Colombia

The financial reporting framework in Colombia is established under the Code of Commerce of 1971 and Law No. 43 of 1990. The Code establishes the obligation for companies to maintain books of account and provides the basic legal framework for accounting.

The Law establishes a general legal framework authorizing the government to issue accounting and auditing standards and to regulate the practice of professional accountants. Law No. 1314 of 2009 authorizes the Ministry of Commerce, Industry and Tourism (MCIT) and the Ministry of Finance and Public Credit, acting jointly, to set accounting and auditing standards for all companies. The Technical Council of Public Accountancy (CTCP), an entity under the authority of MCIT, prepares proposals for the ministries relating to new standards on accounting and auditing. In 2015, the regulators adopted International Financial Reporting Standards (IFRS), International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs), the International Code of Ethics for Professional Accountants (including International Independence Standards), and International Standards on Auditing (ISA) for all professional accountants. These standards are updated and amended on a regular basis, considering their availability in Spanish and the due process that the CTCP and regulatory ministries must complete to issue the corresponding updated decrees.

In Colombia, in accordance with the Code of Commerce of 1971 and Law No. 43 of 1990, all companies with the following characteristics must appoint a statutory auditor: (i) companies with assets higher than 5,000 minimum legal wages; (ii) companies with income higher than 3,000 minimum legal wages; and (iii) international branches and stock companies. Colombian regulation requires companies to appoint a statutory auditor (revisor fiscal) with broad oversight responsibilities. The statutory auditor performs annual audits and is legally required to perform various activities that do not constitute the audit of financial statements.

The profession is regulated at the state level in Colombia by Law No. 43 of 1990. This Law establishes initial professional development and ethical requirements, as well as investigative and disciplinary procedures. A university accounting degree and one year of practical experience are the only requirements to practice the profession in Colombia. No law or regulation currently exists defining continuing professional development requirements or stipulating that individuals must pass a qualification examination prior to practicing.

The Law created the Central Board of Accountancy (JCC), under the Ministry of Commerce, Industry and Tourism, to supervise the profession. The JCC’s responsibilities include: (i) maintaining a registry of professional accountants; (ii) establishing and operating a quality assurance review system for audits; and (iii) implementing an investigation and discipline system for the profession.

In addition, professionals may voluntarily join a professional accountancy organization (PAO) and be self-regulated through the membership requirements of the PAO. The Instituto Nacional de Contadores Públicos de Colombia (INCP) unites professional accountants through voluntary membership and requires candidates to hold a JCC-issued license and a bachelor’s degree in accounting to be considered for membership. Although, legally, the INCP cannot adjudicate or impose disciplinary sanctions on its members’ professional conduct, the INCP’s bylaws establish a requirement to follow a Code of Ethics, with sanctions that may affect membership rights in cases of non-compliance. The INCP promotes the adoption and implementation of international standards, represents and advances the accountancy profession, develops training activities, and promotes improvements to professional practice.

The Central Board of Accountancy (JCC), under the Ministry of Commerce, Industry and Tourism, as established under Law No. 1314 of 2009, is responsible for supervising the audit profession in Colombia. The JCC’s responsibilities include: (i) maintaining a registry of professional accountants (including auditors); (ii) establishing and operating a quality assurance review system for audits; and (iii) implementing an investigation and discipline system for the profession. The JCC is not a member of the International Forum of Independent Audit Regulators (IFIAR).

The Instituto Nacional de Contadores Públicos de Colombia (INCP)

The INCP, established in 1951, unites professional accountants and firms on a voluntary basis. The INCP promotes the adoption and implementation of international standards, represents and advances the accountancy profession, develops training activities, and promotes improvements to professional practice.

Others PAOs

In Colombia, there are eight other professional accountancy organizations. These associations, alongside the INCP, have established the National Committee of Professional Associations, aimed at building and strengthening the profession in Colombia. Its work is organized around three strategic pillars: education, training, and certification; profiling of the profession and its economic structure; and professional governance and stakeholder engagement.

