Guatemala

The financial reporting framework in Guatemala is primarily established under the Code of Commerce of 1970, which requires all companies to maintain accounting records and prepare financial statements in accordance with generally accepted accounting principles. However, the Code does not define these principles nor explicitly mandate the use of International Financial Reporting Standards (IFRS).

In practice, financial reporting is influenced by the Tax Legislation Decree No. 10 of 2012, which requires medium- and large-sized entities to submit annual audited financial statements for tax purposes. These financial statements are prepared using tax-based rules and are considered special purpose financial statements. The Superintendencia de Administración Tributaria (SAT), acting as the tax authority, permits entities to prepare financial statements using IFRS or IFRS for Small- and Medium-sized Entities (IFRS for SMEs) on a voluntary basis.

Decree No. 72 of 2001 establishes the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG) as the legally recognized professional accountancy organization with mandatory membership and grants it authority to set accounting and auditing standards for its members. The CCPAG adopted IFRS in 2007 and IFRS for SMEs in 2010. However, these resolutions do not constitute legally binding requirements at the jurisdiction level.

Sector-specific regulators impose additional financial reporting requirements. The Superintendence of Banks (SIB), under the Banks Act No. 19 of 2002, requires banks, financial institutions, and insurance entities to prepare financial statements in accordance with its regulatory accounting manual, which differs in certain respects from IFRS. Where the manual does not provide guidance, IFRS are applied. Entities within the financial system above specified thresholds are required to present audited financial statements prepared in accordance with IFRS or IFRS for SMEs.

Entities listed on the Securities and Commodities Market (BVNSA) are permitted, but not required, to apply IFRS.

Statutory audit requirements are established through sectoral regulation. The SAT and the BVNSA require audits for entities under their supervision, while the SIB mandates audits for regulated financial institutions. Audits are required to be conducted in accordance with standards issued by the CCPAG. The CCPAG adopted International Standards on Auditing (ISA) in 2007 with an ongoing adoption mechanism for subsequent revisions as issued by the International Auditing and Assurance Standards Board (IAASB). In addition, the SIB requires the application of ISA as issued by the IAASB for entities under its supervision.

Overall, the statutory framework in Guatemala reflects a mixed system in which international standards are adopted by the professional accountancy organization and applied in practice across key sectors, while legal requirements at the jurisdiction level remain fragmented and, in many cases, do not mandate the application of IFRS for general purpose financial statements.

The accountancy profession in Guatemala is regulated primarily through a professional self-regulatory model grounded in the Constitution and the Law on Mandatory Professional Membership, Decree No. 72-2001. Under this framework, university-trained professionals must hold active membership in the relevant professional association in order to exercise their profession legally in Guatemala. For the accountancy profession, the legally recognized professional accountancy organization is the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG).

The profession comprises public accountants and auditors. Entry into the profession is linked to possession of a university degree at licenciatura level or equivalent recognized qualification and compliance with mandatory professional membership requirements. Decree No. 72-2001 provides that legal practice of a profession requires active membership status, including compliance with annual professional credits established by the respective professional body.

CCPAG was established within this mandatory professional membership framework and serves as the principal regulatory body for public accountants and auditors at the professional level. Its responsibilities include maintaining the register of members, establishing professional requirements for active membership, issuing accounting, auditing, and ethical standards for its members, providing professional development activities, administering investigative and disciplinary processes through its internal governance bodies, and supporting the development of a quality assurance framework.

Continuing professional development requirements are now embedded more clearly in the regulatory framework than in prior assessments. Decree No. 72-2001 requires professionals to complete annual professional credits to maintain active membership status, and CCPAG has operationalized this requirement through its Academic Credits Regulation. The regulation applies to all members, establishes the Comisión de Actualización Profesional Continua, and requires CCPAG to offer an annual training plan that includes a minimum number of free training hours for members.

In addition to professional regulation by CCPAG, certain regulators maintain separate registries for professionals providing services in regulated sectors. The Superintendencia de Administración Tributaria (SAT) maintains a register of public accountants, auditors, and accounting technicians through its virtual platform for tax administration purposes. The Superintendence of Banks (SIB) also maintains a registry of external auditors authorized to provide services to entities under its supervision. These arrangements indicate that, while entry to the profession is governed through mandatory professional membership, additional registration requirements apply in specific regulated sectors.

Overall, the regulatory framework reflects a profession regulated principally through mandatory professional membership, with CCPAG serving as the central professional body and sectoral regulators imposing supplementary registration and oversight requirements in areas under their supervision.

There is no independent public audit oversight authority in Guatemala responsible for the regulation and supervision of auditors and audit firms.

Oversight of the audit profession is exercised primarily through a professional self-regulatory model led by the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG). CCPAG is responsible for regulating its members, including establishing professional standards, administering investigative and disciplinary procedures, and supporting the development of quality assurance mechanisms within the profession.

