Nicaragua

In Nicaragua, the statutory framework for accounting and auditing remains fragmented, with requirements deriving from the Commercial Code, sector-specific financial sector regulation, and professional requirements issued by the Colegio de Contadores Públicos de Nicaragua (CCPN). The Commercial Code requires companies to prepare an annual balance sheet and inventory and to publish them in the La Gaceta, but it does not establish a comprehensive set of accounting standards for general purpose financial statements. The World Bank’s Report on the Observance of Standards and Codes also notes that Nicaragua does not have legally binding corporate financial reporting standards for the broader corporate sector.

In the absence of a single general corporate reporting law, financial reporting requirements in practice are differentiated by sector. According to the IFRS Foundation’s jurisdictional profile, the Superintendencia de Bancos y de Otras Instituciones Financieras (SIBOIF) is the relevant authority for listed companies, banks, insurance companies, and bonded warehouses, while the CCPN has adopted International Financial Reporting Standards (IFRS) Accounting Standards and the IFRS for Small and Medium-sized Entities (IFRS for SMEs) Accounting Standard as professional requirements in Nicaragua. The profile indicates that the CCPN formally adopted both full IFRS Accounting Standards and the IFRS for SMEs Accounting Standard in 2011.

For banks and finance companies, SIBOIF issued Resolution No. CD-SIBOIF-1020-1-OCT10-2017, which approved a sector-specific accounting framework based on IFRS Accounting Standards and SIBOIF regulations. That resolution established a transition period during 2018 and required adoption from 1 January 2019. Similar SIBOIF accounting frameworks were also issued for other supervised entities, including insurance companies, reinsurers, surety companies, and bonded warehouses. SIBOIF has continued to refine those frameworks, including a 2022 reform to the insurance accounting framework and a 2023 consultation on amendments aligned with IFRS 17.

The accountancy profession is governed in part by the Law for the Practice of Public Accountant, Executive Decree No. 6 of 14 April 1959, which established the legal basis for the profession and for the CCPN. However, as reflected in the IFRS Foundation profile and the World Bank review, the standards issued by the CCPN operate primarily as professional requirements rather than as a universally binding corporate reporting framework for all entities in the jurisdiction.

Auditing requirements are also differentiated. For entities supervised by SIBOIF, the external audit framework is established through SIBOIF regulation. Resolution No. CD-SIBOIF-1129-2-SEP10-2019 defines the International Standards on Auditing (ISA) and applies to the external audits of supervised entities. Outside the regulated financial sector, Nicaragua does not appear to have a broad statutory audit requirement applicable to all companies, and the World Bank review previously observed that statutory financial reporting and audit obligations for ordinary companies were limited.

In Nicaragua, the accountancy profession is regulated through a mixed framework involving the state and the professional body. The legal basis for the profession is established by the Law for the Practice of Public Accountant of 14 April 1959 and its implementing Regulation of 29 April 1967. Under this framework, the profession of public accountant may only be exercised by individuals authorized in accordance with the law and the regulation. Recent notices published in La Gaceta, the Official Gazette, indicate that the Ministry of Education (MoE) continues to issue authorizations for Contadores Públicos Autorizados (CPAs) under Article 3 of the law.

The Colegio de Contadores Públicos de Nicaragua (CCPN) is the principal professional accountancy organization in the jurisdiction and operates under the legal framework established by the 1959 law and the 1967 regulation. Based on its current institutional materials, the CCPN maintains member categories for both Contadores Públicos and Contadores Públicos Autorizados, maintains registries of members and audit firms, issues professional and technical publications, provides continuing professional development activities, and publishes its legal, ethical, and disciplinary framework, including the Regulation of Procedures for Investigation and Discipline.

Accordingly, in practice, the MoE is responsible for granting the legal authorization to practice as a CPA, while the CCPN plays the leading role in regulating and supporting the profession at the professional level through the establishment of initial professional development and continuing professional development requirements for its members, the issuance of accounting, auditing, and ethical guidance, the maintenance of professional registries, and the operation of investigative and disciplinary procedures.

To practice as an auditor, individuals are required to obtain the CPA designation recognized by the MoE and administered in coordination with the CCPN. Based on the existing legal and professional framework, entry requirements continue to include a university degree in accountancy and professional registration procedures established by the competent authorities. The CCPN also continues to distinguish between members authorized to perform audit services and those providing other professional accountancy services.

In addition, the Superintendencia de Bancos y de Otras Instituciones Financieras (SIBOIF) exercises sector-specific oversight over external auditors serving supervised financial institutions. Under its external audit regulations, SIBOIF maintains a registry of external auditors and audit firms authorized to provide services to banks, insurance companies, and other supervised entities.