In accordance with Law No. 1314 of 2009, the Central Board of Accountancy (JCC), under the Ministry of Commerce, Industry and Tourism, is responsible for establishing a quality assurance (QA) review system for all mandatory audits. Accordingly, since 2017, the JCC has established and operated a QA review system. Based on information reported by the Instituto Nacional de Contadores Públicos de Colombia (INCP) and external assessments, the peer review system mostly aligns with the Statement of Membership Obligations (SMO) 1 requirements, although policies and procedures related to inspection cycles may vary among firms (i.e., reviews may not take place at least every six years, and every three years for audits of public interest entities).

In addition, the Ministry of Commerce, Industry and Tourism and the Ministry of Finance and Public Credit have adopted International Standard on Quality Control (ISQC) 1 and International Standard on Auditing (ISA) 220 through Decree No. 2420 of 2015, which is updated periodically and published in the Official Gazette for application in all audits. The current assurance framework in force is based on Annex 4-2019 to Decree No. 2420 of 2015.

The Technical Council of Public Accountancy (CTCP) has recommended an updated Annex 4-2025 to incorporate International Standard on Quality Management (ISQM) 1, ISQM 2, and revised ISA 220, with application proposed for reporting periods beginning on or after 1 January 2027, and early voluntary application permitted. Accordingly, while the QA review system is operational, the latest quality management standards have not yet been made effective in the jurisdiction.

Current Status: Partially Adopted

In accordance with Law No. 43 of 1990, professional accountants are required to hold a university accounting degree and complete one year of practical experience in order to practice. The Ministry of Education and universities are responsible for the curriculum and qualification requirements of professional accountants.

Due to the legal principle of university autonomy in Colombia, the International Education Standards (IES) are used as a reference framework in the design of accounting education programs; however, their adoption is not mandatory.

Under the Ministry of Commerce, Industry and Tourism, the Central Board of Accountancy (JCC) has a role in monitoring practical experience and issuing licenses to practice.

A limited number of IES requirements appear to be reflected in national requirements, particularly the university accounting degree and practical experience requirements. However, it does not appear that broader national requirements exist for initial professional development (IPD), formal assessment, or continuing professional development (CPD) that demonstrably incorporate the IES in effect as of the time of the assessment.

Current Status: Partially Adopted

Law No. 1314 of 2009 empowers the Ministry of Commerce, Industry and Tourism and the Ministry of Finance and Public Credit, acting jointly, to set auditing standards for all companies. The regulators have adopted International Standards on Auditing (ISA) through Decree No. 2420 of 2015, which is updated periodically and published in the Official Gazette for application in all mandatory audits. The 2018 ISA are currently effective.

The regulators are currently in the process of updating the national framework through the proposed Annex 4-2025 to Decree No. 2420 of 2015 to incorporate the 2023–2024 International Standards on Auditing Handbook, including revised ISA 600, ISA 315, ISA 540, International Standard on Quality Management (ISQM) 1, ISQM 2, and revised ISA 220. Based on the current recommendation issued by the Technical Council of Public Accountancy (CTCP), the updated standards are proposed to become mandatory for reporting periods beginning on or after 1 January 2027, with early application permitted upon issuance of the final decree.

Accordingly, the latest International Standards on Auditing in effect as of the time of the assessment have not yet been fully adopted and made effective in the jurisdiction.

Current Status: Partially Adopted

In Colombia, Law No. 43 of 1990 establishes ethical requirements for professional accountants in line with the International Code of Ethics for Professional Accountants (including International Independence Standards). Subsequently, the Ministry of Commerce, Industry and Tourism and the Ministry of Finance and Public Credit were authorized to update ethical requirements for all professional accountants in accordance with Law No. 1314 of 2009.

The 2018 International Code of Ethics for Professional Accountants (including International Independence Standards) is currently effective in the jurisdiction.

