Chile

The statutory framework for corporate financial reporting in Chile is primarily established under Companies Law No. 18.046 of 1981, which sets out the legal requirements for the preparation and presentation of financial statements for companies incorporated in the jurisdiction. Under the law, corporations are classified as open or closed corporations. Open corporations, including listed entities and entities meeting prescribed shareholder thresholds, are subject to statutory regulation by the Financial Market Commission (CMF). Closed corporations may also voluntarily register under the CMF’s Registry of Informants and become subject to its reporting requirements.

The financial reporting framework is differentiated by entity type. For entities under the supervision of the CMF, including open corporations, listed entities, insurance companies, banks, and other financial institutions, the CMF is the principal authority responsible for establishing and overseeing financial reporting requirements. The CMF has required the application of International Financial Reporting Standards (IFRS Accounting Standards) since 2009 for entities within its supervisory perimeter. However, sector-specific requirements continue to apply to banks and certain financial institutions, reflecting the legacy framework previously administered by the Superintendent of Banks and Financial Institutions (SBIF), now integrated within the CMF. According to the IFRS Foundation, financial statements of banks and certain financial institutions are described as complying with CMF or former SBIF requirements rather than IFRS as issued.

For non-regulated entities, Law No. 13.011 of 1958 assigns the Colegio de Contadores de Chile (CCCH) responsibility for issuing accounting standards. In this capacity, the CCCH has adopted IFRS Accounting Standards and the IFRS for Small and Medium-sized Entities for application by non-regulated entities since 2013.

Statutory audit requirements are also subject to a differentiated framework. For entities under CMF supervision, the CMF has authority to establish audit requirements and requires the application of auditing standards recognized in the jurisdiction. For non-regulated entities, Law No. 13.011 of 1958 authorizes the CCCH to issue auditing standards. Historically, the Chilean Generally Accepted Auditing Standards were based on translations of standards issued by the American Institute of Certified Public Accountants, which were themselves based on International Standards on Auditing (ISA). More recently, the CCCH has moved toward direct alignment with standards issued by the International Auditing and Assurance Standards Board, with this transition becoming effective from 2025.

The regulation of the accountancy profession in Chile follows a mixed model, under which only certain segments of the profession are subject to statutory oversight, while the broader profession operates primarily under voluntary professional membership arrangements.

Only external auditors and audit firms performing services for entities under the supervision of the Financial Market Commission (CMF) are regulated at the state level. The legal framework is established principally under Law No. 18.045 of 1981 and the legal instruments governing the CMF’s supervisory powers. Under this framework, audit firms must be registered in the CMF’s Registry of External Auditors (RAE), while individual professionals acting as auditors or account inspectors must be registered in the relevant CMF register for auditors and account inspectors (RICAE). The CMF is responsible for maintaining these public registries, establishing regulatory and ethical requirements applicable to registered auditors and firms, overseeing compliance with applicable reporting and audit obligations, and administering investigative and disciplinary processes for regulated firms and professionals. The CMF also requires registered audit firms to maintain internal quality control mechanisms. However, in practice, inspections and audit reviews continue to be carried out primarily on a risk-based or suspicion-based basis rather than through a mandatory cyclical quality assurance review system.

Outside the regulated audit segment, accountancy professionals are not subject to mandatory state licensing or registration requirements. There are currently no jurisdiction-wide minimum legal requirements to practice as an accountant in Chile, nor is membership in a professional accountancy organization mandatory.

Entry into the broader profession is therefore largely determined by the higher education framework. Universities, together with the National Accreditation Commission, the Ministry of Education, and the Superintendency of Higher Education, are responsible for establishing and overseeing academic requirements applicable to professional degree programs, including accounting, under Law No. 20.370 and Law No. 20.129.

The Colegio de Contadores de Chile (CCCH) continues to operate as the principal professional accountancy organization in the jurisdiction on a voluntary membership basis. Prior to 1981, membership in the CCCH was mandatory for practicing accountants. However, amendments introduced through Law No. 3.621 of 1981 removed this requirement and transitioned the profession to a voluntary membership model. The CCCH now brings together accountants and auditors through voluntary membership and requires candidates to hold a bachelor’s degree in accounting or an equivalent qualification.

