The Argentine Federation of Professional Councils in Economic Sciences (FACPCE) coordinates the issuance of professional accounting and auditing standards. In 1998, the FACPCE Governing Board implemented a plan to adapt Argentine professional accounting standards to International Financial Reporting Standards (IFRSs) issued by the International Accounting Standard Board (IASB). On December 8, 2000, the FACPCE's governing board approved Technical Resolutions (TRs) 16 through 19, thus completing the first stage of the harmonization plan. New TRs have been issued since then. However, the TRs differ from IFRSs in some respects. According to a 2007 Ernst & Young report, the FACPCE had no plan in place for adapting local TRs to reflect changes in the IFRSs made by the IASB from January 2003 to April 2004 or any changes that might be made in the future. However, the standardization of professional accounting standards across Argentina's provinces included a provision permitting the use of IFRSs, as interpreted by the International Financial Reporting Interpretation Committee. In addition, the FACPCE and the Argentine National Securities Commission are actively discussing the comprehensive adoption of IFRSs for listed companies and other companies of public interest.

General Overview

According to the 2006 KPMG report, the Argentine accounting profession is converging with the US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRSs). However, the national accounting standards still have some differences with IFRSs and also differ across local jurisdictions. Ernst & Young's (E&Y) report in 2007 that the Professional Councils in Economic Sciences (FACPCE) launched a project to incorporate International Accounting Standards (IASs) (now IFRSs) of the International Accounting Standard Board (IASB) in 2000. The project goals included "defining a general framework for Argentine professional accounting standards, including an accounting model consistent with IASs; and... adopting benchmarks or acceptable alternatives contained in certain IAS selected for the first stage of the harmonization plan to the extent that they do not generate significant inconsistencies with the general framework" (p.37). However, the FACPCE has not established a procedure to incorporate the new IASs updated as of January 2003-April 2004.

The 2007 CIA World Factbook states that Argentina's legal system draws on both U.S. and Western European legal traditions. A 2004 report published by Oklahoma City University adds that Argentina's rule of law derives ultimately from Spanish, French, and Italian civil law. The Catholic University of America website notes that the system "is more inquisitorial than adversarial in comparison to the United States," adding that "their laws are stated in detailed codes." Citing Gernon and Meek, LaShaw noted in 2004 that "in most code law countries, accounting principles are national laws" (p.6). In 2005, Escobar reported that Argentina's primary accounting legislation includes the Commercial Code No. 2637 and Section 61 of the Companies Law No. 19.550. The Commercial Code requires that commercial businesses keep records of their commercial transactions and bills, and Section 67 of the Code establishes that records must be retained for 10 years. Section 43 of the Code sets asset and liability balance and verification requirements. The E&Y 2007 report clarifies that the Argentine Commercial Code requires that all 'merchants' are required to prepare within three months after the end of each fiscal year, a balance sheet and income statement, which must be transcribed into the Inventory and Financial Statements Book. Section 61 of the Corporation Law No. 19.550 stipulates that the accounting system should provide for the individualization of the commercial transactions. In its 2007 report, E&Y stated that the Companies Law No. 19.550 requires that business organizations file annual, externally audited financial statements and that corporations and limited partnerships have an internal comptroller (called "Sindico"). In 2003, Britos reported that, in the case of noncompliance, the Publicly-Held Companies Manager of the National Securities Commission (CNV) will call for a legal proceeding.

