The financial reporting framework in Peru is established by the Code of Commerce of 1902 and the Company Law of 1997. The Code of Commerce establishes the obligation for companies to keep books of accounts and provides...

The financial reporting framework in Peru is established by the Code of Commerce of 1902 and the Company Law of 1997. The Code of Commerce establishes the obligation for companies to keep books of accounts and provides the basic legal framework for accounting. The Company Law requires that financial statements be prepared in accordance with generally accepted accounting principles in Peru.

Law No. 28708 of 1987 On the National Accounting System established the Accounting Standards Board (CNC)—under the auspices of the National Administration of Public Accounting, which is part of the Ministry of Economy and Finance (MEF)—as the organization responsible for setting accounting standards for all non-regulated companies. The CNC is headed by a representative of the MEF and is composed of a representative from each of the financial and other sector regulators (nine in total), including the Junta de Decanos de Colegios de Contadores Públicos de Perú (JDCCPP).

In accordance with Law No. 29720 of 2011, all corporations with annual revenues or assets of 3,000 tax reference units or more must present their audited financial statements to the Superintendence of Security Markets (SMV). Setting auditing standards for all types of audits is delegated to the Departmental Associations of Public Accountants in accordance with Law No. 28951 of 2007. In practice, however, all Departmental Associations defer to the auditing standards issued by the JDCCPP. JDCCPP-issued standards must be adopted by the Departmental Associations to become mandatory for application in their jurisdictions.

Listed companies are regulated by the SMV. Banks, insurance, and pension companies are regulated by the Superintendence of Banking, Insurance, and Pensions (SBS). Regulated companies are required to prepare annual audited financial statements in accordance with the accounting standards established by the SMV and SBS, respectively. The SMV has required the use of IFRS for financial statement preparation through Resolution No. 011 of 2012, as amended, for its regulated entities. The SBS requires application of IFRS as endorsed by the CNC. In addition, both regulators maintain a registry of audit firms authorized to conduct audits for companies under their supervision.

According to Law No. 28951 of 2007, professional accountants in Peru are regulated in each of the Departments, which are regional jurisdictions within the country, by the Departmental Associations of Public Accountants...

According to Law No. 28951 of 2007, professional accountants in Peru are regulated in each of the Departments, which are regional jurisdictions within the country, by the Departmental Associations of Public Accountants. Individual accountants and firms are required to be licensed by the respective Departmental Association where they will practice. The Deans of the Departmental Associations sit on the Junta de Decanos de Colegios de Contadores Públicos de Perú (JDCCPP), which is the national board of the Departmental Associations.

Law No. 28951 of 2007 grants the Departmental Associations the authority to determine the licensing requirements for, and issuing licenses to, professional accountants and auditing firms in their respective departments. Also, the Departmental Associations are empowered to set auditing standards and ethical requirements, carry out investigation and disciplinary processes, and maintain a registry of public accountants in each of their respective jurisdictions. The Departmental Associations collaborate through the JDCCPP to set standards that are adopted in each Department.

There are two types of designation for accounting professionals—Public Accountant and Certified Independent Auditor. According to the law, a university accounting degree is the only requirement to be licensed as professional accountant. Universities and the Ministry of Education set accounting curriculum requirements.

To become a Certified Independent Auditor, the Departmental Associations require an additional practical experience requirement of five years, or three years plus a specialization acquired in an approved auditing course. Continuing professional development is not required by the Departmental Associations.

Empowered by Law No. 25892 of 1992, the JDCCPP issues opinions on university plans for their accounting curricula and is authorized to certify and recertify Public Accountants at the national level. This is a voluntary certification to enable national mobility of professionals. For someone aspiring to the national level certification, in addition to meeting the requirements for being qualified as a Certified Independent Auditor, the JDCCPP requires attendance at an ethics seminar and passing a final uniform exam of competencies. To maintain the certification, they also have to meet annual continuing professional development requirements.

In addition, auditors providing services to regulated entities must be registered with the Superintendence of Security Markets and the Superintendence of Banking, Insurance, and Pensions, both of which have adopted assurance quality control procedures.

No independent audit oversight arrangement exists in Peru. Law No. 28951 of 2007 does, however, authorize the Departmental Associations of Public Accountants to set auditing standards and ethical requirements, carry out...

No independent audit oversight arrangement exists in Peru. Law No. 28951 of 2007 does, however, authorize the Departmental Associations of Public Accountants to set auditing standards and ethical requirements, carry out investigation and disciplinary processes, and maintain a registry of public accountants and firms in each of their respective jurisdictions.

