Argentina

The Argentine Commercial Companies Law No. 19.550, as amended, and the Code of Commerce provides the basic legal framework for companies, including requirements relating to accounting, keeping accounting records, publication of financial statements, and auditing.

Argentina's corporate financial reporting framework empowers each province to have autonomy in setting specific company requirements. For example, as part of their general prerogatives as defined in Law No. 20.488 of 1973, each provincial council within its jurisdiction is authorized to set accounting and auditing standards for all companies, except for regulated companies, as described below. In practice, the provincial councils defer to the accounting and auditing standards issued by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE). FACPCE administers the Accounting and Auditing Standard-Setting Board (CENCyA), the technical and standard-setting body which drafts standards for FACPCE approval. In turn, FACPCE-issued standards must be adopted by the provincial professional councils to become mandatory in their jurisdictions. FACPCE issued Technical Resolution (TR) No 26 in 2009, which adopts IFRS and IFRS for Small- and Medium-sized Enterprises (SMEs) by reference. Other companies can use IFRS for SMEs or Argentinean standards issued by FACPCE.

Financial sector regulators—the Central Bank (BCRA), the National Securities Commission (CNV), and the Superintendence of Insurance (SSN)—are empowered to set sector-specific accounting rules for the companies they regulate. Listed companies are required to use IFRS per CNV Resolution No. 576 of 2010. Financial institutions are required to use IFRS, except for IFRS 9, by the BCRA Communication A6114, as amended. Insurance companies apply accounting regulations issued by the SSN and plan to adopt IFRS, but no specific date has been announced.

Regarding auditing requirements, companies that use IFRS are required to prepare annual audited financial statements. FACPCE issued TR No. 32 in 2012, adopting ISA by reference as the applicable auditing standard for these companies. In addition, the financial sector regulators are empowered to set sector-specific audit rules for the companies they regulate. The CNV requires the application of ISA as adopted by FACPCE. Auditors providing services to companies regulated by the BCRA and SSN must apply national auditing standards and specific auditing regulations issued by the regulators.

The regulation of the accountancy profession in Argentina is somewhat decentralized, given the country's federal system. The Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE) is the national voluntary PAO of a federated system, with representatives from the 24 jurisdictions in Argentina. Law No. 20.488 of 1973 empowers each provincial council to regulate its members, and the provincial professional councils must adopt FACPCE-issued standards and regulations to become applicable in their jurisdictions.

A university accounting degree, which includes practical experience, is the only requirement to register as a public accountant. To practice in the accountancy profession, including auditing, professionals who graduated from university need to register and obtain licenses from a provincial professional council of their jurisdiction. FACPCE, alongside the provincial councils, has the legal authority to issue rules regulating professional practice, which include the following: (i) maintaining a registry of public accountants and auditors; (ii) setting accounting and auditing standards for companies that are not under financial regulators' supervision; (iii) establishing ethical standards; (iv) implementing an investigation and discipline (I&D) system; and (v) establishing and operating a quality assurance (QA) review system.

In addition, auditors providing services to companies regulated by the financial sector regulators—the Central Bank (BCRA), the National Securities Commission (CNV), and the Superintendence of Insurance (SSN)—are subject to specific regulations set by the respective regulator. The entities are authorized to: (i) set practical experience requirements and register auditors providing services to entities under their supervision; (ii) establish and operate a QA review system; and (iii) set sector-specific accounting and auditing standards.

There is no independent audit oversight in Argentina. Only auditors providing services to companies regulated by the financial sector regulators—the Central Bank (BCRA), the National Securities Commission (CNV), and the Superintendence of Insurance (SSN)—are subject to additional regulation set by the respective regulators. These entities are authorized to: (i) set practical experience requirements and register auditors providing services to entities under their supervision; (ii) establish and operate a quality assurance (QA) review system for auditors of regulated entities; and (iii) set sector-specific auditing standards.

All other auditors are subject to regulation by provincial councils and the Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE)—the federal umbrella organization of a federated system—which is further described in the

The Federación Argentina de Consejos Profesionales de Ciencias Económicas

FACPCE is the national voluntary PAO of a federated system, with representatives from the 24 jurisdictions in Argentina. The FACPCE represents accountants, economists, business administrators, and actuaries.