In the absence of an independent oversight body, certain regulatory authorities perform limited supervisory functions within their respective sectors. The Superintendencia de Administración Tributaria (SAT) requires audited financial statements for specific taxpayers and maintains a registry of professionals authorized to provide such services. The Superintendence of Banks (SIB) oversees auditors engaged with regulated financial institutions and maintains a registry of approved external auditors. Entities operating within the financial system are subject to supervisory requirements imposed by the SIB, including compliance with applicable auditing standards and reporting obligations.

The Securities and Commodities Market (BVNSA) also maintains registries of auditors and audit firms providing services to entities under its supervision. In practice, auditors serving regulated entities must meet sector-specific registration requirements in addition to maintaining active membership in CCPAG.

Overall, the audit oversight framework in Guatemala is characterized by the absence of an independent public oversight authority and reliance on a combination of professional self-regulation and sectoral supervision by regulatory bodies.

The Colegio de Contadores Públicos y Auditores (CCPAG)

The Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG) is the legally recognized professional accountancy organization established under Decree No. 72-2001 within the framework of mandatory professional membership in Guatemala. It represents public accountants and auditors and is the principal body responsible for regulating the profession at the professional level.

Membership in CCPAG is mandatory for all individuals practicing as professional accountants and auditors in the jurisdiction. CCPAG is responsible for maintaining the registry of members, establishing membership requirements, and enforcing compliance with professional obligations necessary to retain active membership status.

CCPAG plays a central role in the development and oversight of the profession. Its responsibilities include issuing accounting, auditing, and ethical standards for its members; establishing and administering continuing professional development requirements; conducting investigative and disciplinary procedures; supporting the development of a quality assurance review system; and providing training and capacity-building programs. CCPAG also contributes to the advancement of the profession through technical guidance, stakeholder engagement, and participation in regulatory discussions.

At the international level, CCPAG is an Associate Member of the International Federation of Accountants and is a member of the Inter-American Accounting Association, the Group of Latin American Accounting Standard Setters, and the Comité de Integración Latino Europa-América.

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA)

The Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) is a voluntary professional accountancy organization established in 1968 that represents and promotes the interests of the accountancy profession in Guatemala.

Membership in IGCPA is voluntary; however, candidates are required to hold active membership in CCPAG in order to join. IGCPA focuses on supporting the development of the profession through continuing education, technical training, and the dissemination of best practices in accounting and auditing. It also engages with stakeholders to promote high-quality professional standards and contributes to the development of professional capacity in the jurisdiction.

IGCPA is a Member of the International Federation of Accountants and is also a member of the Inter-American Accounting Association.

There is no legal requirement for a comprehensive quality assurance (QA) review system covering all audits of financial statements in Guatemala.

At the jurisdiction level, the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG) is authorized under Decree No. 72-2001 to establish and implement a QA review system for its members. CCPAG has developed a regulatory framework for quality control reviews and continues to take steps toward operationalizing a QA system, including establishing a dedicated oversight body and strengthening the registry of audit firms. However, there is no evidence that a fully operational, cycle-based QA review system is in place and functioning for all mandatory audits.

Sectoral regulators maintain limited supervisory arrangements. The Superintendence of Banks (SIB) requires registration of external auditors for regulated entities and may conduct reviews on a risk basis. The Superintendencia de Administración Tributaria (SAT) requires audited financial statements for certain entities; however, no comprehensive QA review system aligned with Statement of Membership Obligations 1 has been identified at the jurisdiction level.

Accordingly, while elements of a QA framework exist and are being further developed, the system is not yet fully operational and does not demonstrate alignment with all the requirements of SMO 1 for all mandatory audits. The jurisdiction is therefore assessed as Partially Adopted.

With respect to quality management standards, there is no evidence that International Standard on Quality Management 1 and International Standard on Quality Management 2 have been formally adopted and made effective in the jurisdiction.

Current Status: Partially Adopted

Under the Law on Mandatory Professional Membership, Decree No. 72-2001, individuals must hold active membership in the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG) to practice as professional accountants and auditors in Guatemala. Entry to the profession is based on obtaining a university degree in accounting or a related field. Universities are responsible for establishing academic curricula and typically require practical experience as part of graduation requirements.

Continuing professional development requirements are established by CCPAG. Members are required to complete annual academic credits to maintain active membership status, and CCPAG administers this requirement through its Academic Credits Regulation and training programs.

CCPAG adopted International Education Standards (IES) 1–8 in 2015 based on the version in force at that time. However, CCPAG does not have legal authority over universities or other education providers, and therefore the IES are not fully embedded in binding jurisdiction-level requirements for all aspiring and professional accountants.

Accordingly, while elements of initial professional development and continuing professional development are in place, the jurisdiction does not demonstrate full alignment with the International Education Standards in effect as of the time of the assessment. The jurisdiction is therefore assessed as Partially Adopted.

Current Status: Partially Adopted

The Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG) is authorized under Decree No. 72-2001 to set auditing standards for its members. In December 2007, CCPAG adopted International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB), and the resolution provides for the ongoing adoption of subsequent revisions and updates as issued, with the IAASB effective dates. IFAC continues to describe Guatemala’s framework on this basis.