The CNV is empowered by Decree No. 2884 of 1991 to set the information disclosure requirements for listed companies. In monitoring compliance with accounting and reporting requirements for listed companies, the CNV is joined by the Buenos Aires Stock Exchange (BCBA). According to Britos, the CNV's Publicly Held Companies Manager analyzes company financial statements, whereas the BCBA examines the documentation received by listed companies and sends a report to the CNV. The BCBA website states that within 70 days of the close of each calendar year and at least 10 days prior to the board meeting, listed companies must present the following documentation: income statement, retained earnings statement, cash flow statement, consolidated balance sheet, financial statement information report, internal audit committee report on the company's economic and financial situation, auditor's report, English report for foreign investors based on the U.S. dollar, and annexes covering the composition and evolution of inventory. Within 24 hours of the conclusion of the board meeting, companies must provide the BCBA with the annual statement, a net worth statement, and a report on dividends and capitalization on accounting adjustments and reserves. Listed companies with capital in excess of US$60 million or revenues exceeding US$100 must also provide quarterly documentation of shares and securities holdings. Within 42 days of the close of the calendar year, accounting documentation must be made available, and occasional reports relating to future performance must also be submitted. E&Y added that this information, along with a summary of board meeting proceedings is to be published in the Bulletin of the Stock Exchange. Subsidiaries and affiliates must also file quarterly financial statements.

As a member of the International Federation of Accountants (IFAC), the FACPCE has completed Part 2 of the IFAC self-assessment survey and included its results in the FACPCE 2007 report. The survey found that the legal and regulatory framework comprises a set of accounting standards to be used for the preparation of financial statements by private listed entities. This framework empowers a national standard-setter to issue such accounting standards. While the FACPCE proposes the standards to be followed, the Exchanges and the CNV decide upon their adoption. Provincial professional councils may develop their own local standards. The FACPCE has expressed the goal of converging the national accounting standards for listed entities with IFRSs. There are projects underway to promote IFRSs among companies' managers, accountants, and the CNV, and to establish a commission (composed by accounting professionals and the CNV) to establish an implementation timetable and develop a training program to facilitate IFRSs adoption. To assist in this process, the FACPCE reaches out to the interested public through national meetings, conferences, and workshops with the CNV's authorities and business associations. It also provides training on IFRSs and coordinates regional seminars on the subject. The FACPCE recognizes that, for listed entities, the law and regulations require the use of national standards with no reference to IFRSs.

Both the 1999 report by the International Monetary Fund (IMF) and the 2007 E&Y report noted that the BCRA issues accounting and auditing standards to be used by banks and other financial institutions, which must be consistent with the guidelines set by the FACPCE and with the U.S. GAAP. The IMF report added that balance sheets must be submitted semiannually by the controlling shareholders and must include the opinion of a certified public accountant. E&Y noted that annual financial statements must be presented by financial institutions within 60 days following the end of the fiscal year. The IMF added that insurance supervision is governed by the Insurance Contract Act of 1967, the Insurance Companies Law of 1973, and the Insurance Agents Registry Law of 1981. The Superintendency of Insurance is responsible for monitoring compliance and enforcement of insurance requirements. E&Y listed a number of other entities charged with monitoring the performance of different types of business. These include the Superintendency of Pension Fund Managers, which oversees pension fund managers; the Superintendency of Workers Compensation Insurance Companies, which controls workers compensation insurance companies; and the General Inspection of Justice; which supervises stock corporations, branches of foreign entities, civil associations, and foundations .

E&Y's report stated that "the basic accounting and reporting standards are specifically defined and governed by statutory provision.... Legal standards concerning accounting matters may only be issued by the Federal and Provincial Governments that are entitled to set them by law or by resolutions of governmental agencies to which special legislative powers have been delegated in the particular subject" (pp. 33, 42). Argentina is comprised of 23 provinces and the capital city of Buenos Aires. The 23 provinces and Buenos Aires city each have their own professional economic councils that are charged with designing accounting and auditing standards for their own jurisdiction. According to Britos 2003, all professional councils must immediately inform the CNV of any standard violations. Except for Buenos Aires city, all professional councils are members of the FACPCE. E&Y noted that efforts have been made to harmonize national accounting standards. For instance, in July 2004, the Professional Council in Economic Sciences of the City of Buenos Aires and the FACPCE declared their intent to join the federation and institute a single, national accounting and auditing standard. However, as of January 2008, harmonization had yet to be achieved.

