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Accounting Profession in Guatemala Takes Steps to Align with International Standards
Guatemala’s professional accounting body, the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG), has been working diligently to ensure that the accounting profession in Guatemala meets international standards. In a recent assessment, the CCPAG was found to be making progress in several key areas.
Ethics and Professional Conduct
The CCPAG has demonstrated its commitment to upholding ethical standards by establishing an Ethics Commission, which provides training and support to members on the Code of Ethics. The commission also disseminates articles on the code through the CCPAG’s magazine and website. Furthermore, the CCPAG encourages universities to incorporate the code into their accounting curricula.
International Public Sector Accounting Standards
The CCPAG has been actively involved in promoting the adoption of International Public Sector Accounting Standards (IPSAS) in Guatemala. The organization has contributed to consultation activities leading to the Ministry of Public Finance’s adoption of IPSAS and provides training on IPSAS through courses and conferences. Plans are underway to relaunch the Public Sector International Accounting Standards Commission, which will be responsible for monitoring new and amended standards.
Investigation and Discipline
The CCPAG has established an investigative and disciplinary system for professional accountants in Guatemala. However, the organization is still working to address gaps in the current procedures, including the need for information-based complaints and public disclosure of results. The CCPAG is encouraged to continue its efforts to update Decree No. 72 of 2001 to incorporate missing elements that would help fulfill SMO 6 requirements.
International Financial Reporting Standards
The CCPAG has adopted International Financial Reporting Standards (IFRS) and IFRS for Small- and Medium-sized Entities (SMEs) for application among its membership. The organization provides training activities, disseminates information on updates to the standards, and participates in international standard-setting processes. Plans are underway to relaunch the Private Sector International Accounting Standards Commission, which will be responsible for monitoring new and amended standards.
Current Status
The CCPAG’s current status for each SMO area is as follows:
- Ethics and Professional Conduct: Sustain
- International Public Sector Accounting Standards: Sustain
- Investigation and Discipline: Plan
- International Financial Reporting Standards: Sustain
The CCPAG’s efforts demonstrate a commitment to upholding high-quality accounting practices in Guatemala. As the organization continues to work towards meeting its SMO goals, it is encouraged to advocate for the full adoption of IFRS and IFRS for SMEs by the Tax Administration and Superintendence of Banks, which would bring financial reporting in line with international best practices.