This framework reflects a shared regulatory model in which the state grants legal authorization to practice, the CCPN regulates and supports the profession at the professional level, and SIBOIF exercises additional oversight for auditors serving regulated financial institutions.

Nicaragua does not appear to have an independent public audit oversight authority with jurisdiction-wide responsibility for the regulation and inspection of all statutory auditors and audit firms.

Oversight of the audit profession continues to be exercised through a shared framework involving the Ministry of Education (MoE), the Colegio de Contadores Públicos de Nicaragua (CCPN), and, for regulated financial sector entities, the Superintendencia de Bancos y de Otras Instituciones Financieras (SIBOIF).

At the jurisdiction level, the MoE is responsible for granting legal authorization to practice as a Contador Público Autorizado (CPA), while the CCPN performs professional regulatory functions in relation to its members, including professional standards, ethics, continuing professional development, and investigative and disciplinary procedures.

For banks, insurance companies, securities market entities, and other supervised financial institutions, SIBOIF exercises direct regulatory oversight over external auditors and audit firms through its External Audit Regulation, Resolution No. CD-SIBOIF-1129-2-SEP10-2019. Under this framework, supervised institutions are required to obtain an annual external audit, and SIBOIF maintains a Registry of External Auditors and audit firms authorized to provide services to entities under its supervision. The regulation establishes requirements relating to registration, independence, eligibility, selection, and ongoing oversight of external audit firms engaged by supervised entities.

Accordingly, while Nicaragua does not have an independent audit oversight authority comparable to a public oversight board or an International Forum of Independent Audit Regulators member, sector-specific oversight exists for financial institutions through SIBOIF, and the broader profession continues to be regulated through the existing state and professional framework.

The Colegio de Contadores Públicos de Nicaragua (CCPN)

The Colegio de Contadores Públicos de Nicaragua (CCPN) is the principal professional accountancy organization in Nicaragua and the only body legally recognized as the representative organization of the accountancy profession in the jurisdiction. The CCPN was established under the Law for the Practice of Public Accountant of 14 April 1959 and continues to operate under the legal framework established by that law and its implementing regulation.

Its membership is comprised of Contadores Públicos and Contadores Públicos Autorizados (CPAs). The CCPN plays a central role in the development, regulation, and support of the profession. Its responsibilities include establishing initial professional development and continuing professional development requirements for its members, issuing professional guidance and technical standards in accounting, auditing, and ethics, maintaining registries of members and audit firms, administering investigative and disciplinary procedures, and providing training and other professional development activities.

The CCPN also supports the advancement of the profession through technical publications, professional events, and cooperation with national stakeholders on matters related to financial reporting, auditing, and professional regulation.

In addition to its national role, the CCPN is a member of the International Federation of Accountants (IFAC) and the Asociación Interamericana de Contabilidad, also known as the Inter-American Accounting Association.

There is no legal requirement in Nicaragua for a jurisdiction-wide quality assurance (QA) review system covering all audits of financial statements.

Nicaragua does not appear to have an operational external QA review system aligned with the requirements of Statement of Membership Obligations 1 (SMO 1) for all mandatory audits. While the Colegio de Contadores Públicos de Nicaragua (CCPN) continues to regulate its members, maintain registries of auditors and audit firms, and operate investigative and disciplinary procedures, no credible evidence was identified indicating that a cycle-based external QA review system has been formally established and is operational.

In particular, no current legal, regulatory, or professional source was identified to demonstrate that mandatory inspections are conducted on a regular review cycle, that reviewed firms are subject to documented corrective actions, or that the QA review process is formally linked to the investigative and disciplinary system in line with SMO 1 requirements.

In addition, no current evidence was identified to confirm that the International Standard on Quality Management 1 (ISQM 1), International Standard on Quality Management 2 (ISQM 2), and International Standard on Auditing 220 (Revised) have been formally adopted and made effective in the jurisdiction.

For entities supervised by the Superintendencia de Bancos y de Otras Instituciones Financieras (SIBOIF), sector-specific requirements exist in relation to the registration and eligibility of external auditors and audit firms. However, these requirements do not constitute a jurisdiction-wide external QA review system.

Current Status: Not Adopted

Initial professional development and continuing professional development requirements in Nicaragua are established through a shared framework involving the Ministry of Education (MoE), universities, and the Colegio de Contadores Públicos de Nicaragua (CCPN). The legal basis for state authorization to practice as a public accountant remains the Law for the Practice of Public Accountant, under which authorization is granted by the MoE. Recent consolidated legal sources continue to confirm that individuals must obtain authorization from the MoE to exercise the profession.

