Costa Rica

The financial reporting framework in Costa Rica is established by the Código de Comercio (Commercial Code), Law No. 3284 of 1964, which requires companies to maintain accounting records and provides the general legal framework for corporate financial reporting. Responsibility for accounting and auditing requirements is shared between the Colegio de Contadores Públicos de Costa Rica (CCPACR) and the National Council for Supervision of the Financial System (CONASSIF), depending on the type of entity.

Under Law No. 1038 of 1947, CCPACR is authorized to regulate the public accountancy profession and to establish accounting and auditing standards for non-regulated entities. In this capacity, CCPACR has adopted IFRS Accounting Standards as issued by the International Accounting Standards Board for application in Costa Rica. CCPACR reaffirmed full adoption of IFRS through Circular No. 06-2022-R and, according to the IFRS Foundation, IFRS are adopted by reference and without modification. CCPACR has also adopted the Norma Internacional de Información Financiera para las Pequeñas y Medianas Entidades (IFRS for SMEs).

For regulated entities, Law No. 7732 of 1997 established CONASSIF as the coordinating authority over the financial sector supervisory framework. Regulated entities—including banks, securities market participants, pension entities, and insurance companies—are subject to sectoral regulation issued under CONASSIF. Costa Rica’s financial reporting regulation for supervised entities requires the application of IFRS, with certain sector-specific provisions and phased implementation requirements in the financial sector. Public issuers are also required to apply IFRS under the applicable CONASSIF framework.

Further supporting IFRS implementation, the General Directorate of Taxation issued Resolution No. DGT-R-029-2018, which clarifies the application of IFRS in relation to tax rules. In addition, Decree No. 43198-H requires accounting systems used to generate tax information to apply the accounting standards issued by CCPACR.

With respect to auditing standards, CCPACR is responsible for establishing auditing requirements for non-regulated entities and has adopted the Spanish translation of the International Standards on Auditing as issued by the International Auditing and Assurance Standards Board. CCPACR ratified this adoption through Circular No. 03-2022-R, which also reflects the international quality management and assurance pronouncements then in force.

For regulated entities, the Reglamento General de Auditores Externos requires supervised entities to undergo an annual external audit conducted by eligible auditors registered in the relevant public registry. That regulation also empowers the supervisory framework to oversee auditors of regulated entities. In practice, external auditors of regulated entities are required to apply the auditing standards approved in Costa Rica. Private companies are not generally subject to a statutory audit requirement under the Commercial Code; however, where an audit is performed, it is conducted by authorized public accountants under the framework established by CCPACR.

In Costa Rica, the accountancy profession is regulated at both the state and professional levels. At the state level, auditors of regulated entities fall under the supervisory framework coordinated by the National Council for Supervision of the Financial System (CONASSIF), together with the General Superintendence of Financial Entities (SUGEF), the General Superintendence of Securities (SUGEVAL), the Superintendence of Pensions (SUPEN), and the General Superintendence of Insurance (SUGESE). At the professional level, Law No. 1038 of 1947 and Law No. 1269 of 1951 establish two distinct segments of the profession: contadores públicos autorizados and contadores privados, regulated by the Colegio de Contadores Públicos de Costa Rica (CCPACR) and the Colegio de Contadores Privados de Costa Rica (CCPRCR), respectively.

The CCPACR regulates contadores públicos autorizados, who are authorized to perform public accountancy and audit work. The CCPRCR regulates contadores privados, including accountants and accounting technicians engaged primarily in bookkeeping, accounting, and financial statement preparation.

Universities and the professional accountancy organizations both play a role in the entry requirements for the profession. Universities award the relevant academic qualifications, while the professional bodies establish the incorporation requirements for membership. For admission to CCPACR, candidates must hold a university degree in accounting, demonstrate two years of professional experience, and successfully complete the Seminario de Deontología en Contaduría Pública and its related assessment.

Auditors providing services to regulated entities must comply with the Reglamento General de Auditores Externos issued under the CONASSIF framework. Regulated entities are required to appoint external auditors from the Registro de Auditores Elegibles, which is administered by SUGEVAL on behalf of the supervisory authorities. To be eligible, the audit firm, engagement partner, and responsible audit personnel must be registered and active with CCPACR, satisfy relevant experience requirements, and comply with independence and rotation rules.

The superintendencies are empowered to verify compliance with these requirements, review supporting audit documentation, and remove auditors or firms from the registry where regulatory conditions are no longer met or sanctions apply. Audits of supervised entities must be conducted in accordance with the International Standards on Auditing as adopted by CCPACR.