FACPCE (alongside the provincial councils, which have legal authority) carries out the following regulatory activities for its members: (i) maintaining a registry of public accountants and auditors; (ii) setting accounting and auditing standards for companies that are not under financial regulators' supervision; (iii) establishing ethical standards; (iv) implementing an investigation and discipline (I&D) system; and (v) establishing and operating a quality assurance review system. FACPCE-issued standards and regulations must be adopted by the provincial professional councils in order to become applicable in their jurisdictions.

FACPCE administers the Accounting and Auditing Standard-Setting Board (CENCyA), the technical and standard-setting body, where professional volunteers work through technical commissions to develop and propose technical resolutions and pronouncements for FACPCE approval.

In addition to being an IFAC member, FACPCE is a member of the Inter-American Association of Accountants, the Integration Committee Europe—Latin America, and a member of the Group of Latin-American Accounting Standard Setters.

Only companies using IFRS are required to prepare annual audited financial statements. This includes listed companies, financial institutions, and other companies (excluding insurance companies).

The financial sector regulators—the Central Bank (BCRA), the National Securities Commission (CNV), and the Superintendence of Insurance (SSN) are authorized to set regulations for their respective sectors. Their regulations address mainly the requirements for audit firms to adopt quality control standards. The BCRA Communication No. "A" 4018 and the CNV issued the General Resolution (GR) No. 505 of 2007, as amended by the GR No. 663 of 2016, introduced the requirements. While it appears that the BCRA and CNV carry out quality assurance (QA) reviews, it is unclear if the procedures align with SMO 1 best practices. In addition, it is unclear if the SSN has established a QA system for auditors providing services to insurance companies. The SSN national auditing standards do not address quality control requirements.

The Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE), through its Accounting and Auditing Standard-Setting Board (CENCyA), did issue Circular 7 adopting the quality management standards (ISQM 1 and 2 and ISA 220 (Revised)), effective for audits of financial statements starting on or after January 1, 2023, amending the Technical Resolution (TR) No. 32, 33, 34 and 35.

In accordance with the Law No. 20.488 of 1973 each provincial council also still has the legal authority to issue rules regulating the accountancy profession in its jurisdiction, which include establishing and operating a QA review system for all other audits of financial statements not covered by financial sector regulators. However, as of 2023, no specific rules have been issued regarding a QA review system by FACPCE or any provincial council.

Current Status: Partially Adopted

In Argentina, the Ministry of Education (MoE), universities, each provincial council, and the financial sector regulators—the Central Bank (BCRA), the National Securities Commission (CNV), and the Superintendence of Insurance (SSN)—have a role in implementing initial professional development requirements for professional accountants, which are established in Law No. 20.488 of 1973. A university accounting degree, which includes practical experience, is the only requirement to register as a public accountant.

To practice accountancy, including auditing, individuals that graduated from the university must register and obtain licenses with the professional council of their jurisdiction. In addition, auditors providing services to financial sector regulators are subject to additional practical experience requirements established by the regulators.

The Federación Argentina de Consejos Profesionales de Ciencias Económicas—a federation composed of 24 provincial councils—has established voluntary continuing professional development (CPD) requirements that individuals comply with through its Professional Development Federal System (SFAP).

Only a selection of the IES requirements, such as holding a university accounting degree and practical experience, appear to have been adopted as part of national accountancy education requirements. Further clarification on how these address the 2019 IES is also necessary.

Current Status: Partially Adopted

Only companies using IFRS are required to prepare annual audited financial statements. This includes listed companies, financial institutions, and other companies (excluding insurance companies).

The financial sector regulators—the Central Bank (BCRA), the National Securities Commission (CNV), and the Superintendence of Insurance (SSN) — are empowered to set sector-specific audit rules for the companies they regulate. The CNV requires the application of ISA as adopted by Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE). However, auditors providing services to companies regulated by the BCRA and SSN must apply national auditing standards and specific auditing regulations issued by the regulators.