At the professional level, the CCPN continues to play a significant role in establishing and administering professional development requirements for its members. Current CCPN sources indicate that the organization maintains continuing professional development requirements for Contadores Públicos Autorizados (CPAs), including a quinquennial renewal process linked to continuing education and, where applicable, a competence examination. CCPN sources also indicate that 40 hours of continuing professional development are established for CPAs, with additional requirements applying in certain cases, and that a total of 200 hours of continuing education is relevant to quinquennial renewal. The CCPN also continues to administer examinations for certification as a CPA and maintains relationships with universities to support professional formation.

These arrangements demonstrate that elements of the International Education Standards (IES) have been incorporated in the jurisdiction, particularly in relation to entry, continuing professional development, and professional assessment for the segment of the profession represented by the CCPN. However, no current authoritative source was identified demonstrating that the full set of IES requirements in effect as of the time of the assessment has been adopted in their entirety for all aspiring and professional accountants in Nicaragua. In particular, further confirmation would be needed on the extent to which learning outcomes, practical experience, assessment, and continuing professional development requirements are fully aligned with the latest IES across the profession as a whole.

Accordingly, the jurisdiction continues to be assessed as Partially Adopted for IES.

Current Status: Partially Adopted

The Colegio de Contadores Públicos de Nicaragua (CCPN) is recognized as the professional body responsible for establishing auditing standards for its members, while the Superintendencia de Bancos y de Otras Instituciones Financieras (SIBOIF) establishes audit requirements for entities under its supervision. The most current publicly available national regulatory source is SIBOIF’s External Audit Regulation, Resolution No. CD-SIBOIF-1129-2-SEP10-2019, which requires the scope and execution of external audit engagements for supervised entities to be conducted in accordance with the International Standards on Auditing (ISA). SIBOIF’s 2019 management report further states that the regulation was updated to reflect changes to the applicable accounting framework and updates to ISA.

Based on the available evidence, ISA are referred to in Nicaragua on an “as issued” basis rather than through adoption of a fixed dated handbook. Accordingly, for audits of supervised financial institutions, the applicable standards appear to incorporate currently effective ISA issued by the International Auditing and Assurance Standards Board. No separate dated national handbook was identified on the websites of SIBOIF or the CCPN. On that basis, the handbook in use is best assessed as the 2025 edition for purposes of this review.

No current evidence was identified that Nicaragua has formally adopted the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities. A 2024 CCPN training announcement refers to “Normas de Auditoría para entidades menos complejas,” which indicates awareness and professional training activity, but this does not in itself demonstrate formal jurisdictional adoption.

Accordingly, ISA in their entirety in effect as of the time of the assessment are assessed as Adopted in Nicaragua.

Current Status: Adopted

The Law for the Practice of Public Accountant of 14 April 1959 authorizes the Colegio de Contadores Públicos de Nicaragua (CCPN) to establish ethical requirements for its members, including Contadores Públicos and Contadores Públicos Autorizados (CPAs).

The CCPN continues to maintain and publish a national Code of Ethics for its members. Based on the currently available version on the CCPN website, the national code remains based on the 2009 International Ethics Standards Board for Accountants (IESBA) Code of Ethics and has not been updated to reflect the post-2018 restructuring and revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards). The published national code expressly references the 2009 framework and terminology used under the earlier IESBA Code.National Code link:

No credible current evidence was identified indicating that the CCPN has formally adopted the Code on an “as issued” basis or that the 2025 edition has been incorporated into national requirements. In addition, no published roadmap or formal timeline was identified for adoption of the 2018 and later revisions, including the restructured Code, non-assurance services provisions, fees provisions, technology-related revisions, or the tax planning and related services provisions.

Accordingly, the version currently evidenced in the jurisdiction is assessed as pre-2018, based on the 2009 Handbook, and the jurisdiction is therefore assessed as Not Adopted under the 2026 adoption definitions.

Current Status: Not Adopted

The Ministry of Finance and Public Credit remains the authority responsible for establishing the public sector financial reporting framework in Nicaragua.

According to the most recent IFAC and Chartered Institute of Public Finance and Accountancy International Public Sector Financial Accountability Index, Nicaragua continues to apply the cash-basis International Public Sector Accounting Standards (IPSAS) framework for central government reporting. The index continues to identify Nicaragua as a cash-basis IPSAS jurisdiction.

No current authoritative source was identified indicating that Nicaragua has transitioned to accrual-basis IPSAS or adopted accrual-based national public sector accounting standards aligned with IPSAS. Likewise, no evidence was identified of an active transition roadmap toward accrual implementation across all public sector entities.

Accordingly, Nicaragua continues to be assessed as Partially Adopted for IPSAS, reflecting the continued use of cash-basis IPSAS rather than accrual-basis IPSAS. This assessment remains consistent with the 2026 adoption definitions, under which cash-basis IPSAS is classified as partially adopted.