Within its legal mandate, the CCCH is responsible for issuing accounting and auditing standards for non-regulated entities, establishing ethical and professional requirements for members, defining membership criteria, administering investigative and disciplinary procedures for members, providing professional training and continuing education activities, and representing and promoting the accountancy profession at the national and international levels.

Chile does not maintain a separate standalone independent audit oversight authority distinct from the broader financial sector supervisory framework. Instead, oversight of auditors and audit firms is carried out by the Financial Market Commission (CMF) within its statutory supervisory mandate over entities operating in the securities, insurance, banking, and broader financial markets.

The CMF serves as the public authority responsible for the supervision of external auditors and audit firms providing services to entities under its control. Under Law No. 18.045 and the legal framework governing the CMF, the Commission is responsible for maintaining the Registry of External Auditors (RAE) and the register of auditors and account inspectors (RICAE), establishing applicable ethical and professional requirements, overseeing compliance by registered firms and professionals, and administering investigative and disciplinary procedures where breaches are identified. The CMF also requires registered audit firms to maintain internal quality control mechanisms.

In practice, oversight activities are conducted within the CMF’s supervisory and sanctioning framework rather than through a separate independent audit oversight board. Audit inspections and reviews are generally undertaken on a risk-based or suspicion-based basis, rather than through a mandatory cyclical inspection system covering all statutory audits.

Chile’s audit oversight arrangements are therefore best characterized as an integrated regulatory supervision model, with audit oversight embedded within the CMF’s broader public regulatory responsibilities rather than vested in an independent oversight authority with separate institutional governance.

The Colegio de Contadores de Chile (CCCH)

The Colegio de Contadores de Chile (CCCH) was established by Law No. 13.011 of 1958 and operates as a voluntary professional accountancy organization representing accountants and auditors in Chile. Its legal mandate includes issuing accounting and auditing standards for non-regulated entities, establishing ethical and professional requirements for members, defining membership criteria, administering investigative and disciplinary procedures for members, providing professional training, and representing and promoting the accountancy profession.

Membership in the CCCH is voluntary. The organization continues to serve as the principal professional body for the broader accountancy profession in Chile, particularly outside the segment of auditors subject to direct regulation by the Financial Market Commission. The CCCH maintains a national presence and provides member services through its institutional structure, technical committees, and training activities. Its public-facing activities include professional guidance, ethical resources, technical publications, courses, diplomas, and other continuing education offerings.

In addition to its national role, the CCCH is a member of the International Federation of Accountants. It also participates in regional and international professional networks, including the Asociación Interamericana de Contabilidad, the Comité de Integración Latino Europa-América (CILEA), and the Grupo Latinoamericano de Emisores de Normas de Información Financiera (GLENIF). Through these affiliations, the CCCH contributes to regional dialogue on accounting, auditing, ethics, and financial reporting developments.

A quality assurance (QA) review system has not been established on a mandatory cyclical basis for all audits of financial statements in Chile. The legal and supervisory framework is primarily administered by the Financial Market Commission (CMF) for external audit firms registered in its Registry of External Auditors. Under this framework, the CMF may inspect registered firms and take supervisory or disciplinary action where risks or concerns are identified. However, reviews continue to be undertaken on a risk-based or suspicion-based basis rather than through a mandatory cyclical review system aligned with Statement of Membership Obligations 1 requirements.

Accordingly, the jurisdiction-level framework is not fully aligned with the requirements of Statement of Membership Obligations 1 (SMO 1), as a mandatory operational QA review cycle covering all mandatory audits has not been established.

At the standards level, the Colegio de Contadores de Chile (CCCH) approved quality management standards directly aligned with the International Auditing and Assurance Standards Board pronouncements. Specifically, International Standard on Quality Management 1 (ISQM 1) and International Standard on Quality Management 2 (ISQM 2) have been adopted through the CCCH’s national standards and are effective from 2025 for applicable engagements.

