Argentina Makes Progress on Accounting Standards, but Faces Challenges

Introduction

The Federación Argentina de Consejos Profesionales de Contadoría y Actuaria (FACPCE) has made significant progress in implementing international accounting standards, despite facing challenges in certain areas.

Implementing International Public Sector Accounting Standards

According to the latest SMO Action Plan report, FACPCE has taken steps to develop public sector accounting standards harmonized with International Public Sector Accounting Standards (IPSAS), although a timeframe for adoption is unclear. The organization has also engaged in regular meetings with the Comisión de Garantía de la Negociabilidad (CGN) and submitted comments to IPSAS Board exposure drafts.

Ongoing Process of Maintaining SMO 5 Obligations

FACPCE has demonstrated an ongoing process to maintain its fulfillment of the SMO 5 obligations, including:

Preparing technical recommendations for the government
Disseminating information on updates to standards
Offering training courses

However, the organization faces challenges in implementing a national investigative and disciplinary system that meets the best practices of SMO 6.

Challenges in Implementing SMO 6 Obligations

FACPCE faces challenges due to Argentina’s federal system, which presents fragmented regulation of the accountancy profession. The CGN has reportedly started a process to develop public sector accounting standards harmonized with accrual- basis IPSAS, but a timeframe for adoption is unclear.

Collaboration and Recommendations

FACPCE has collaborated with provincial councils to promote the establishment of investigative and disciplinary systems that are in line with SMO 6 requirements. Additionally, FACPCE’s Accounting and Auditing Standard-Setting Board (CENCyA) has prepared technical recommendations for the government, including four recommendations in line with IPSAS requirements.

Commitment to Continuous Improvement

Despite these challenges, FACPCE remains committed to continuous improvement and has demonstrated an ongoing process to maintain its fulfillment of SMO 7 obligations, including:

Adopting International Financial Reporting Standards (IFRS) for listed companies and financial institutions
Signing cooperation agreements with regulatory bodies to facilitate the adoption of IFRS

Recommendations for Future Improvement

FACPCE is encouraged to consider its role in regards to SMO 6 and provide more details on its plans to establish a national investigative and disciplinary system or serve as an appeal mechanism for provincial council cases. Additionally, the organization may want to explore how it can further promote the need and benefit of adopting IFRS for insurance companies.

Conclusion

Argentina has made significant progress in implementing international accounting standards, but faces challenges in certain areas. FACPCE’s commitment to continuous improvement is essential in ensuring the profession remains credible and effective.