Financial Crime World

Bolivia Adopts International Accounting and Sustainability Standards

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La Paz, Bolivia - The Consejo Técnico Nacional de Auditoría y Contabilidad (CTNAC) of the College of Auditors or Public Accountants of Bolivia (CAUB) has made significant strides in adopting international accounting and sustainability standards.

Adoption of International Code of Ethics for Professional Accountants

According to Resolution CTNAC No. 01/2020, the current and emerging International Code of Ethics for Professional Accountants was adopted by the CTNAC on February 5, 2020, and is currently in full force and effect. The resolution also established that professional accountants must apply local accounting standards that comply with international standards for the preparation of financial information.

Adoption of Generally Accepted Auditing Standards

Resolution CTNAC 01/2015 approved the validity of the Generally Accepted Auditing Standards in Bolivia, as well as the Adoption of International Standards on Auditing, Assurance and Related Services, issued by the International Auditing and Assurance Standards Board (IAASB), effective January 1, 2017.

Adoption of International Quality Management Standards

The CTNAC has also adopted the International Quality Management Standards, current and emerging, issued by the IAASB, through Resolution No. 02/2020, which is currently in full force and effect.

Focus on Sustainability Disclosure

In recent years, the accounting profession has shifted its focus to sustainability disclosure, with stakeholders increasingly requiring additional information related to environmental issues, human capital management, social environment, and corporate governance practices.

To address this growing demand, the CTNAC approved Resolution No. 01/2024 on March 21, 2024, adopting the International Financial Reporting Standards for Sustainability (IFRS S) issued by the International Sustainability Standards Board (ISSB), effective January 1, 2027, with an early application option.

Global Sustainability Assurance Standard

The CAUB is also monitoring the progress of the proposed global sustainability assurance standard, ISSA 5000, to promptly respond to this concern and adopt these standards for their application in Bolivia.

Commitment to Adoption of International Pronouncements

“We are committed to maintaining a continuous process of adoption and application of international pronouncements of the accounting profession,” said [Name], President of the CAUB. “We will continue coordinating with government agencies to promote the formalization of the regulatory process and full adoption of international pronouncements in Bolivia.”

Expected Outcomes

The adoption of these international standards is expected to enhance transparency, accountability, and sustainability in Bolivia’s financial reporting and auditing practices.

By adopting these standards, the accounting profession in Bolivia aims to:

  • Enhance transparency by providing stakeholders with consistent and comparable information about an organization’s performance and position.
  • Improve accountability by ensuring that organizations are held responsible for their actions and decisions.
  • Promote sustainability by encouraging organizations to consider environmental, social, and governance (ESG) factors in their decision-making processes.