Argentina

Member Organizations

Member Organization Associate

  Federación Argentina de Consejos Profesionales de Ciencias Económicas

Legal and Regulatory Environment

  • Overview of Statuatory Framework for Accounting and Auditing

    The Argentine Commercial Companies Law No. 19.550, as amended, and the Code of Commerce provide the basic legal framework for companies, including requirements relating to accounting, keeping accounting records, publication of financial statements, and auditing.

    The corporate financial reporting framework in Argentina at present enables each province to have a great deal of autonomy in setting specific requirements for companies along with the city of Buenos Aires which may establish requirements for companies registered in its dominion. For example, each individual provincial council within its respective jurisdiction, as part of their general prerogatives as defined in Law No. 20.488 of 1973, is authorized to set accounting and auditing standards for all companies, except for regulated companies, as described further below. In practice, provincial councils defer to the accounting and auditing standards issued by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE). FACPCE administers the Accounting and Auditing Standard-Setting Board (CENCyA), the technical and standard-setting body, which drafts standards for FACPCE approval. In turn, FACPCE-issued standards must be adopted by the provincial professional councils to become mandatory in their jurisdictions. FACPCE issued Technical Resolution (TR) No 26 in 2009, which adopts IFRS and IFRS for Small- and Medium-sized Enterprises (SMEs) by reference. Other companies are permitted to use IFRS for SMEs or Argentinean standards issued by FACPCE.

    Financial sector regulators—the Central Bank (BCRA), the National Securities Commission (CNV), and the Superintendence of Insurance (SSN)—are empowered to set sector-specific accounting rules for the companies they regulate. Listed companies are required to use IFRS in CNV Resolution No. 576 of 2010. Financial institutions are required to use IFRS, except for IFRS 9, by the BCRA Communication A6114. Insurance companies apply accounting regulations issued by the SSN and plans to adopt IFRS by 2022.

    Regarding auditing requirements, companies that prepared their financial statements using IFRS standards are required to prepare annual audited financial statements. FACPCE issued TR No. 32 in 2012, adopting ISA by reference as the applicable auditing standards for these companies. In addition, the financial sector regulators are empowered to set sector-specific audit rules for the companies they regulate. The CNV requires auditors providing audit services to entities under their respective supervision to apply ISA as adopted by FACPCE. Auditors providing services to companies regulated by the BCRA and SSN are required to apply national auditing standard, and specific auditing regulations issued by the regulators.

  • Regulation of Accountancy Profession

    The regulation of the accountancy profession in Argentina is rather decentralized given the country’s federal system. The Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE) is the national voluntary PAO of a federated system, with representatives from the 24 jurisdictions in Argentina. The Law No. 20.488 of 1973 empowers each provincial council to regulate its members, and FACPCE-issued standards and regulations must be adopted by the provincial professional councils in order to become applicable in their jurisdictions.

    In order to be registered as a public accountant, individuals only need a university accounting degree. To practice in the accountancy profession, including auditing, professionals who graduated from university need to register and obtain licenses from a provincial professional council of their jurisdiction. FACPCE, alongside its provincial councils, has the legal authority to issue rules regulating professional practice, which include the following: (i) maintaining a registry of public accountants and auditors; (ii) setting accounting and auditing standards for non-regulated companies; (iii) establishing ethical standards; (iv) implementing an investigation and discipline (I&D) system; and (v) establishing and operating a quality assurance (QA) review system.

    In addition, auditors providing services to companies regulated by the financial sector regulators—the Central Bank (BCRA), the National Securities Commission (CNV), and the Superintendence of Insurance (SSN)—are subject to specific regulations set by the respective regulator. The entities are authorized to: (i) set practical experience requirements and register auditors providing services to entities under their supervision; (ii) establish and operate a QA review system; and (iii) set sector-specific accounting and auditing standards.

  • Audit Oversight Arrangements

    There is no independent audit oversight in Argentina. Only auditors providing services to companies regulated by the financial sector regulators—the Central Bank (BCRA), the National Securities Commission (CNV), and the Superintendence of Insurance (SSN)—are subject to additional regulation set by the respective regulators. These entities are authorized to: (i) set practical experience requirements and register auditors providing services to entities under their supervision; (ii) establish and operate a quality assurance (QA) review system for auditors of regulated entities; and (iii) set sector-specific auditing standards.

