Argentina

Member Organizations

Member Organization Associate Other PAOs

  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 of 1971, as amended, and the Code of Commerce Law No. 2.637 of 1989 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 association 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 associations 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 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 developed by the CENCyA. As reported by the IFRS Foundation, more than half of the provinces and the city of Buenos Aires permit the use of IFRS in their jurisdictions for other companies.

    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. Financial institutions and listed companies are required to use IFRS in accordance the BCRA Communication A5541 and CNV Resolution No. 576 of 2010, respectively. Insurance companies apply accounting regulations issued by the SSN and plans to adopt IFRS by 2022.

    In regards to auditing requirements, companies that prepared their financial statements using IFRS standards are required to prepare annual audited financial statements and then file them with the company registrar of the local jurisdiction. FACPCE has 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. Both the CNV and BCRA require 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 SSN are required to apply auditing regulations issued by the SSN.

  • 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 23 provincial associations and one autonomous city equivalent to a province—Buenos Aires—sitting on the council. The Law No. 20.488 of 1973 empowers each provincial association to regulate its own 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 register as a public accountant, individuals only need a university accounting degree. To practice in the accountancy profession, including auditing, professionals that have graduated from university need to register and obtain licenses from a provincial professional association of their jurisdiction. FACPCE, alongside its provincial associations, 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 for professionals.

  • 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 association. The Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE)—the federal umbrella organization of a federated system—alongside its provincial professional associations, 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 associations’ 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 23 provincial associations and one autonomous city equivalent to a province—Buenos Aires—sitting on the council. The FACPCE represents not only accountants, but also economists, business administrators, and actuaries.

    FACPCE, alongside its provincial associations, 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 association has the legal authority to issue rules regulating the professional practice of its own members, which include establishing and operating a quality assurance (QA) review system for all audits of financial statements. In practice, however, all provincial associations 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 in order 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 association.

    In addition, the Central Bank (BCRA), the National Securities Commission (CNV) and the Superintendence of Insurance (SSN) may set regulation 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, Science, and Technology (MoE), universities, each provincial association, 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 association 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 associations—has developed 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 association the authority to issue auditing standards, in practice, however, the provincial associations 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.

    The financial sector regulators—the Central Bank (BCRA), the National Securities Commission (CNV) and the Superintendence of Insurance (SSN)—are empowered to set sector-specific audit rules for the companies they regulate. Both the CNV and BCRA require 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 SSN are required to apply auditing regulation issued by the SSN.

    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 associations, under the 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 associations 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 association the right to establish 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 associations 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 association 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 associations 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 developed by the CENCyA. As reported by the IFRS Foundation, more than half of the provinces and the city of Buenos Aires permit the use of IFRS in their jurisdictions for other companies.

    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. Financial institutions and listed companies are required to use IFRS in accordance the BCRA Communication A5541 and CNV Resolution No. 576 of 2010, respectively. Insurance companies apply accounting regulations issued by the SSN and plans to adopt IFRS by 2022.

    Current Status: Partially Adopted

Disclaimer

IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.

Methodology

Methodology
Last updated: 06/2019
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