Essay: EcoPetrol SA financial statements
Looking at the financial statements of EcoPetrol SA which is listed on the Bogota Stock Exchange, we see that the financial reporting within the company is relatively strong. One is the listing of important data in the notes of the financial statements that appear to be in detail (Global Reports 2008).
This hints to a strong explanation of transactions and steps taken during the year which aids more transparent representation. A second strength is the auditor review. The statements come attached with auditor confirmation that the statements have been reviewed and according to the standards and these are confirmed by the certificate the external auditors provide (Financial Statements 2008). However, the company does not adequately list the frequency of the board of directors meeting which needs to be known as the board oversees the top management which needs to be done to prevent abuse, especially since Colombia is a third world country. Another is the lack of transparency regarding the transactions that may require shareholders resolutions and a clear listing of the obligations to shareholders that the company holds. The organizational structure is mainly based on departmental levels and allows for a degree of non centralization, crucial for the oil industry.
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