The FACPCE, through its Accounting and Auditing Standard-Setting Board (CENCyA), issued TR No. 32 in 2012, adopting ISA by reference for other companies using IFRS. In accordance with the Law No. 20.488 of 1973 each provincial council also has the legal authority to issue rules regulating the accountancy profession in its jurisdiction, including setting audit standards for all other companies not covered by financial sector regulators. In practice, all provincial councils defer to the standards issued by the FACPCE.

Current Status: Partially Adopted

The Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE)—the national voluntary PAO of a federated system—and the provincial councils, under Law No. 20.488 of 1973, use a national Code of Ethics developed before 2004 and not based on the IESBA Code of Ethics. As reported by FACPCE, not all provincial councils use the unified national Code.

FACPCE adopted the independence aspects of the IESBA Code of Ethics through Technical Resolution (TR) No 34 of 2012. The TR is mandatory only for auditors providing services to listed companies and has been officially endorsed by the National Securities Commission (CNV), through its General Resolution No 663 of 2016. No plans to adopt the current version of the IESBA Code of Ethics have been reported.

Current Status: Not Adopted

Law No. 24.156 of 1992 empowers the National Accounting Office (CGN) to set public sector accounting standards. Argentina has adopted national standards, Argentine GAAP, on an accrual basis, as the public sector accounting standards (IFAC/CIPFA International Public Sector Financial Accountability Index 2020).

Although IPSAS have not been adopted in Argentina, the CGN has reportedly started a process to develop public sector accounting standards that are harmonized with accrual-basis IPSAS. The timeframe for the adoption is not clear.

Current Status: Not Adopted

Law No. 24.156 of 1992 empowers each provincial council with the right to establish and implement investigative and disciplinary (I&D) procedures for its professionals within its jurisdiction. As reported by the Federación Argentina de Consejos Profesionales de Ciencias Económicas—the national voluntary PAO of a federated system—the provincial councils have established I&D systems; however, it is unclear to what extent the provincial I&D systems comply with the best practices of SMO 6.

Current Status: Partially Adopted

As part of its general prerogatives as defined in Law No. 20.488 of 1973, each provincial council within its jurisdiction is authorized to set accounting standards for all companies, except for financial sector companies, as described below. In practice, provincial councils defer to the accounting standards issued by the Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE). FACPCE administers the Accounting and Auditing Standard-Setting Board (CENCyA), the technical and standard-setting body, which drafts standards for FACPCE approval. In turn, FACPCE-issued standards must still be adopted by the provincial professional councils to become mandatory for application in their jurisdictions. FACPCE issued Technical Resolution (TR) No 26 in 2009, which adopts IFRS and IFRS for Small- and Medium-sized Enterprises (SMEs) by reference.

Financial sector regulators—the Central Bank (BCRA), the National Securities Commission (CNV), and the Superintendence of Insurance (SSN)—are also authorized to set sector-specific accounting rules for the companies they regulate. Listed companies are required to use IFRS per CNV Resolution No. 576 of 2010. Financial institutions are required to use IFRS, except for IFRS 9, by the BCRA Communication A6114, as amended. Insurance companies apply accounting regulations issued by the SSN and plan to adopt IFRS, but no specific date has been announced.

Current Status: Partially Adopted

Relevant Organizations

• Banco Central de la República de Argentina
• Comisión Nacional de Valores República de Argentina (CNV)
• Federación Argentina de Consejos Profesionales de Ciencias Económicas (FACPCE)
• National Accounting Office (CGN)
• Superintendencia de Seguros de la Nación

Relevant Legislation

• Commercial Companies Law No. 19.550\
• Code of Commerce
• CNV, Resolution No. 576 of 2010
• FACPCE, Technical Resolutions
• Law 20.488 of 1973
• Law No. 24.156 of 1992

Relevant Publications

• FACPCE, SMO Action Plan, 2023.
• IFRS Foundation, IFRS Application Around the World, Jurisdictional Profile: Argentina, June 2016.
• World Bank, Report on the Observance of Standards and Codes: Accounting and Auditing, Argentina, 2007.