- National Professional Accountancy Organisation Website: Colegio de Contadores de Chile
- World Bank ROSC Accounting and Auditing Report
Financial Reporting Framework in Chile
Companies regulated by SVS, including insurance companies
Under Chilean Company Law, corporations may be 'open' or 'closed' - loosely corresponding to 'public interest' and 'private interest'. Open corporations (500 or more shareholders) are regulated by the Superintendency of Securities and Insurance (Superintendencia de Valores y Seguros or SVS). Closed corporations may voluntarily register with (and be regulated by) the SVS; over 200 of these closed corporations have opted to do so and are presently on SVS's Securities Registry.
Companies registered with SVS send their audited financial statements to SVS, which posts them on the SVS website.
Chile is moving to adopt IFRSs for all SVS registrants and all SBIF regulated entities over a three-year period from 2009 to 2011, as follows:
- 31 December 2009: IFRS required for major listed (open) companies - 2009 financial statements including 2008 comparative information using IFRSs. Note that a major listed company that feels it is not ready for IFRSs in 2009 may opt, instead, to present Chilean GAAP statements for 2009 (with 2008 comparative data on the same basis), with supplemental 'pro forma' disclosure of expected impact of changing to IFRSs. This latter group would move to IFRSs in 2010.
- 31 December 2010: Smaller listed (open) companies, insurance companies, mutual funds, pension funds, stock brokers and delaers, insurance agents, and companies that issue publicly traded debt securities - plus any of the large listed (open) companies that were unable to switch to IFRSs in 2009 (see above). (In 2010 the SVS permitted insurers to delay the implementation of IFRSs.)
- 31 December 2011: Other entities registered with the SVS (non-issuers who have voluntarily registered)
Click for IFRS Adoption Calendar (Spanish) (PDF 18k, August 2007).
Banks and other financial institutions
Banks and other financial institutions are separately regulated by the Superintendency of Banks and Financial Institutions (SBIF) and must follow the accounting rules issued by the SBIF.
Starting 31 December 2009, IFRSs are required for banks and other financial institutions regulated by SBIF - 2009 financial statements including 2008 comparative information using IFRSs.
Note, however, that the SBIF is:
- requiring banks to measure loan loss provisions using an expected loss approach (with note disclosure of the IAS 39 pamount) and
- prohibiting the 'fair value option' in IAS 39.
Non-listed companies not registered with SVS
Non-listed companies that do not fit into one of the three above categories will be required to follow accounting standards 'based on IFRSs' being developed by the Accounting Standards Board of the Colegio de Contadores (the Chilean professional accountancy body). They must use those standards in their consolidated and separate company statements.
Click for Plan for Adoption of Standards for Non-SVS Companies (Spanish) (PDF 215k, December 2007).
IFRS for SMEs
In December 2010, the Chilean Government has agreed to require the IFRS for SMEs for all entities that are not publicly accountable starting in 2013. Formal announcement of the details has not yet taken place.