Under Law No. 1038 of 1947, CCPACR is responsible for maintaining the registry of its members, establishing accounting and auditing standards for non-regulated entities, setting ethical requirements, operating investigation and discipline arrangements, and supporting the development of the profession. Under Law No. 1269 of 1951, CCPRCR is responsible for maintaining the registry of contadores privados and regulating the ethical and disciplinary framework applicable to its members.

There is no independent public audit oversight authority in Costa Rica operating separately from the existing financial supervisory framework and the professional accountancy organization. Auditors in the jurisdiction are regulated at both the state and professional levels.

At the state level, auditors providing services to regulated entities are supervised by the financial sector regulators—the General Superintendence of Securities (SUGEVAL), the General Superintendence of Financial Entities (SUGEF), the Superintendence of Pensions (SUPEN), and the General Superintendence of Insurance (SUGESE)—under the coordination of the National Council for Supervision of the Financial System (CONASSIF). CONASSIF is responsible for providing uniformity and integration to the regulation and supervision of the Costa Rican financial system.

For regulated entities, external auditors must be included in the Registro de Auditores Elegibles, which is administered by SUGEVAL on behalf of the supervisory authorities. The superintendencies are empowered to verify compliance with eligibility, independence, and professional requirements, review audit-related documentation, and remove auditors or firms from the registry where regulatory conditions are no longer met or significant deficiencies are identified.

At the professional level, auditors are also subject to regulation by the Colegio de Contadores Públicos de Costa Rica (CCPACR), which is responsible for maintaining the registry of authorized public accountants, establishing ethical requirements, operating the investigation and discipline system, and conducting quality assurance reviews of its members.

Accordingly, audit oversight in Costa Rica is carried out through a shared regulatory framework involving the financial sector regulators for supervised entities and CCPACR for the profession more broadly, rather than through a separate independent audit oversight body. Further details on these arrangements are set out in the Regulation of the Accountancy Profession section.

The Colegio de Contadores Públicos de Costa Rica (CCPACR)

The Colegio de Contadores Públicos de Costa Rica (CCPACR), established under Law No. 1038 of 1947, is the mandatory professional accountancy organization regulating practitioners in the public accountancy and auditing profession. Its members, known as contadores públicos autorizados, have the legal authority to provide public accounting services and perform statutory audit engagements where required under applicable laws and regulations.

In accordance with its legal mandate, CCPACR is responsible for: (i) maintaining the registry of authorized public accountants; (ii) establishing accounting and auditing standards for non-regulated entities; (iii) setting ethical requirements for its members; (iv) operating an investigation and discipline system; (v) establishing and operating a quality assurance review system; (vi) contributing to the development of professional accountancy education requirements; and (vii) representing and promoting the profession of authorized public accountants in Costa Rica.

In addition to being an IFAC Member, CCPACR is a member of the Inter-American Accounting Association and the Group of Latin American Accounting Standard Setters.

The Colegio de Contadores Privados de Costa Rica (CCPRCR)

The Colegio de Contadores Privados de Costa Rica (CCPRCR), established under Law No. 1269 of 1951, is the professional accountancy organization representing contadores privados, including accountants and accounting technicians primarily engaged in bookkeeping, accounting, and financial statement preparation.

In accordance with its legal mandate, CCPRCR is responsible for: (i) maintaining the registry of private accountants; (ii) establishing ethical requirements for its members; and (iii) implementing an investigation and discipline system applicable to its membership.

In accordance with Law No. 1038 of 1947, the Colegio de Contadores Públicos de Costa Rica (CCPACR) is empowered to establish and operate a quality assurance (QA) review system for all audits of financial statements performed by contadores públicos autorizados. CCPACR has established a mandatory QA review system that is operational for all mandatory audits and aligned with the requirements of SMO 1.

To fulfill its mandate, CCPACR has established a Quality Control Commission and a Quality Control Unit within its Oversight Department. The QA framework includes periodic reviews of audit firms and independent practitioners, review reports with observations and recommendations, and follow-up procedures. CCPACR previously reported that reviews had been completed for all registered audit firms and that reviews of independent practitioners had also been undertaken.

In line with the effective date of the IAASB quality management standards, the jurisdiction is expected to apply International Standard on Quality Management 1 and International Standard on Quality Management 2 as part of the applicable quality management framework. Accordingly, the QA review system is considered operational and aligned with the current SMO 1 requirements.