In addition, the Superintendence of Security Markets and the Superintendence of Banking, Insurance, and Pensions maintain registries and have practice review procedures for auditors who provide services for entities under their respective supervision.

The Junta de Decanos de Colegios de Contadores Públicos de Perú (JDCCPP) was established by Law No. 25892 of 1992 as an umbrella organization, with mandatory membership, uniting representatives from the 24 Departmental...

The Junta de Decanos de Colegios de Contadores Públicos de Perú (JDCCPP) was established by Law No. 25892 of 1992 as an umbrella organization, with mandatory membership, uniting representatives from the 24 Departmental Associations of Public Accountants. The Constitutional Province of Callao also sits on the JDCCPP’s Council.

The JDCCPP is the representative body of the public accounting profession domestically and internationally. It issues opinions on the plans of university curricula and is authorized to certify and recertify Public Accountants at the national level.

Setting auditing standards and ethical requirements has been delegated to the Departmental Associations of Public Accountants in accordance with Law No. 28951 of 2007. In practice, however, all Departmental Associations defer to the national technical commissions established by the JDCCPP to set and adopt the standards. The standards issued by the JDCCPP are adopted by the Departmental Associations to become mandatory for application in their jurisdictions.

The JDCCPP is a member of the Inter-American Association of Accountants.

No information is available on development projects or initiatives in Peru...

No information is available on development projects or initiatives in Peru.

There is no requirement for quality assurance (QA) reviews for audits of financial statements in Peru. Law No. 28951 authorizes the Departmental Associations of Public Accountants to regulate the auditors and firms in...

There is no requirement for quality assurance (QA) reviews for audits of financial statements in Peru. Law No. 28951 authorizes the Departmental Associations of Public Accountants to regulate the auditors and firms in their respective jurisdictions. As of 2016, however, no QA system had been established.

The Superintendence of Security Markets and the Superintendence of Banking, Insurance, and Pensions have practice reviews procedures for auditors who provide services for entities under their respective supervision. The Junta de Decanos de Colegios de Contadores Públicos de Perú states, in its 2016 SMO Action Plan, that these quality control procedures are not in line with SMO 1 requirements.

Current Status: Not Adopted

Law No. 28951 of 2007 empowers the Departmental Associations of Public Accountants to regulate professional accountants. To practice the profession, individual public accountants must be members of their respective...

Law No. 28951 of 2007 empowers the Departmental Associations of Public Accountants to regulate professional accountants. To practice the profession, individual public accountants must be members of their respective Departmental Associations.

A university accounting degree is the only requirement to be licensed as a professional accountant. Universities and the Ministry of Education set accounting curriculum requirements. To become a Certified Independent Auditor, an additional practical experience requirement of five years is required, or three years plus a specialization acquired by taking an approved auditing course. Mandatory continuing professional development (CPD) is not required by the Departmental Associations.

The Junta de Decanos de Colegios de Contadores Públicos de Perú (JDCCPP) is empowered to certify and recertify Public Accountants at the national level. This is a voluntary certification to enable national mobility of professionals, according to Law No. 28951 of 2007. For someone aspiring to the national level certification, in addition to meeting the requirements for a Certified Independent Auditor, the JDCCPP requires attendance at an ethics seminar and passing a final uniform exam of competencies. They also need to meet annual CPD requirements to maintain the certification.

Current Status: Partially Adopted

Law No. 28951 of 2007 grants authority to the Departmental Associations of Public Accountants to set auditing standards for all audits. The Junta de Decanos de Colegios de Contadores Públicos de Perú (JDCCPP) has...

Law No. 28951 of 2007 grants authority to the Departmental Associations of Public Accountants to set auditing standards for all audits. The Junta de Decanos de Colegios de Contadores Públicos de Perú (JDCCPP) has created national technical commissions to set and adopt standards, which are in turn adopted and required in each Departmental Association.

The JDCCPP has been adopting ISA since 2006, and the most recent Resolution No. 50 of 2014 requires ISA version 2009 to be applied by all auditors. The JDCCPP is waiting for the 2013 Spanish translation of ISA to be completed before it can proceed with its approval and immediate publication for member use.

Current Status: Adopted

Law No. 28951 of 2007 grants authority to the Departmental Associations of Public Accountants to set ethical requirements for their members. The Junta de Decanos de Colegios de Contadores Públicos de Perú (JDCCPP) has...

