Chile Adopts International Code of Ethics for Professional Accountants

Santiago, Chile - A Milestone in Adopting International Accounting Standards

The Colegio de Contadores de Chile (CCCH) has adopted the International Code of Ethics for Professional Accountants for auditors providing services to audit firms in its Registry of External Auditors (RAE) and individual professionals registered in the Register of Auditors and Account Inspectors (RICAE).

Progress Made, Challenges Remain

According to a recent report by the International Federation of Accountants (IFAC), Chile has made significant progress in adopting international accounting standards, including the International Public Sector Accounting Standards (IPSAS). The country’s accounting standard-setter, the Controller General of the Republic of Chile (CGRCH), has adopted IPSAS modified for local context and effective since January 1, 2016.

However, the report also highlights some areas where Chile still needs to improve. For instance:

• Individuals practicing the profession in Chile who are not registered with the CCCH or the CMF are not subject to any ethical requirements and are not regulated by professional bodies.
• The extent to which the Financial Market Commission (CMF) investigative and disciplinary system meets international best practices is unclear.

Adoption of IFRS and Modifications

Chile has also adopted International Financial Reporting Standards (IFRS), but with some modifications. The CMF has adopted IFRS for listed companies since 2009, while the Superintendent of Banks and Financial Institutions (SBIF) has made significant modifications to the standards for financial institutions.

CCCH’s Code of Ethics

The CCCH has developed its own Code of Ethics, updated in 2022, which is supplemented by the International Code of Ethics for Professional Accountants. The organization’s investigative and disciplinary system has also been established, but it has identified gaps in its policies and processes.

Commitment to Best Practices

Despite these challenges, Chile remains committed to adopting international accounting standards and best practices. In its SMO Action Plan, the CCCH has outlined plans to address these areas and improve its regulatory framework.

Conclusion

The report concludes that while Chile has made significant progress in adopting international accounting standards, there is still room for improvement, particularly in terms of ethical requirements and investigative and disciplinary processes.