    In addition, to practice in the accountancy profession, including auditing, professionals that have graduated from university need to register and obtain licenses from a provincial professional council. The Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE)—the federal umbrella organization of a federated system—alongside its provincial professional councils, has the legal authority to issue rules regulating professional practice, which include the following: ((i) maintaining a registry of public accountants and auditors; (ii) setting auditing standards for non-regulated companies; (iii) establishing ethical standards; (iv) implementing an investigation and discipline (I&D) system; and (v) establishing and operating a QA review system. FACPCE-issued standards and regulations must be adopted by the provincial councils’ councils in order to become applicable in their jurisdictions.

  • Professional Accountancy Organizations

    The Federación Argentina de Consejos Profesionales de Ciencias Económicas

    FACPCE is the national voluntary PAO of a federated system, with representatives from the 24 jurisdictions in Argentina. The FACPCE represents not only accountants but also economists, business administrators, and actuaries.

    FACPCE, alongside its provincial councils, carries out the following regulatory activities for its members: (i) maintaining a registry of public accountants and auditors; (ii) setting accounting and auditing standards for non-regulated companies; (iii) establishing ethical standards; (iv) implementing an investigation and discipline (I&D) system; and (v) establishing and operating a quality assurance review system. FACPCE-issued standards and regulations must be adopted by the provincial professional councils in order to become applicable in their jurisdictions.

    FACPCE administers the Accounting and Auditing Standard-Setting Board (CENCyA), the technical and standard-setting body, where professional volunteers work through technical commissions to develop and propose technical resolutions and pronouncements for FACPCE approval.

    In addition to being an IFAC member, FACPCE is a member of the Inter-American Association of Accountants, the Integration Committee Europe—Latin America, and a member of the Group of Latin-American Accounting Standard Setters.

  • Projects or Other Information

Adoption of International Standards

  • Quality Assurance

    In accordance with the Law No. 20.488 of 1973 each provincial council has the legal authority to issue rules regulating the professional practice of its jurisdiction, which include establishing and operating a quality assurance (QA) review system for all audits of financial statements. In practice, however, all provincial councils defer to the standards issued by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE). In turn, FACPCE-issued standards must be adopted by the provincial professional councils to be applied in their jurisdictions.

    While FACPCE has adopted ISA 220 through Technical Resolution (TR) No. 37 and ISQC 1 by the TR No. 34; as of 2018, no specific rules have been issued regarding a QA review system by FACPCE or any provincial council.

    In addition, the Central Bank (BCRA), the National Securities Commission (CNV), and the Superintendence of Insurance (SSN) may set regulations for their respective sectors. The BCRA has established a QA review system for audits of financial institutions, since 2003, through the Communication No. “A” 4018. The CNV issued the General Resolution (GR) No. 505 of 2007 as amended by the GR No. 663 of 2016, introducing a requirement for quality control standards to be in place for external auditors of listed companies. While it appears that there are QA reviews being carried out by the BCRA and CNV, it is unclear if the procedures are aligned with SMO 1 best practices.

    Current Status: Partially Adopted

  • International Education Standards

    In Argentina, the Ministry of Education (MoE), universities, each provincial council, and the financial sector regulators—the Central Bank (BCRA), the National Securities Commission (CNV), and the Superintendence of Insurance (SSN)—have a role in implementing initial professional development requirements for professional accountants, which are established in Law No. 20.488 of 1973. A university accounting degree is the only requirement in order to register as a public accountant. To practice in the accounting profession, including auditing, professionals that graduated from university need to register and obtain licenses with the professional council of their jurisdiction. In addition, auditors providing services to financial sector regulators are subject to additional practical experience requirements as established by the regulators.

    The Federación Argentina de Consejos Profesionales de Ciencias Económicas—a federation composed of 24 provincial councils—has established voluntary continuing professional development (CPD) requirements, which individuals comply with through its Professional Development Federal System (SFAP).

    Although some of the requirements of earlier versions of the IES appear to have been incorporated into the national requirements, such as holding a university accounting degree and practical experience requirements for auditors of regulated companies, it is unclear if other national requirements meet the revised (2015) requirements of the IES.