E&Y reported that the FACPCE is charged with coordinating the introduction of standards. The FACPCE created the Scientific and Technical Studies Center and the Special Committee for Accounting and Auditing Standards (CENCYA) to propose accounting and auditing standards. First, the CENCYA suggests accounting and auditing standards. Second, professional councils and other interested parties comment on the drafts within a fixed period of time. Finally, drafts are approved through the issuance of a technical resolution (TR).

E&Y reported that in 1998 the FACPCE announced its goal of converging Argentina's professional accounting standards with IASs. TRs 16-19, approved in December 8th 2000, were the first steps toward this convergence. In 2004, Gil reported that all IASs have been taking into consideration for the convergence process, except for IAS1, IAS19, IAS20, IAS26, and IAS30. However, Gil acknowledged plans to adopt IAS19 and IAS26 in the future. E&Y stated that TR23, issued in 2006, was based on IAS19. Although E&Y stated that there were no established procedures to incorporate post-2003 changes to the IASs into Argentine TRs, it noted that where no accounting standard was available, IASB standards were to be used as a benchmark. In addition, E&Y reported that both the FACPCE and the CNV anticipated the introduction of IFRSs for publicly traded companies. Also, accounting standards were being contemplated for small and medium-size companies.

In 2004, Deloitte & Touche reported significant differences between the national accounting standards and IFRSs, particularly those dealing with statement for inflation, deduction of selling expenses from realization values, accounting for loss contingencies, deferred assets and liabilities and intangible assets. In that same year, Voss reported that Argentina had minimized these differences, but Voss's findings were for the year 2000, and since that time IFRSs have undergone revision. As a result, Argentina's professional accounting standards once again significantly diverge from the existing IFRSs. The IFAC website notes that the FACPCE is an IFAC member.

The Principles

IFRS 1: First-time Adoption of International Financial Reporting Standards (effective 2006)

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There is no publicly available information as to Argentina's compliance with this principle. However, the IASB website notes that IFRS 1: First-time Adoption of International Financial Reporting Standards, was issued in June 2003 and applies to entities whose first IFRS financial statement are prepared for a period beginning on or after January 1, 2004. In June 2005, the IASB issued amendments to IFRS 1. The amendments clarify the IASB's intentions with respect to an exemption provided to first-time adopters of IFRSs who choose to adopt IFRS 6 before January1, 2006. The effective date of these amendments was January 1, 2006.

IFRS 2: Share-based Payment (effective 2005)

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There is no publicly available information as to Argentina's compliance with this principle. According to Deloitte & Touche, IFRS 2: Share-based Payment was issued in February 2004 and applies to annual periods beginning on or after January 1, 2005.

IFRS 3: Business Combinations (effective 2004)

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According to E&Y 2007, in 2000 FACPCE issued TR18, which deals with goodwill, reorganizations, business combinations, and spin-offs. However, Deloitte notes that IFRS 3: Business Combinations was issued in March 2004 and is applicable for business combinations for which the adoption date is on or after March 31, 2004. As of March 2007, the FACPCE had no defined plans on how local TRs would be amended to accommodate IFRS revisions after 2003.

IFRS 4: Insurance Contracts (effective 2006)

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There is no publicly available information as to Argentina's compliance with this principle. The Deloitte website notes that IFRS 4: Insurance Contracts, was issued in March 2004 and is applicable for annual periods beginning on or after January 1, 2005. On August 18, 2005, the IASB amended the scope of IAS 39 to include financial guarantee contracts issued. However, if an issuer of financial guarantees contracts has previously asserted explicitly that it regards such contracts as insurance contracts and has used accounting applicable to insurance contracts, the issuer may elect to apply either IAS 39 or IFRS 4. The amendments to IAS 39 and IFRS 4 are effective for annual periods beginning on or after January 1, 2006, with earlier application encouraged.

IFRS 5: Non-current Assets Held for Sale and Discontinued Operations (effective 2005)

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There is no publicly available information as to Argentina's compliance with this principle. The Deloitte website notes that IFRS 5: Non-current Assets Held for Sale and Discontinued Operations was issued in March 2004 and is applicable for annual periods beginning on or after January 1, 2005.