In addition, the financial sector regulators—the General Superintendence of Securities (SUGEVAL), the General Superintendence of Financial Entities (SUGEF), the Superintendence of Pensions (SUPEN), and the General Superintendence of Insurance (SUGESE)—under the coordination of the National Council for Supervision of the Financial System (CONASSIF), are authorized by law to establish oversight mechanisms for audits of regulated entities. In practice, CCPACR performs the quality assurance reviews across the profession, while regulators primarily review compliance with legal and regulatory requirements and may inspect audit working papers and findings in respect of regulated entities.

Current Status: Adopted

In Costa Rica, universities, the Colegio de Contadores Públicos de Costa Rica (CCPACR), and the Colegio de Contadores Privados de Costa Rica (CCPRCR) share responsibility for implementing initial professional development requirements for professional accountants under Law No. 1038 of 1947 and Law No. 1269 of 1951. Universities are responsible for awarding academic qualifications, while the professional accountancy organizations establish the requirements for professional membership and practice.

To be eligible to practice as a contador público autorizado, individuals are required to hold a university degree in accounting, demonstrate at least two years of professional experience, complete the Seminario de Deontología en Contaduría Pública, and successfully pass the related ethics assessment prior to admission to CCPACR membership.

For contadores privados, candidates are generally required to obtain an accounting or business administration degree from a university or technical institute and become members of CCPRCR. Based on available information, no minimum practical experience requirement has been identified for this segment of the profession.

A number of the International Education Standards requirements are reflected in the national framework, including entry requirements (IES 1), learning outcomes relating to professional ethics (IES 4), and practical experience requirements for contadores públicos autorizados (IES 5). However, based on currently available authoritative information, a formal final professional competence assessment aligned with IES 6 and mandatory continuing professional development requirements aligned with IES 7 and IES 8 are not demonstrably required for all professional accountants in the jurisdiction.

Accordingly, only some of the requirements of the International Education Standards in effect as of the time of the assessment are demonstrably adopted for all segments of the profession.

Current Status: Partially Adopted

The Colegio de Contadores Públicos de Costa Rica (CCPACR) is responsible for establishing auditing standards for non-regulated entities in accordance with Law No. 1038 of 1947. CCPACR has adopted the Spanish translation of the International Standards on Auditing as issued by the International Auditing and Assurance Standards Board by reference and without modification. In 2022, CCPACR issued Circular 03-2022-R to ratify the adoption of ISA and related international assurance and quality management pronouncements in force at that time.

For regulated entities, Law No. 7732 of 1997 grants the National Council for Supervision of the Financial System (CONASSIF) authority over the regulatory framework applicable to banks, insurance companies, listed entities, and pension funds. CONASSIF’s Reglamento General de Auditores Externos requires the application of the International Standards on Auditing as approved by CCPACR for audits of supervised entities.

Accordingly, ISA in their entirety in effect as of the time of the assessment are adopted and required to be applied in all mandatory audits in the jurisdiction.

Current Status: Adopted

Law No. 1038 of 1947 grants the Colegio de Contadores Públicos de Costa Rica (CCPACR) the authority to establish ethical requirements for its members, who are contadores públicos autorizados. CCPACR has developed its own Code of Ethics, which is based on the 2012 IESBA Code of Ethics. Based on available authoritative information, CCPACR was in the process of updating its Code in 2022 to align with the 2021 International Code of Ethics; however, full adoption of a 2018-or-later version of the Code has not been demonstrably confirmed as of the time of the assessment.

The Colegio de Contadores Privados de Costa Rica (CCPRCR), established under Law No. 1269 of 1951, is responsible for establishing ethical requirements for contadores privados. The ethical framework applicable to CCPRCR members is not based on the IESBA Code.

For auditors providing services to regulated entities, Law No. 7732 of 1997 empowers the National Council for Supervision of the Financial System (CONASSIF) to establish ethical requirements. CONASSIF’s Regulation 32–10 requires external auditors of regulated entities to comply with the International Code of Ethics as issued by the IESBA.

Accordingly, a pre-2018 version of the Code remains the primary ethical framework for CCPACR members and the IESBA Code has not been adopted for all professional accountants in the jurisdiction. Under the current assessment methodology, the jurisdiction is therefore assessed as Not Adopted.

Current Status: Not Adopted

In accordance with Law No. 8131 of 2001, the National Accounting Office, under the authority of the Ministry of Finance, is responsible for establishing public sector accounting and reporting standards in Costa Rica.

Costa Rica adopted accrual-basis International Public Sector Accounting Standards through Executive Decree No. 34918-H and subsequent amendments. Most recently, Resolution DCN-0003-2021, published in March 2021, adopted the 2018 version of accrual-basis IPSAS and replaced the previously applicable 2014 version.

Implementation was further reinforced through Regulation No. 41641-H under Law No. 9635, which required all non-financial public sector entities to adopt and apply IPSAS by the first business day of January 2023.