ISQM 1 and ISQM 2 are therefore adopted in the jurisdiction at the standards level. However, because the external QA review framework remains limited to CMF-supervised, risk-triggered inspections rather than a mandatory cyclical review system, the jurisdiction remains Partially Adopted under the 2026 definitions.

Current Status: Partially Adopted

Initial professional development requirements for higher education in Chile are established through the national higher education framework, including Law No. 20.370 and Law No. 20.129, under which universities, the National Accreditation Commission, the Ministry of Education, and the Superintendency of Higher Education have roles in academic program oversight and quality assurance.

At the jurisdiction level, the Colegio de Contadores de Chile (CCCH) reports that universities offering accounting programs have incorporated the 2019 International Education Standards (IES). However, Chile does not have jurisdiction-wide minimum entry requirements to practice accountancy, and there are no mandatory continuing professional development requirements for accountants generally. The CCCH requires a bachelor’s degree in accounting for admission to its own membership, but that requirement does not apply across the profession.

Professionals registered with the Financial Market Commission (CMF) are subject to additional registration requirements within the CMF framework for auditors and account inspectors, but these requirements apply only to a regulated segment of the profession and do not amount to full jurisdiction-wide adoption of the IES in effect as of the time of the assessment.

Accordingly, the jurisdiction-level framework is not fully aligned with Statement of Membership Obligations 2, because the 2019 IES appear to be reflected in parts of the education framework and in some university programs, but there is no comprehensive jurisdiction-wide system covering entry, practical experience, assessment, and mandatory continuing professional development for all aspiring and professional accountants. Under the 2026 definitions, IESs are assessed as Partially Adopted.

Current Status: Partially Adopted

In accordance with Law No. 13.011 of 1958, the Colegio de Contadores de Chile (CCCH) is responsible for establishing auditing standards for non-regulated entities, while the Financial Market Commission (CMF) requires the application of those standards for entities under its supervision. Until 2024, Chilean Generally Accepted Auditing Standards were based on translations of standards issued by the American Institute of Certified Public Accountants and therefore indirectly aligned with ISA.

Effective 1 January 2025, the CCCH adopted NAGA 73, which fully and without reservation adopts the International Standards on Auditing as issued by the International Auditing and Assurance Standards Board (IAASB). This represents a direct transition from the prior AICPA-based framework to the full IAASB suite, including post-2018 revisions. As such, the exact version adopted is the current IAASB ISA suite effective in Chile from 2025, including recent revisions to ISA 315, ISA 600, ISA 220, and related standards.

Accordingly, the jurisdiction-level framework is aligned with Statement of Membership Obligations 3, as ISA in their entirety and in effect as of the time of the assessment are required for application in all mandatory audits within the relevant scope of the jurisdiction.

In addition, the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE) has also been adopted for application in Chile.

Current Status: Adopted

Ethical requirements in Chile follow a segmented framework. For auditors and audit firms subject to the supervision of the Financial Market Commission (CMF), the International Code of Ethics for Professional Accountants (including International Independence Standards) is required for firms registered in the Registry of External Auditors and for professionals registered in the Register of Auditors and Account Inspectors.

For members of the Colegio de Contadores de Chile (CCCH), Law No. 13.011 of 1958 authorizes the CCCH to establish ethical requirements. The CCCH maintains its own Code of Ethics, most recently updated in 2024, and reports that it uses the latest International Code as a supplement and reference point, with ongoing processes to monitor amendments issued by the International Ethics Standards Board for Accountants.

However, other individuals practicing as accountants in Chile who are neither CCCH members nor subject to CMF registration are not covered by a mandatory jurisdiction-wide ethical framework. As a result, the International Code is not adopted for all professional accountants in the jurisdiction.

Current Status: Partially Adopted

The Controller General of the Republic of Chile (CGRCH) is the public sector accounting standard-setter in Chile under the Constitution and Law No. 10.336. Current authoritative sources continue to indicate that Chile applies accrual-basis IPSAS modified for the local context, with the framework introduced through Resolution No. 16 of 2015 and effective from 1 January 2016.