IFRS 6: Exploration for and Evaluation of Mineral Resources (effective 2006)

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There is no publicly available information as to Argentina's compliance with this principle. According to the IASB website, IFRS 6: Exploration for and Evaluation of Mineral Assets was issued in December 2004 and is applicable for annual periods beginning on or after January 1, 2006.

IFRS 7: Financial Instruments: Disclosures (effective 2007)

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There is no publicly available information as to Argentina's compliance with this principle. According to the Deloitte website, IFRS 7: Financial Instruments: Disclosures was issued on August 18, 2005 and is applicable for annual periods beginning on or after January 1, 2007.

IAS 1: Presentation of Financial Statements (effective 2007)

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There is no publicly available information as to Argentina's compliance with this principle. According to Gil, 2004 all IAS have been considered for the convergence process except for IAS1, IAS19, IAS20, IAS26 and IAS30. The effective date of IAS1 (revised 2003) was January 1, 2005. However, the IASB further revised IAS1 in August 2005. The IASB amended IAS 1 to add requirements for disclosing the entity's objectives, policies, and processes for managing capital; quantitative data about the entity's capital; whether the entity has complied with any capital requirements; and if it has not complied, the consequences of such non-compliance. These disclosure requirements apply to all entities, effective for annual periods beginning on or after January 1, 2007, with earlier application encouraged.

IAS 2: Inventories (effective 2005)

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Gil 2004 affirmed that IAS2 and the national standard differ. IAS2 does not allow using fair value for inventories and in Argentina replacement costs are used. The Deloitte website notes that the IASB revised IAS2 in December 2003. The revised standard will be effective for the periods commencing on January 1, 2005.

IAS 7: Cash Flow Statements (effective 1994)

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According to E&Y 2007, the FACPCE's TR16-19 were issued in 2000 and took into consideration IAS7, IAS12, IAS14, IAS15, IAS16, IAS17, IAS21, IAS22, IAS23, IAS31, IAS32, IAS33, IAS34, IAS35, IAS36, IAS 37, IAS38, and IAS40. The convergence plan was introduced before any modification to this principle. IAS 7: Cash Flow Statements is applicable for periods beginning on or after January 1, 1994. In its 2004 report, Deloitte & Touche states that "certain companies (i.e. with a net worth not exceeding an amount periodically established by the Companies law, which do not quote their shares, which are not controlled by one of such companies, etc.) have the option not to present the cash flows statement or comparative information and certain supplementary data" (p.1).

IAS 8: Accounting Policies, Changes in Accounting Estimates and Errors (effective 2005)

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There is no publicly available information as to Argentina's compliance with this principle. According to Gil 2004, all IAS have been considered for the convergence process in 2000 except for IAS1, IAS19, IAS20, IAS26, and IAS30. However, the Deloitte website notes that the IASB revised IAS8 in December 2003. The revised standard will be effective for the periods commencing on January 1, 2005. As of March 2007, the FACPCE had no procedure to harmonize local TRs with revisions to IASs since 2003. According to the 2004 Deloitte and Touche report "under Argentine law, dividends may only be declared upon statutory retained earnings. Accumulated losses may be offset against outstanding balances in surplus account, including surpluses arising from the restatement of capital contributions to account for inflation" and "Argentine GAAP require restatement when comparative statements are presented and are charged to the beginning balance of retained earnings when a single year is disclosed" (p.4).

IAS 10: Events after the Reporting Period (effective 2005)

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There is no publicly available information as to Argentina's compliance with this principle. According to Gil 2004, all IAS have been considered for the convergence process in 2000 except for IAS1, IAS19, IAS20, IAS26, and IAS30. However, the Deloitte website notes that the IASB revised IAS8 in December 2003. The revised standard will be effective for the periods commencing on January 1, 2005. As of March 2007, the FACPCE had no procedure to harmonize local TRs with revisions to IASs since 2003. However, the revised IAS 10 Events After the Balance Sheet Date was issued by IASB in December 2003 and is applicable for annual periods beginning on or after January 1, 2005.

