1. Filing Requirement for Financial Statements of Branches of Foreign Companies, through Official Letter No. 220-306219 dated June 23, 2026, the Superintendence of Companies clarified the scope of the financial statement filing requirement applicable to branches of foreign companies.

The Official Letter establishes that branches subject to the inspection level of supervision that have not been specifically required to submit financial information to the Superintendence must file their general-purpose financial statements, together with the accompanying notes and the statutory auditor’s report, with the Chamber of Commerce of their registered domicile.

Through this Official Letter, the Superintendence establishes a consistent interpretation regarding compliance with this requirement and provides greater legal certainty for branches of foreign companies.

See: Official Letter No. 220-306219 dated June 23, 2026 – Superintendence of Companies.

2. Amendments to the Financial Reporting Frameworks Applicable to Groups 1 and 2 On July 7, 2026, the National Government of Colombia issued Decree 0701 of 2026, which partially amended the financial reporting technical frameworks incorporated into Decree 2420 of 2015 for entities classified under Groups 1 and 2.

• For Group 1, the Decree incorporates amendments relating to IFRS 16, IAS 1, IAS 7, IFRS 7, IAS 12, and IAS 21.
• For Group 2, it updates Section 29 – Income Tax, primarily in connection with the Pillar Two rules.

The main implications include new criteria for the classification and disclosure of liabilities subject to covenants; enhanced disclosures regarding supplier finance arrangements and liquidity risk; guidance on estimating exchange rates when a currency is not exchangeable; and specific requirements for the recognition and disclosure of the effects of the global minimum tax.

See: Decree 0701 dated July 7, 2026 – Ministry of Commerce, Industry and Tourism.

3. Accounting Treatment of the Legal Reserve and Profit Distribution, through Concept No. 0146 of 2026, the Technical Council of Public Accountancy (CTCP) clarified the accounting treatment applicable to the legal reserve and profit distributions.

• The CTCP clarified that the legal reserve constitutes an appropriation of profits rather than an expense and, accordingly, must be recognized as an equity item. It also reiterated that profits may be distributed only after the financial statements have been approved by the highest governing body of the corporation.
• The Concept reaffirms the applicable accounting and corporate law treatment of the legal reserve, retained earnings, and dividend distributions, thereby supporting the proper application of the provisions of the Colombian Commercial Code and Law 222 of 1995.

See: Concept No. 0146 of 2026 – Technical Council of Public Accountancy (CTCP).

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