The most recent public IFAC/CIPFA Public Sector Financial Accountability Index continues to classify Chile as using “Accrual. IPSAS Standards modified for the local context.” Based on the available public sources, the framework is best described as accrual IPSAS with national modifications rather than IPSAS as issued, and the exact IPSAS handbook year currently in force is not clearly specified in the accessible official material.

Under the 2026 definitions, accrual-basis IPSAS modified for local context are assessed as Adopted. The jurisdiction-level framework is therefore aligned with the relevant IPSAS adoption benchmark for DBR purposes.

Current Status: Adopted

Law No. 13.011 of 1958 authorizes the Colegio de Contadores de Chile (CCCH) to establish an investigative and disciplinary (I&D) system for its members, and the CCCH continues to maintain disciplinary bodies and procedures under its internal framework. Current CCCH statutes provide for sanctions including suspension of membership rights and expulsion from the register in serious cases, which is stronger than previously indicated in the older DBR text.

The Financial Market Commission (CMF) also has disciplinary and sanctioning authority over audit firms registered in the Registry of External Audit Firms and related registered professionals within its supervisory perimeter. Publicly available CMF materials confirm an operational enforcement framework, including published sanctions, but available sources do not clearly demonstrate that the CMF system fully incorporates all SMO 6 best practices.

However, Chile does not have a single I&D system that demonstrably incorporates SMO 6 requirements for all professional accountants. The CCCH’s own public and IFAC-reported information continues to indicate gaps in full alignment with SMO 6, including public transparency and other benchmark elements, while accountants outside the CCCH and CMF-regulated segments are not covered by a profession-specific I&D framework. Accordingly, the jurisdiction-level framework is not fully aligned with Statement of Membership Obligations 6 (SMO 6).

Under the 2026 definitions, because an operational I&D framework exists for some segments of the profession but not comprehensively for all professional accountants and not fully in line with SMO 6, I&D is assessed as Partially Adopted.

Current Status: Partially Adopted

International Financial Reporting Standards (IFRS) are applied in Chile under a differentiated financial reporting framework. For non-regulated entities, Law No. 13.011 of 1958 authorizes the Colegio de Contadores de Chile (CCCH) to establish accounting standards, and the CCCH adopted IFRS through Technical Bulletin No. 85 and the IFRS for Small and Medium-sized Entities Standard through Technical Bulletin No. 2, both effective from 2013.

For entities under the supervision of the Financial Market Commission (CMF), IFRS are required for issuers and other supervised non-bank entities that prepare financial statements under the IFRS framework. However, banks and certain financial institutions continue to apply the Compendium of Accounting Standards for Banks, which incorporates IFRS principles but also includes CMF-specific requirements and modifications. As noted by the IFRS Foundation, financial statements of banks and certain financial institutions in Chile are described as complying with CMF requirements rather than IFRS as issued.

Accordingly, IFRS in effect as of the time of the assessment are not required for all domestic publicly accountable entities in consolidated general purpose financial statements at the jurisdiction level. The framework is therefore not fully aligned with the 2026 benchmark for full IFRS adoption. Accordingly, IFRS is assessed as Partially Adopted.

Current Status: Partially Adopted

Relevant Organizations

Colegio de Contadores de Chile (CCCH)

Comisión para el Mercado Financiero (CMF)

Contraloría General de la República de Chile (CGR)

IFRS Foundation – Chile Jurisdictional Profile

Ministerio de Educación de Chile

Relevant Legislation

Constitution of the Republic of Chile

Law No. 10.336 – Organic Law of the Controller General of the Republic

Law No. 13.011 of 1958 – Establishing the Colegio de Contadores de Chile

Law No. 18.045 of 1981 – Securities Market Law

Law No. 18.046 of 1981 – Companies Law

Law No. 20.129 – Quality Assurance in Higher Education

Law No. 20.370 – General Education Law

Relevant Publications

CCCH – Código de Ética (2024)

CCCH – Estatutos (2024)

CCCH – NAGAs 2025 / Aprobación e Índice

CCCH – Normas NIIF / IFRS and IFRS for SMEs Resources

CMF – Compendium of Accounting Standards for Banks

CMF – Draft Compendium for External Audit Firms (2025)

IFAC / CIPFA Public Sector Financial Accountability Index – Chile