IAS 11: Construction Contracts (effective 1995)

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There is no publicly available information as to Argentina's compliance with this principle. According to Gil 2004, all IAS have been considered for the convergence process in 2000 except for IAS1, IAS19, IAS20, IAS26, and IAS30. However, the Deloitte website notes that the IASB revised IAS8 in December 2003. The revised standard will be effective for the periods commencing on January 1, 2005. As of March 2007, the FACPCE had no procedure to harmonize local TRs with revisions to IASs since 2003.

IAS 12: Income Taxes (effective 2001)

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According to E&Y 2007, TRs16-19, issued in 2000, take into consideration IAS7, IAS12, IAS14, IAS15, IAS16, IAS17, IAS21, IAS22, IAS23, IAS31, IAS33, IAS34, IAS36, IAS37, IAS38, and IAS40. The Deloitte website notes that the convergence plan was introduced before any modification to this principle. IAS 12 Income Taxes is applicable for periods beginning on or after January 1, 1998. Based on 2004 Deloitte and Touche report, one of the main differences between national standards and IAS is deferred assets. Argentina requires deferred assets and liabilities to be discounted, while the IAS does not.

IAS 14: Segment Reporting (effective 1998)

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There is no publicly available information as to Argentina's compliance with this principle. According to E&Y 2007, in 2000 TR18: Professional accounting standards: an exposition of certain issues applicable in particular cases was issued at the first stage of the convergence process with the IAS. Even though the date of adoption of the TR 18 varies among professional councils, it has been incorporated by all of them. TR18 complements IAS14 by including special issues. TR 18 deals with segment reporting. The Deloitte website adds that TR18 was issued prior the application of the IAS14 in July 1998.

IAS 16: Property, Plant and Equipment (effective 2005)

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According to E&Y 2007, TRs 16-19, issued in 2000, take into consideration take into consideration IAS7, IAS12, IAS14, IAS15, IAS16, IAS17, IAS21, IAS22, IAS23, IAS31, IAS33, IAS34, IAS36, IAS37, IAS38, and IAS40. However, the Deloitte website notes that the revised IAS16: Property, Plant and Equipment was issued in December 2003 and is applicable to annual periods beginning on or after January 1, 2005. As of March 2007, there were no procedures for adapting TRs to harmonize with revisions to IASs that have occurred since 2003.

IAS 17: Leases (effective 2005)

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There is no publicly available information as to Argentina's compliance with this principle. According to E&Y 2007, in 2000, TR18: Professional accounting standards: an exposition of certain issues applicable in particular cases was issued as the first stage to the convergence process with the IAS. Even though the date adoption of the TR 18 varies among professional councils, it has been incorporated by all of them. TR18 complements IAS17 by including special issues. TR18 deals with standards on leases. However, IAS17 Leases was issued in December 2003 and is applicable to annual periods beginning on or after January 1, 2005. As of March 2007, there were no procedures for harmonizing TRs with IAS revisions occurring after 2003.

IAS 18: Revenue (effective 1995)

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There is no publicly available information as to Argentina's compliance with this principle. According to Gil 2004, all IAS have been considered for the convergence process in 2000 except for IAS 1, IAS19, IAS20, IAS26, and IAS30. The convergence plan was introduced before any modification to this principle by the IAS. The Deloitte website notes that IAS18 Revenue is applicable for periods beginning on or after January 1, 1995.

IAS 19: Employee Benefits (effective 2006)

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According to E&Y 2007, TR23: Employee benefits due after conclusion of the employment relationship and other long-term benefits becomes effective for the fiscal year 2006 and is based on IAS 19. IAS 19 was issued in 1998 and is applicable for periods beginning on or after January 1, 1999. The Deloitte website notes that the IASB revised IAS 19 in December 2004 to take into account options to recognize actuarial gains and losses in full, outside profit or loss, in a statement of changes in equity. The amendment is applicable for periods beginning on or after January 1, 2006.