Current Status: Partially Adopted

The Law for the Practice of Public Accountant of 14 April 1959 authorizes the Colegio de Contadores Públicos de Nicaragua (CCPN) to establish and operate an investigative and disciplinary system for its members, including Contadores Públicos and Contadores Públicos Autorizados (CPAs). Current CCPN sources confirm that the institute maintains a formal Reglamento de Procedimientos de Investigación y Disciplina dated 27 September 2019 and continues to publish decisions and notices issued by its Tribunal de Honor, indicating that the system is operational in practice.

These sources support the conclusion that an investigative and disciplinary framework exists and that some components of Statement of Membership Obligations 6 (SMO 6) have been incorporated, including procedures for handling cases and the issuance of disciplinary decisions. In addition, external sources confirm that the CCPN has supervisory and sanctioning powers in certain anti-money laundering contexts under Law 977 and related regulations.

However, no current authoritative source was identified demonstrating that the jurisdiction-level system fully incorporates all SMO 6 requirements for all professional accountants. In particular, further confirmation would be needed regarding the full separation of investigation and discipline, the composition and independence of disciplinary bodies, the existence and operation of an appeals process, the extent of public interest participation, and the degree of linkage between the investigative and disciplinary system and other regulatory processes.

Current Status: Partially Adopted

Although the Commercial Code establishes basic bookkeeping and financial statement preparation requirements, it does not prescribe a comprehensive set of corporate accounting standards for general purpose financial statements. In practice, the financial reporting framework in Nicaragua is differentiated between professional requirements established by the Colegio de Contadores Públicos de Nicaragua (CCPN) and sector-specific requirements issued by the Superintendencia de Bancos y de Otras Instituciones Financieras (SIBOIF).

According to the International Financial Reporting Standards Foundation jurisdiction profile for Nicaragua, the CCPN formally adopted International Financial Reporting Standards (IFRS) Accounting Standards and the IFRS for Small and Medium-sized Entities (SMEs) Accounting Standard in 2011 as professional requirements in Nicaragua. The same profile indicates that, where law or regulation requires or permits IFRS Accounting Standards or the IFRS for SMEs Accounting Standard, all new or amended standards are automatically included. This supports the conclusion that IFRS Accounting Standards are applied on an “as issued” basis rather than through a fixed dated handbook. Accordingly, the handbook in use is best assessed as the 2025 edition for purposes of this review.

For domestic companies whose debt or equity securities trade in a public market in the jurisdiction, the IFRS Foundation profile states that either full IFRS Accounting Standards or United States Generally Accepted Accounting Principles is required in consolidated financial statements. The profile also states that SIBOIF supervises listed companies, banks, insurance companies, and bonded warehouses and incorporates IFRS Accounting Standards into its regulations for those entities.

The same source confirms that the IFRS for SMEs Accounting Standard is adopted in Nicaragua, with no modifications, for at least some small and medium-sized entities. It further notes that entities not using the IFRS for SMEs Accounting Standard may use full IFRS Accounting Standards. Adoption of the IFRS for SMEs Accounting Standard does not affect the jurisdiction’s IFRS adoption rating, but it remains part of the financial reporting framework in practice.

Accordingly, Nicaragua continues to be assessed as Adopted for IFRS Accounting Standards because IFRS Accounting Standards in effect as of the time of the assessment are required or permitted for domestic publicly accountable entities in consolidated general purpose financial statements, and the standards are incorporated on an ongoing basis. IFRS for SMEs is also adopted in the jurisdiction.

Current Status: Adopted

Relevant Organizations

Colegio de Contadores Públicos de Nicaragua (CCPN)

Ministry of Education (MoE)

Ministry of Finance and Public Credit

Superintendencia de Bancos y de Otras Instituciones Financieras (SIBOIF)

Relevant Legislation

Código de Comercio de la República de Nicaragua

Law for the Practice of Public Accountant, Executive Decree No. 6 of 14 April 1959

SIBOIF, Resolution No. CD-SIBOIF-1020-1-OCT10-2017, Norma para la implementación del marco contable para las instituciones bancarias y financieras

SIBOIF, Resolution No. CD-SIBOIF-1129-2-SEP10-2019, Norma sobre Auditoría Externa

Relevant Publications

CCPN, Código de Ética Profesional

CCPN, Reglamento de Procedimientos de Investigación y Disciplina, 2019

CCPN, CPA Renewal and Continuing Professional Development Requirements

IFRS Foundation, IFRS Application Around the World: Jurisdictional Profile – Nicaragua

World Bank, Report on the Observance of Standards and Codes (ROSC): Accounting and Auditing – Nicaragua, March 2011