At the jurisdiction level, the Superintendencia de Administración Tributaria and the Securities and Commodities Market require audits for entities under their supervision to be conducted in accordance with standards issued by CCPAG. The Superintendence of Banks also requires auditors of regulated entities to apply ISA as issued by the IAASB. On this basis, ISA are required in the principal areas where mandatory audits are imposed in the jurisdiction.

With respect to the International Standard on Auditing (ISA) for Audits of Financial Statements of Less Complex Entities (LCE), the International Federation of Accountants translations database shows that a Spanish-Latin America translation was completed in January 2024. No Guatemala-specific source was identified confirming separate national action on ISA for LCE, but the existing ongoing adoption mechanism indicates that ISA for LCE is treated as adopted in the jurisdiction.

Current Status: Adopted

Decree No. 72-2001 grants the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG) authority to establish ethical requirements for its members (see Law on Mandatory Professional Membership (Decree No. 72-2001)). In March 2013, CCPAG adopted the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA) through a resolution published in the Diario de Centro América. The resolution provides for the ongoing adoption of subsequent revisions and updates as issued by the IESBA. For reference, the latest version of the Code can be accessed via the IESBA Code of Ethics (current handbook).

Current Status: Adopted

The Ministry of Public Finance is responsible for public sector accounting in Guatemala through the Integrated Government Accounting System framework established under the Organic Budget Law, Decree No. 101-97. The ministry issues the applicable public sector accounting manuals and guidance, including the current Manual de Contabilidad Integrada Gubernamental 2024.

Current authoritative sources indicate that Guatemala applies national accrual-based public sector accounting standards and manuals with reference to International Public Sector Accounting Standards (IPSAS) rather than direct adoption of IPSAS in their entirety. IFAC’s member country profile for Guatemala and the International Public Sector Financial Accountability Index continue to describe the jurisdiction on this basis.

No evidence was identified that accrual-basis IPSAS, with or without local modifications, have been adopted for all public sector entities. Accordingly, the jurisdiction-level framework is not fully aligned with the benchmark for direct IPSAS adoption under the 2026 definitions, but it does reflect accrual-based national standards with reference to IPSAS. The jurisdiction is therefore assessed as Partially Adopted.

Current Status: Partially Adopted

Decree No. 72-2001 authorizes the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG) to establish an investigative and disciplinary system for its members. The framework is supported by the college’s statutes, under which the Tribunal de Honor forms part of the governance structure and is responsible for disciplinary matters.

Publicly available information indicates that an investigative and disciplinary system is in place and operational through CCPAG. The system is primarily complaint-based, with the Tribunal de Honor responsible for reviewing complaints, conducting investigations, and issuing decisions. CCPAG’s 2023–2025 action plan confirms the role of the Tribunal de Honor in directing investigations and disciplinary outcomes.

However, the system incorporates some, but not all, of the requirements of SMO 6. In particular, there is an absence of an information-based approach to initiating investigations, limited evidence of clear separation between investigation and disciplinary functions, and the lack of a clearly defined independent appeals mechanism. In addition, there is limited publicly available information on the publication of disciplinary outcomes and the linkage between quality assurance reviews and disciplinary actions. Accordingly, the jurisdiction is assessed as Partially Adopted.

Current Status: Partially Adopted

Although the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG) adopted IFRS in 2007, the resolution is not legally binding. The Code of Commerce requires financial statements to be prepared in accordance with generally accepted accounting principles but does not mandate IFRS. In practice, financial reporting is influenced by tax legislation, and financial statements prepared under this framework are generally for special purpose use.

Sector-specific requirements apply. The Superintendence of Banks requires entities under its supervision to apply its accounting manual, which differs in certain respects from IFRS, while permitting the use of IFRS where guidance is not specified. Other entities, including those supervised by the Superintendencia de Administración Tributaria and the Securities and Commodities Market, may apply IFRS, but there is no consistent requirement for all domestic publicly accountable entities.

Accordingly, IFRS are not required for application in all general purpose financial statements of domestic publicly accountable entities. The jurisdiction is therefore assessed as Partially Adopted.

International Financial Reporting Standards for Small- and Medium-sized Entities (IFRS for SMEs) were adopted by CCPAG in 2010; however, they are not mandated at the jurisdiction level.

Current Status: Partially Adopted

Relevant Organizations

Colegio de Contadores Públicos y Auditores de Guatemala Group of Latin American Accounting Standard Setters Instituto Guatemalteco de Contadores Públicos y Auditores Ministry of Public Finance Guatemala Superintendencia de Administración Tributaria Superintendence of Banks Guatemala

Relevant Legislation

Decree No. 72-2001, Law on Mandatory Professional Membership Decree No. 101-97, Organic Budget Law Decree No. 10-2012, Tax Legislation Resolution JM-45-2015, Superintendence of Banks

Relevant Publications

Colegio de Contadores Públicos y Auditores de Guatemala Action Plan 2023–2025

Colegio de Contadores Públicos y Auditores de Guatemala Academic Credits Regulation

IFRS Foundation Guatemala Jurisdiction Profile

Ministry of Public Finance Guatemala Manual de Contabilidad Integrada Gubernamental 2024