IAS 20: Accounting for Government Grants and Disclosure of Government Assistance (effective 1984)

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There is no publicly available information as to Argentina's compliance with this principle. According to Gil 2004, all IAS have been considered for the convergence process except for IAS1, IAS19, IAS20, IAS26, and IAS30. The Deloitte website notes that IAS20 is applicable for periods beginning on or after January 1, 1984.

IAS 21: The Effects of Changes in Foreign Exchange Rates (effective 2005)

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There is no publicly available information as to Argentina's compliance with this principle. According to E&Y 2007, TRs 16-19 take into consideration IAS7, IAS12, IAS14, IAS15, IAS16, IAS17, IAS21, IAS22, IAS23, IAS31, IAS33, IAS34, IAS36, IAS37, IAS38, and IAS40. However, the IASB revised IAS 21 in December 2003. The Deloitte website notes that the revised standard took effect for the periods commencing on January 1, 2005. As of March 2007, the FACPCE had no procedures to harmonize TRs with IAS revisions after 2003. The 2004 Deloitte and Touche report notes that "foreign exchange losses arising as a result of the severe devaluation after January 6, 2002, on foreign currency-denominated liabilities existing as of such date should be allocated to the assets acquired, constructed, or manufactured through such financing. In the cases in which there is no direct relationship between the financing and the acquisition, construction or manufacturing of the assets, foreign exchange losses may be allocated to the assets acquired, constructed, or manufactured. In both cases, the assets in question should be stated at the lower of their replacement or remanufacturing cost or the value that results after allocating to them the foreign exchange differences" (p.2). The KPMG&Felaban 2003 report added that "The net equity of overseas affiliates is included in a separate heading as assets. The monetary assets and liabilities are converted at the period-end exchange rate and the non-monetary items are converted at their historic rates. The same procedure applies to permanent investments in companies for which the proportional equity value is located overseas" (P.78).

IAS 23: Borrowing Costs (effective 1995)

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There is no publicly available information as to Argentina's compliance with this principle. According to E&Y 2007, TRs 16-19, issued in 2000, take into consideration IAS7, IAS12, IAS14, IAS15, IAS16, IAS17, IAS21, IAS22, IAS23, IAS31, IAS33, IAS34, IAS36, IAS37, IAS38, and IAS40. The convergence plan was introduced before any modification to this principle. The Deloitte website notes that IAS 23 is applicable for periods beginning on or after January 1, 1995.

IAS 24: Related Party Disclosures (effective 2005)

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According to E&Y 2007, TR21 replaced TR4 and TR5 and incorporated the principle elements of IAS24, IAS 27, and IAS28. However, IAS24 was revised in December 2003. There are no procedures in place to adapt TRs to accommodate IAS revisions occurring after 2003, according to the Deloitte website.

IAS 26: Accounting and Reporting by Retirement Benefit Plans (effective 1998)

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There is no publicly available information as to Argentina's compliance with this principle. According to Gil 2004, all IAS have been considered for the convergence process except for the standards IAS1, IAS19, IAS20, IAS26, and IAS30. However, Gil states that the FACPCE planned to adopt IAS 26. The Deloitte website notes that IAS26 is applicable for periods beginning on or after January 1, 1988.

