alberto Fernández and also during the second presidency of Cristina Kirchner , periods in which the transfer of profits generated by the hand of the devaluation, because when the official exchange rate rose, the holding in the Central's assets of Non-Transferable Bills and Other Treasury Bills in dollars grew -measured in pesos- in the same proportion of the jump in the dollar, as in the accounting records of the entity was reported as a profit from the supposed administration of those public bonds in the portfolio.
Only during the four years of Alberto Fernández's presidency, profit transfers reached $2.8 trillion ($2,764,694 million).
