Financial Crime World

Financial Reporting Requirements in Peru: A Step Towards Global Convergence

Peru has been making significant strides towards adopting international financial reporting standards, joining a growing list of countries embracing global accounting principles.

Regulatory Bodies and Legislative Institutions Take Action

  • The Superintendencia del Mercado de Valores (SMV), Peru’s securities regulator, has issued resolutions mandating International Financial Reporting Standards (IFRS) adoption for public filers in the local stock market since 2012.
  • The Peruvian Congress has enacted laws requiring all private companies to file financial statements prepared in conformity with IFRS.

Phased Implementation of IFRS

  • The SMV recently required non-public filers in the local stock market to prepare financial statements under IFRS as issued by the International Accounting Standard Board (IASB).
  • This phased implementation will affect companies with total assets and/or net revenues exceeding:
    • US$ 40 million
    • US$ 4 million

SMEs and IFRS Adoption

  • The Consejo Normativo de Contabilidad (CNC), Peru’s accounting standards council, has adopted the IFRS for Small and Medium-Sized Enterprises (SMEs) starting January 1, 2011.
  • This standard can be applied by all Peruvian companies with total assets and/or net revenues under:
    • 3,000 taxable units (UIT)

Global Convergence Efforts

  • Peru has participated in the IFAD GAAP Convergence Studies, demonstrating its commitment to adopting global financial reporting standards.
  • The country has also responded to the IFAC Member Body Survey on Standard Setting and Regulation.

Recognition of Progress

  • The World Bank’s ROSC Accounting and Auditing Report highlights Peru’s progress towards aligning its financial reporting framework with international best practices.
  • The Colegio de Contadores Publicos de Lima, Peru’s national professional organization for accountants, has recognized the country’s efforts to adopt IFRS.

Enhancing Transparency and Investor Confidence

As Peru continues to move forward with implementing global accounting standards, it is expected that this will enhance: + Transparency + Comparability + Investor confidence in the country’s financial markets