IAS 27: Consolidated and Separate Financial Statements (effective 2005)

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According to E&Y 2007, TR21 replaced TR4 and TR5 as of 2003 and incorporated the principles of IAS24, IAS27, and IAS28. However, IAS 27 was revised in December 2003 and there are no procedures in place to harmonize local TRs with IAS revisions occurring in 2003 or later. Deloitte and Touche's 2004 report states that national standards demand the presentation of cash flow statement and comparative financial statements. According to the report: "presentation of consolidated statements is mandatory but only as supplemental information; financial statements which include investments in subsidiaries using the equity method remain the basic financial statement; a company has to consolidate its financial statements with its subsidiaries when, as a general rule, its investment in voting stocks gives it the control of the subsidiaries directly, or indirectly through other directly controlled subsidiaries" (p.2). KPMG and Felaban's 2003 report defines the characteristics of a subsidiary of a financial entity in terms of its assets, contingent obligations, and other operations registered in memorandum accounts (options, etc.), such that they account for 10% or more of the estimated financial liability of the local financial entity, including its foreign affiliates. Further, the subsidiary's current fiscal year results must account for 10% or more of the parent entity's current fiscal year results, calculated on homogeneous time bases.

IAS 28: Investments in Associates (effective 2005)

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According to E&Y 2007, TR21 replaced TR4 and TR5 in 2003, incorporating the main elements of IAS24, IAS27, and IAS28. However, IAS28 was revised in December 2003 and there are no procedures in place to harmonize TRs with IAS revisions effective during or after 2003, according to the Deloitte website. The 2004 Deloitte and Touche report describes the different methods to be used to evaluate investment in other companies. If there is significant control, the equity method should be used. If there is no significant influence and the investment is in a non-public company, the fair value should be used. For nonpublic companies, the cost method is the appropriate.

IAS 29: Financial Reporting in Hyperinflationary Economies (effective 1990)

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According to Gil's 2004 report, Argentina's national standard on financial reporting in hyperinflationary economies differs from IAS29. The national standard requires restatements from the beginning of the inflationary period. The FACPE determines when it is an inflationary period. IAS29 allows judgment as to when restatement of financial statements becomes necessary. The 2004 Deloitte & Touche report notes that IASs require financial restatement only in periods of hyperinflation, while the TRs require financial restatement except in periods of stability. Decree No. 664/03 suspended the need to restate financial statements due to inflation The Deloitte website adds that IAS29 is applicable for periods beginning on or after January 1, 1990.

IAS 31: Interests in Joint Ventures (effective 2005)

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There is no publicly available information as to Argentina's compliance with this principle. E&Y's 2007 report notes that TRs 16-19, issued in 2000, take into consideration IAS7, IAS12, IAS14, IAS15, IAS16, IAS17, IAS21, IAS22, IAS23, IAS31, IAS33, IAS34, IAS36, IAS37, IAS38, and IAS40. However, the Deloitte website reports that the revised IAS 31 was issued in December 2003 and is applicable to annual periods beginning on or after January 1, 2005. There are no procedures for harmonizing TRs with IAS revisions occurring on or after January 2003.

IAS 32: Financial Instruments: Disclosure and Presentation (effective 2005)

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There is no publicly available information as to Argentina's compliance with this principle. E&Y's 2007 report notes that TRs 16-19, issued in 2000, take into consideration IAS7, IAS12, IAS14, IAS15, IAS16, IAS17, IAS21, IAS22, IAS23, IAS31, IAS33, IAS34, IAS36, IAS37, IAS38, and IAS40. However, the Deloitte website reports that the revised IAS 32 was issued in December 2003 and is applicable to annual periods beginning on or after January 1, 2005. There are no procedures for harmonizing TRs with IAS revisions occurring in or after January 2003.

IAS 33: Earnings per Share (effective 2005)

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There is no publicly available information as to Argentina's compliance with this principle. According to the E&Y 2007 report, TR18 was issued as the first step in the convergence process with IAS. Even though the date of adoption of the TR18 varies among professional councils, it has been incorporated by all of them. TR18 deals with standard on earnings per common share, but it is only required for the companies with listed stocks and securities. The Deloitte website noted that the revised IAS33 issued in December 2003 and is applicable for annual periods beginning on or after January 1, 2005. There are no procedures in place to harmonize TRs with IAS revisions occurring in or after January 2003.

