Bolivia Moves Towards Convergence with International Standards

La Paz, Bolivia - The Bolivian accounting profession is making significant progress towards convergence with international standards, according to a recent report by the International Federation of Accountants (IFAC).

Key Developments

• The National Technical Board of Auditors and Accountants (CTNAC) has adopted International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
• CTNAC has also adopted Bolivian Accounting standards by reference to IFRS.
• However, public sector accounting standards are still on a partial accrual-basis and have not been aligned with International Public Sector Accounting Standards (IPSAS).

Progress in Ethics and Discipline

• The Colegio de Auditores o Contadores Públicos de Bolivia (CAUB) has adopted the International Code of Ethics for Professional Accountants by reference to the International Ethics Standards Board for Accountants (IESBA).
• However, the CAUB’s Code of Ethics is not entirely aligned with the international standard.
• The CAUB has implemented an Ethics Council and Ethic Tribunals to investigate and discipline its members, and has aligned its procedures with the SMO 6 requirements.

Challenges Ahead

• While progress has been made towards convergence with international standards, there is still work to be done to align Bolivian accounting standards with IFRS and IPSAS.
• The Authority for Fiscal and Social Control of Businesses (AEMP) must still ultimately approve and issue accounting standards through an official Administrative Resolution.

Conclusion

The report concludes that while progress has been made towards convergence with international standards, there is still work to be done to align Bolivian accounting standards with IFRS and IPSAS. However, the efforts made by the CTNAC and CAUB are a step in the right direction towards achieving this goal.