On December 28, the National Securities Commission (CNV) and the General Inspectorate of Justice (IGJ) established that the financial statements corresponding to full fiscal years or intermediate periods within the same fiscal year must be expressed in constant or homogeneous currency. The respective resolutions derive from Law 27.468, enacted December 4, which repealed the ban on updating accounting records in the face of inflation.
On the one hand, CNV General Resolution No. 777/18 establishes that the entities audited by this agency must apply the method of restatement of financial statements in homogeneous currency, as established by International Accounting Standard 29 (IAS 29) or Technical Resolution 6 issued by the Argentine Federation of Professional Councils in Economic Sciences (FACPCE), as appropriate. The application will be mandatory for those annual financial statements, for intermediate or special periods, made up to or beyond December 31, 2018.
IGJ General Resolution No. 10/2018, meanwhile, provides that the financial statements corresponding to complete fiscal years or intermediate periods, must be expressed in homogeneous currency. For restatements, the rules issued by FACPCE and adopted by the Professional Council in Economic Sciences of the Autonomous City of Buenos Aires (CPCECABA) must be applied. Decisions adopted by the governing board of the company must be made with accounting information in constant currency.