Law No. 28951 of 2007 grants authority to the Departmental Associations of Public Accountants to set ethical requirements for their members. The Junta de Decanos de Colegios de Contadores Públicos de Perú (JDCCPP) has created national technical commissions to adopt ethical standards, which are in turn adopted and required in each Departmental Association.

The JDCCPP has adopted the IESBA Code of Ethics (2014 version) by Board Resolution No. 009 of 2015. In turn, each Departmental Association has been responsible for adopting the Code in its jurisdiction.

Current Status: Adopted

According to Law No. 28708 On the National System of Accounting, the National Direction of Public Accounting (DGCP) under the Ministry of Economy and Finance establishes public sector accounting standards. The DGCP has...

According to Law No. 28708 On the National System of Accounting, the National Direction of Public Accounting (DGCP) under the Ministry of Economy and Finance establishes public sector accounting standards. The DGCP has adopted IPSAS (2011 version) through Resolution Nº 011-2013-EF/51.01.

As of 2016, IFAC does not have an agreement with the DGCP for the reproduction and distribution of the Spanish translation of IPSAS in Peru.

Current Status: Adopted

Law No. 28951 of 2007 empowers the Departmental Associations of Public Accountants to investigate and discipline their members. The Law requires the establishment of an Honor Tribunal in each association. Article 10 of...

Law No. 28951 of 2007 empowers the Departmental Associations of Public Accountants to investigate and discipline their members. The Law requires the establishment of an Honor Tribunal in each association. Article 10 of the Law specifically addresses the requirement of the Departmental Associations to maintain and implement disciplinary sanctions for ethics breaches in accordance with each association’s by-laws. Each association is responsible for maintaining an Ethics Committee for receiving and resolving allegations or complaints of malpractice. The Honor Tribunal resolves appeals.

The Junta de Decanos de Colegios de Contadores Públicos de Perú (JDCCPP) has created national technical commissions to adopt investigation and disciplinary standards, which are in turn adopted and required in each Departmental Association. The JDCCPP issued Resolution No. 014 in 2015 adopting the SMO 6 requirements and states in its SMO Action Plan that the requirements are in line with the SMO 6 requirements.

Current Status: Adopted

In accordance with Law No. 28708 of 1987 On the National Accounting System, the Accounting Standards Board (CNC)—which operates under the auspices of the National Direction of Public Accounting (DGCP), which is part of...

In accordance with Law No. 28708 of 1987 On the National Accounting System, the Accounting Standards Board (CNC)—which operates under the auspices of the National Direction of Public Accounting (DGCP), which is part of the Ministry of Economy and Finance—is responsible for setting accounting standards for all non-regulated companies. The DGCP has adopted IFRS (version 2015) through Resolution Nº 059-2015-EF/30 of 2015. In addition, by Resolution No. 045-2010-EF-94 of 2010, the CNC adopted IFRS for small- and medium-sized entities in 2011.

In addition, the Superintendence of Security Markets (SMV) and the Superintendence of Banking, Insurance, and Pensions (SBS) have the authority to set accounting standards for regulated entities. The SMV has required IFRS through Resolution No. 011 of 2012, as amended, for its regulated entities. The SBS requires application of IFRS as endorsed by the CNC.

Current Status: Adopted

Relevant OrganizationsJunta de Decanos de Colegios de Contadores Públicos de Perú (JDCCPP)Consejo Normativo de Contabilidad (MEF)Superintendente de Bancos, Seguros, y AFP (SBS) Superintendencia del Mercado de Valores...

Relevant Organizations

• Junta de Decanos de Colegios de Contadores Públicos de Perú (JDCCPP)
• Consejo Normativo de Contabilidad (MEF)
• Superintendente de Bancos, Seguros, y AFP (SBS)
• Superintendencia del Mercado de Valores (SMV)

Relevant Legislation

• Accounting Standards Board (CNC) Resolutions. Ley Nº 28951 de Actualización de la Ley N° 13253, de Profesionalización del Contador Público y de Creación de Los Colegios De Contadores Públicos
• Ley Nº 28708 Ley General del Sistema Nacional de Contabilidad

Relevant Publications

• JDCCPP, SMO Action Plan, May 2016.
• IFRS Foundation, “IFRS Application Around the World—Jurisdictional Profile: Peru,” July 2014.
• World Bank, “Report on the Observance of Standards and Codes: Accounting and Auditing—Peru,” 2004.