IAS 34: Interim Financial Reporting (effective 1999)

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There is no publicly available information as to Argentina's compliance with this principle. E&Y's 2007 report notes that TRs 16-19, issued in 2000, take into consideration IAS7, IAS12, IAS14, IAS15, IAS16, IAS17, IAS21, IAS22, IAS23, IAS31, IAS33, IAS34, IAS36, IAS37, IAS38, and IAS40. However, the Deloitte website reported that the revised IAS34 is applicable to annual periods beginning on or after January 1, 1999.

IAS 36: Impairment of Assets (effective 2004)

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There is no publicly available information as to Argentina's compliance with this principle. E&Y's 2007 report notes that TRs 16-19, issued in 2000, take into consideration IAS7, IAS12, IAS14, IAS15, IAS16, IAS17, IAS21, IAS22, IAS23, IAS31, IAS33, IAS34, IAS36, IAS37, IAS38, and IAS40. However, the Deloitte website reports that the revised IAS 36 was issued in Marcy 2004 and is applicable to goodwill and intangible assets acquired in business combinations after March 31, 2004, and to all other assets for annual periods beginning on or after March 31, 2004. The Deloitte website notes that there were no procedures in place to harmonize TRs with IAS revisions occurring on or after January 2003. .

IAS 37: Provisions, Contingent Liabilities and Contingent Assets (effective 1999)

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According to Deloitte & Touche's 2004 report, IAS37 requires accounting for loss contingencies when the probability that the event occurs is greater than the probability that the event does not occur, whereas Argentina requires an accounting for loss contingencies when the probability that the event occurs should be significantly higher than 0. The Deloitte website notes that IAS37 was issued in July 1998 and is applicable for periods beginning on or after July 1, 1999.

IAS 38: Intangible Assets (effective 2004)

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According to the 2007 E&Y report, TRs 16-19, issued in 2000, takes into consideration IAS7, IAS12, IAS14, IAS15, IAS16, IAS17, IAS21, IAS22, IAS23, IAS31, IAS33, IAS34, IAS36, IAS37, IAS38, and IAS40. The Deloitte website noted that the convergence plan was introduced before any modification to this principle. The revised IAS38 was issued in March 2004 and is applied to intangible assets acquired in business combinations after March 31, 2004, and to all other intangible assets for annual periods beginning on or after March 31, 2004. Based on Deloitte and Touche's 2004 report, Argentina allows organization and pre-operative expenses, but IAS38 does not.

IAS 39: Financial Instruments: Recognition and Measurement (effective 2006)

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E&Y's 2007 report states that TR20 was modified to accommodate the main elements of IAS39 in fiscal year 2003. However, IAS 39 Financial Instruments: Recognition and Measurement has been subsequently revised and, as of March 2007, there were no procedures in place to harmonize TRs to reflect IAS revisions occurring during or after January 2003. According to the 2004 Deloitte and Touche report "Argentine GAAP requires that investments be valued at the fair market value at the end of the period net of estimated selling expenses. However, those investments that the Company will hold until their maturity date should be valued at cost, adding the accrued portion of any additional sum to be received at its due date" (p.3).

IAS 40: Investment Property (effective 2005)

NC

According to the E&Y 2007 report, TRs 16-19, issued in 2000, takes into consideration IAS7, IAS12, IAS14, IAS15, IAS16, IAS17, IAS21, IAS22, IAS23, IAS31, IAS33, IAS34, IAS36, IAS37, IAS38, and IAS40. The Deloitte website noted that the revised IAS40 was issued in December 2000, effective March 31, 2004, and to all other intangible assets for annual periods beginning on or after January 1, 2005. Deloitte and Touche's 2004 report states that "Argentine GAAP requires that investments be valued at the fair market value at the end of the period net of estimated selling expenses. However, those investments that the Company will hold until their maturity date should be valued at cost, adding the accrued portion of any additional sum to be received at its due date" (p.3).

IAS 41: Agriculture (effective 2003)

ID

E&Y 2007 and the Deloitte's website report that TR22 became effective for the fiscal year 2005 and is based on the last version of IAS41 applicable since 2003.