Based on the most recent available implementation data published by the National Accounting Office and referenced in the CCPACR SMO Action Plan, public sector entities continue to demonstrate varying levels of compliance with the 2018 IPSAS framework, and entities not yet at full compliance are required to maintain action plans to close remaining gaps.

Accordingly, accrual-basis IPSAS have been adopted and are in phased implementation across the public sector; however, full demonstrable application by all public sector entities has not yet been confirmed as of the time of the assessment. The jurisdiction is therefore assessed as Partially Adopted.

Current Status: Partially Adopted

In Costa Rica, the Colegio de Contadores Públicos de Costa Rica (CCPACR) and the Colegio de Contadores Privados de Costa Rica (CCPRCR), under Law No. 1038 of 1947 and Law No. 1269 of 1951, respectively, are empowered to investigate and discipline professional accountants within their membership categories.

CCPACR has established and implemented an investigation and discipline (I&D) system for its members, who are contadores públicos autorizados. Based on available information, CCPACR has concluded that its I&D mechanism is aligned with the requirements of revised SMO 6 and operates as an established and functioning system.

CCPRCR has also established and implemented an I&D system for contadores privados; however, based on the information currently available, it has not been possible to demonstrate that this framework fully incorporates the requirements of SMO 6.

In addition, the financial sector regulators—the General Superintendence of Securities (SUGEVAL), the General Superintendence of Financial Entities (SUGEF), the Superintendence of Pensions (SUPEN), and the General Superintendence of Insurance (SUGESE)—under the coordination of the National Council for Supervision of the Financial System (CONASSIF), are authorized by law to investigate and discipline auditors providing services to regulated entities.

However, additional information is required regarding the extent to which the enforcement mechanisms operated by the financial sector regulators align with the best practices and requirements of SMO 6.

Current Status: Partially Adopted

In accordance with Law No. 1038 of 1947, the Colegio de Contadores Públicos de Costa Rica (CCPACR) is responsible for establishing accounting standards for non-regulated entities in Costa Rica. CCPACR has adopted IFRS Accounting Standards by reference and without modification since 2001, ratified their application in 2005, and adopted the Norma Internacional de Información Financiera para las Pequeñas y Medianas Entidades (IFRS for SMEs) in 2009, with confirmation in 2018.

In 2022, CCPACR issued Circular 06-2022-R to ratify the adoption of IFRS Accounting Standards and related pronouncements in force at that time.

Further supporting implementation, the General Directorate of Taxation adopted IFRS through Resolution No. DGT-R-029-2018, and Decree No. 43198-H requires accounting systems used to generate tax information to apply the accounting standards issued by CCPACR.

For regulated entities, accounting standards are established within the supervisory framework coordinated by the National Council for Supervision of the Financial System (CONASSIF). CONASSIF’s regulatory framework, including Regulation No. 34-2002 and subsequent provisions, requires the application of IFRS as approved by CCPACR for banks, insurance companies, listed entities, pension entities, and other supervised institutions.

Accordingly, IFRS Accounting Standards in effect as of the time of the assessment are adopted and required to be applied by domestic publicly accountable entities in the jurisdiction.

Current Status: Adopted

Relevant Organizations

• Colegio de Contadores Públicos de Costa Rica (CCPACR)
• Colegio de Contadores Privados de Costa Rica (CCPRCR)
• Consejo Nacional de Supervision del Sistema Financiero (CONASSIF)
• General Superintendence of Financial Entities (SUGEF)
• General Superintendence of Insurance (SUGESE)
• Superintendencia General de Valores (SUGEVAL)
• Superintendence of Pensions (SUPEN)

Relevant Legislation

• Law No. 1038 of 1947 – Law for the Creation of the Professional Organization of Public Accountants
• Law No. 1269 of 1951 – Law for the Creation of the Professional Association of Private Accountants in Costa Rica
• Law No. 7732 of 1997 – Law establishing CONASSIF and the financial supervisory framework
• CONASSIF Regulation 32-10 – General Regulation of External Auditors
• CONASSIF Regulation 34-02 – Accounting Standards Applicable to Supervised Entities
• Resolution No. DGT-R-029-2018 – Tax interpretation criteria for IFRS application
• Decree No. 43198-H (December 2021)

Relevant Publications

• CCPACR, SMO Action Plan, September 2022.
• IFRS Foundation, IFRS Jurisdictional Snapshot-Costa Rica, June 2025.
• World Bank, Report on the Observance of Standards and Codes: Accounting and Auditing, Costa Rica, 2012.