Browse Profiles > Guatemala > International Financial Reporting Standards
  Score Rank
Standards Compliance Index 7.50 out of 100 76
Business Indicator Index 9.15 out of 12 34
Guatemala

International Financial Reporting Standards

Summary
According to the Deloitte & Touche Tohmatsu IAS Plus website, Guatemala replaced national Generally Accepted Accounting Principles (GAAP) with International Financial Reporting Standards (IFRSs), effective for 2002 financial reports. In a 2007 overview of the use of IFRSs in Guatemala, Deloitte & Touche Tohmatsu reports that IFRSs are required for all domestic listed and unlisted companies. However, since 2002, the International Accounting Standards Board (IASB) has been continuously revising IFRSs, and there is no publicly available information as to Guatemala's compliance with the most recent set of IFRSs.

    General Overview

    According to the Deloitte & Touche Tohmatsu IAS Plus website, Guatemala replaced its national Generally Accepted Accounting Principles (GAAP) with International Financial Reporting Standards (IFRSs), effective for 2002 financial reports. In a 2007 overview of the use of IFRSs in Guatemala, Deloitte & Touche Tohmatsu reports that IFRSs are required for all domestic listed and unlisted companies. In its 2007 self-assessment, the Institute of Public Accountants and Auditors of Guatemala (IGCPA) states that accounting standards for listed and non-listed entities are the same. The 2007 IGCPA assessment explains that Guatemalan Accounting Standards are set by a committee of the IGCPA. The IGCPA is responsible for the promulgation and publication of the standards. According to the International Federation of Accountants (IFAC) website, the IGCPA is a member of the IFAC.
    In its 2006 self-assessment, the IGCPA states that the Securities and Commodities Registry (Registro del Mercado de Valores y Mercancias, or RMVM) is the securities market regulator in Guatemala; however, the RMVM does not monitor or enforce compliance of market participants with accounting and auditing requirements. Also, there are no additional financial reporting requirements for listed entities. The Superintendence of Banks (Superintendencia de Bancos, or SdB) is the regulator for banks and similar financial institutions, as well as insurance companies. The SdB proposes accounting standards for banks and insurance companies and publishes these proposals in an "Accounting Instructional Handbook for Entities under the Vigilance and Inspection of the SdB" ("Manual de Instrucciones Contables para Entidades Sujetas a la Vigilancia e Inspeccion de la SdB"). There is no supervisor for non-banking financial institutions. The National Stock Exchange (Bolsa de Valores Nacional, the Global Stock Exchange (Bolsa de Valores Global), and the National Agricultural Stock Exchange (Bolsa Agricola Nacional) monitor and enforce accounting and auditing regulations by requiring that audits be conducted by external auditors.
    According to the 2007 IGCPA's self assessment, Guatemala applies a national Code of Ethics (Normas de Etica Profesional para Graduados en CPA) issued by the Association of Economist, Public Accountants, Auditors and Business Administrators (Colegio de Economistas, Contadores Publicos y Auditores y Administradores de Empresas) of the IGCPA. The Code is based on the IFAC Code of Ethics effective June 30, 2006.


    The Principles

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

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IFRS 2: Share-based Payment (effective 2005)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IFRS 3: Business Combinations (effective 2004)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IFRS 4: Insurance Contracts (effective 2006)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

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

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

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

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IFRS 7: Financial Instruments: Disclosures (effective 2007)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 1: Presentation of Financial Statements (effective 2007)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 2: Inventories (effective 2005)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 7: Cash Flow Statements (effective 1994)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

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

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

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

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 11: Construction Contracts (effective 1995)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 12: Income Taxes (effective 2001)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 14: Segment Reporting (effective 1998)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

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

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 17: Leases (effective 2005)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 18: Revenue (effective 1995)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 19: Employee Benefits (effective 2006)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

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

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

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

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 23: Borrowing Costs (effective 1995)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 24: Related Party Disclosures (effective 2005)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

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

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

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

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 28: Investments in Associates (effective 2005)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

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

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 31: Interests in Joint Ventures (effective 2005)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

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

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 33: Earnings per Share (effective 2005)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 34: Interim Financial Reporting (effective 1999)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 36: Impairment of Assets (effective 2004)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

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

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 38: Intangible Assets (effective 2004)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

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

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 40: Investment Property (effective 2005)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

    IAS 41: Agriculture (effective 2003)

    There is insufficient information publicly available as to Guatemala's compliance with this principle.

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    Sources of Assessment

    Deloitte & Touche Tohmatsu IAS Plus website. Accessed on July 30, 2007. (Deloitte IAS Plus website)

    Institute of Public Accountants and Auditors of Guatemala, "Assessment of the Regulatory and Standard- Setting Framework," Self-assessment prepared as part of the International Federation of Accountants' (IFAC) Member Body Compliance Program, March 2006. Available from International Federation of Accountants website. Accessed July 30, 2006. (IGCPA 2006)

    Institute of Public Accountants and Auditors of Guatemala, "Response to the IFAC Part 2, SMO Self-Assessment Questionnaire," Self-assessment prepared as a part of the International Federation of Accountants' (IFAC) Member Body Compliance Program, June 2007. Available from International Federation of Accountants website. Accessed on July 30, 2007. (IGCPA 2007)

    Relevant Organizations

    Global Stock Exchange - Bolsa de Valores Global, S.A.

    Institute of Public Accountants and Auditors of Guatemala - Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) (in Spanish only)

    Ministry of Economy - Ministerio de Economia (MoE) (in Spanish only)

    Ministry of Finance - Ministerio de Finanzas Publicas (MoF) (in Spanish only)

    National Agricultural Stock Exchange - Bolsa Agricola Nacional, S.A.

    National Stock Exchange - Bolsa de Valores Nacional, S.A. (BVNSA) (in Spanish only)

    Securities and Commodities Registry - Registro del Mercado de Valores y Mercancias (RMVM) (in Spanish only)

    Superintendence of Banks - Superintendencia de Bancos (SdB) (in Spanish only)



    Relevant Legislation/Regulation

    Law of Banks and Financial Groups Decree No. 19, 2002 - Ley de Bancos y Grupos Financieros Decreto No. 19, 2002

    Securities Market and Commodities Law Decree No. 34, 1996 - Ley del Mercado de Valores y Mercancias Decreto No. 34, 1996 (in Spanish only)

    Code of Ethics for CPA Graduates - Normas de Etica Profesional para Graduados en CPA

    SdB Accounting Instructional Handbook - Manual de Instrucciones Contables de la SdB (in Spanish only)



    Supplementary Sources

    International Federation of Accountants website. Accessed on July 30, 2007. (IFAC website)
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