Financial Crime World

Financial Reporting Requirements in Peru Take Center Stage

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In a bid to maintain transparency and accountability, Peru has established strict financial reporting requirements for businesses operating within its borders.

Understanding Peru’s Fiscal Year

Peru’s fiscal year begins on January 1 and ends on December 31 of the same year. This sets the stage for annual accounting and reporting obligations that all Peruvian companies must adhere to.

International Accounting Standards

Peruvian companies are required to follow International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), ensuring consistency with global best practices. These standards provide a framework for financial reporting, helping to ensure transparency and comparability across industries and countries.

Regulatory Oversight

The National Directorate of Public Accounting (DNCP) and Comisión de Control y Participación Ciudadana de la Ley de Acceso a la Información Pública (CCPL) oversee the accounting regulation bodies, guaranteeing compliance with established standards. This regulatory oversight helps to maintain trust in Peru’s financial markets.

Financial Statements

Financial statements must be prepared annually, featuring:

  • A balance sheet
  • Profit and loss account
  • Annexes

An independent auditor’s certification is also mandatory, providing an added layer of assurance for stakeholders. This requirement was introduced in Peru in 1974, with the creation of the Comision Nacional de Empresas y Valores.

Authorized Certification Bodies

Several companies have been authorized to issue certificates of conformity with Peruvian standards by the Technical Regulation Commission of INDECOPI. These organizations include:

  • INASA
  • SGS del Peru
  • BSI Inspectorate Peru
  • EQUAS S.A.
  • SG Nortek

Alternatively, businesses can engage external auditors from renowned firms such as Deloitte, KPMG, Ernst & Young, and PricewaterhouseCoopers to ensure compliance with financial reporting requirements.

Staying Informed

Staying informed about the latest developments in accounting news is crucial for businesses operating in Peru. eexpand’s dedicated team provides regular updates on changes to financial reporting requirements, ensuring that companies remain compliant and up-to-date with best practices. For the latest information, please visit our website or contact us directly.