    Current Status: Partially Adopted

  • International Standards on Auditing

    While Law No. 20.488 of 1973 delegates each provincial council the authority to issue auditing standards, in practice, however, the provincial councils defer to the auditing standards issued by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE). FACPCE administers the Accounting and Auditing Standard-Setting Board (CENCyA), the technical and standard-setting body, which drafts standards for FACPCE approval. In turn, FACPCE-issued standards must be adopted by the provincial professional councils in order to be applied their jurisdictions. FACPCE has issued Technical Resolution No. 32 in 2012 adopting ISA by reference.

    Companies that prepared their financial statements using IFRS standards are required to prepare annual audited financial statements. In addition, the financial sector regulators are empowered to set sector-specific audit rules for the companies they regulate. The CNV requires auditors providing audit services to entities under their respective supervision to apply ISA as adopted by FACPCE. Auditors providing services to companies regulated by the BCRA and SSN are required to apply national auditing standard, and specific auditing regulations issued by the regulators.

    Current Status: Partially Adopted

  • Code of Ethics for Professional Accountants

    The Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE)—the national voluntary PAO of a federated system—and the provincial councils, under Law No. 20.488 of 1973, use a national Code of Ethics developed prior to 2004 and not based on the IESBA Code of Ethics. However, as reported by FACPCE not all of the provincial councils use the unified, national Code.

    In addition, FACPCE adopted the independence aspects of the IESBA Code of Ethics through Technical Resolution (TR) No 34 of 2012. The TR is mandatory only for auditors providing services to listed companies and has been officially endorsed by the National Securities Commission (CNV), through its General Resolution No 663 of 2016. No plans to adopt the current version of the IESBA Code of Ethics have been reported.

    Current Status: Not Adopted

  • International Public Sector Accounting Standards

    The Law No. 24.156 of 1992 empowers the National Accounting Office (CGN) to set public sector accounting standards. State-owned enterprises are required to apply Argentine GAAP (accrual-basis) in the preparation of their financial statements.

    Although IPSAS have not been adopted in Argentina, the CGN has reportedly started a process to develop public sector accounting standards that are harmonized with accrual-basis IPSAS. The timeframe for the adoption is not clear.

    Current Status: Not Adopted

  • Investigation and Discipline

    The Law No. 24.156 of 1992 empowers each individual provincial council the right to establish and implement investigative and disciplinary (I&D) procedures for its members. As reported by the Federación Argentina de Consejos Profesionales de Ciencias Económicas—the national voluntary PAO of a federated system—the provincial councils have established I&D systems in their provinces; however, it is not clear to what extent the provincial I&D systems comply with the best practices of SMO 6.

    Current Status: Partially Adopted

  • International Financial Reporting Standards

    Each individual provincial council within its respective jurisdiction, as part of their general prerogatives as defined in Law No. 20.488 of 1973, is authorized to set accounting and auditing standards for all companies, except for regulated companies, as described further below. In practice, provincial councils defer to the accounting standards issued by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE). FACPCE administers the Accounting and Auditing Standard-Setting Board (CENCyA), the technical and standard-setting body, which drafts standards for FACPCE approval. In turn, FACPCE-issued standards must be adopted by the provincial professional councils to become mandatory for application in their jurisdictions. FACPCE issued Technical Resolution (TR) No 26 in 2009, which adopts IFRS and IFRS for Small- and Medium-sized Enterprises (SMEs) by reference.

    Other companies are permitted to use IFRS for SMEs or Argentinean standards issued by FACPCE.

    Financial sector regulators—the Central Bank (BCRA), the National Securities Commission (CNV), and the Superintendence of Insurance (SSN)—are empowered to set sector-specific accounting rules for the companies they regulate. Listed companies are required to use IFRS in CNV Resolution No. 576 of 2010. Financial institutions are required to use IFRS, except for IFRS 9, IFRS, in accordance with the BCRA Communication A6114. Insurance companies apply accounting regulations issued by the SSN and plans to adopt IFRS by 2022.

    Current Status: Partially Adopted

Disclaimer

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Methodology

Methodology
Last updated: 08/2020
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