The regulators are currently in the process of updating the national framework through the proposed Annex 4-2025 to Decree No. 2420 of 2015 to incorporate the 2021 International Code of Ethics for Professional Accountants (including International Independence Standards). Based on the current recommendation issued by the Technical Council of Public Accountancy (CTCP), the updated Code is proposed to become mandatory for reporting periods beginning on or after 1 January 2027, with early application permitted upon issuance of the final decree.

Accordingly, the version of the Code in effect as of the time of the assessment has not yet been fully adopted in the jurisdiction.

Current Status: Partially Adopted

The Constitution of Colombia establishes the General Accounting Office (CGN) as the accounting standard-setter for the public sector.

The CGN has applied accrual-basis International Public Sector Accounting Standards (IPSAS) since 2015 through the Public Accounting Regime and currently requires the application of the 2021 International Public Sector Accounting Standards through Resolution 331 of 2022, effective from 1 January 2023.

Accordingly, accrual-basis International Public Sector Accounting Standards are adopted for application by public sector entities in the jurisdiction.

Current Status: Adopted

In accordance with Law No. 43 of 1990, the Disciplinary Court of the Central Board of Accountancy (JCC) is responsible for investigating and disciplining professional accountants in Colombia. The investigative and disciplinary (I&D) system is established and operational and functions primarily on a complaints-based basis.

Based on information available from the Instituto Nacional de Contadores Públicos de Colombia (INCP)’s 2025 Statement of Membership Obligations (SMO) Action Plan and external assessments, the procedures mostly align with SMO 6 requirements. However, a formal connection between the results of quality assurance (QA) reviews and the initiation of disciplinary proceedings has not yet been established.

Accordingly, while an investigative and disciplinary system is established and operational for professional accountants, it does not yet fully incorporate all the requirements of SMO 6.

Current Status: Partially Adopted

In accordance with Law No. 1314 of 2009, the Ministry of Commerce, Industry and Tourism and the Ministry of Finance and Public Credit, acting jointly, are responsible for setting corporate accounting standards for all companies.

The regulators issued Decree No. 2784 of 2012, as amended by Decree No. 2131 of 2016, adopting International Financial Reporting Standards (IFRS) and the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). IFRS are required for Group 1 entities, while IFRS for SMEs apply to Group 2 entities.

The national framework continues to be updated periodically through regulatory decrees. Most recently, Decree No. 1611 of 2022 incorporated amendments issued by the International Accounting Standards Board (IASB) during 2021, effective from 1 January 2024, and Decree No. 1271 of 2024 incorporated International Financial Reporting Standard (IFRS) 17 for the insurance sector, effective from 1 January 2027.

Accordingly, while International Financial Reporting Standards are adopted in the jurisdiction, the latest standards and amendments in effect as of the time of the assessment have not yet been fully incorporated for application by all relevant public interest entities.

Current Status: Partially Adopted

Relevant Organizations

• Central Board of Accountancy (JCC)
• General Accounting Office (CGN)
• Instituto Nacional de Contadores Públicos de Colombia (INCP)
• Ministry of Commerce, Industry and Tourism (MCIT)
• Ministry of Finance and Public Credit (MoF)

Relevant Legislation

• Central Board of Accountancy (JCC), Resolution 667 of 2017
• Code of Commerce of 1971 (Código de Comercio)
• Decree No. 2784 of 2012
• Decree No. 2420 of 2015
• Decree No. 302 of 2015
• General Accounting Office (CGN), Resolution No. 533 of 2015
• Law No. 43 of 1990
• Law No. 1314 of 2009

Relevant Publications

• INCP, SMO Action Plan, 2025.
• IFRS Foundation, "IFRS Application Around the World, Jurisdictional Profile: Colombia," June 2016.
• World Bank, Report on the Observance of Standards and Codes (ROSC), Accounting and Auditing: Colombia, November 2021.