Luis Fuentes, a finance specialist and international business expert, serves as Corporate Affairs Director at Alligare International LLC and leads Estudio Fuentes. With over 10 years of experience, he excels in financial advisory, business internationalization, and strategic corporate solutions, helping companies in Latin America, Europe, and Asia expand globally.
Learn about accounting standards in Peru, including IFRS compliance, regulatory updates, and key business requirements for companies.
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What are the accounting standards in Peru and how do they affect businesses?
Peru’s accounting system follows the International Financial Reporting Standards (IFRS) set by the International Accounting Standards Board (IASB). The Peruvian Accounting Standards Council (CNC) officially endorses IFRS for private companies (International Federation of Accountants [IFAC], 2025). These standards are critical for businesses seeking international growth, regulatory compliance, and financial credibility.
What are the accounting standards in Peru?
Peru’s accounting system follows the International Financial Reporting Standards (IFRS) set by the International Accounting Standards Board (IASB). The Peruvian Accounting Standards Council (CNC) officially endorses IFRS for private companies (International Federation of Accountants [IFAC], 2025). These standards are critical for businesses seeking international growth, regulatory compliance, and financial credibility.
What are the latest updates on accounting standards in Peru?
According to TPC Group (2025), on September 19, 2024, the CNC approved IFRS 18, bringing significant changes to financial reporting, taxation, and regulatory oversight. This update aims to improve transparency and comparability, with enforcement starting January 1, 2027 (TPC Group, 2025).
What are the key changes in IFRS 18?
IFRS 18 introduces important modifications to financial reporting that aim to enhance transparency and comparability. These changes affect how companies classify, present, and disclose financial information, ensuring greater consistency in reporting across different industries.
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Revised Profit or Loss Statement: IFRS 18 restructures the income statement, categorizing financial items into operating, investing, financing, income taxes, and discontinued operations (PwC, 2025).
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Mandatory Subtotals: Companies must now present ‘Operating profit or loss’ and ‘Profit or loss before financing and income taxes’ to enhance clarity and standardization (PwC, 2025).
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Management-Defined Performance Measures (MPMs): Organizations must disclose MPMs, explaining how they are calculated and their importance (EY Global, 2025).
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Improved Data Presentation: Financial statements must balance aggregation and disaggregation, ensuring that data is presented with appropriate levels of detail for easier interpretation (Protiviti, 2025).
Which private companies must follow IFRS in Peru?
Private companies are required to adopt IFRS, as endorsed by the CNC (IFAC, 2025). For businesses in competitive industries, IFRS compliance enhances corporate governance, investor confidence, and access to international capital.
Which domestic companies with publicly traded securities must follow IFRS in Peru?
Companies with publicly traded securities must follow IFRS, except for banks, insurance companies, and pension funds, which adhere to sector-specific financial regulations (IFAC, 2025). Compliance with IFRS fosters financial transparency and ensures alignment with global investment standards.
Which public companies must follow IFRS in Peru?
Public companies may be required to follow IFRS, depending on their industry regulations and legal obligations (IFAC, 2025). Government-related entities often adhere to separate public sector accounting standards for financial reporting.
What is the role of the Superintendence of Securities Markets (SMV) in Peru?
The Superintendence of Securities Markets (SMV) regulates non-financial listed companies in Peru. It ensures compliance with financial reporting laws, stock market regulations, and corporate transparency requirements (IFAC, 2025). The SMV plays a vital role in strengthening Peru’s capital markets and ensuring investor confidence.
What is the role of the Superintendence of Banking, Insurance, and Pensions (SBS) in Peru?
The Superintendence of Banking, Insurance, and Pensions (SBS) oversees banks, insurance companies, and pension funds, enforcing sector-specific financial and risk management regulations (IFAC, 2025). As financial markets become more complex, adherence to SBS regulatory frameworks is crucial for risk management and investor protection.
Where can I find the latest information on Peru’s accounting standards?
For the most updated information, refer to these key regulatory sources:
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International Federation of Accountants (IFAC, 2025) – Insights on Peru’s accounting framework and global financial compliance.
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TPC Group (2025) – Covers IFRS 18 and its implications for corporate governance and taxation.
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PwC Viewpoint (2025) – Explores IFRS 18’s impact on financial reporting, taxation, and corporate finance.
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EY Global (2025) – Discusses IFRS 18’s role in financial performance reporting for multinational corporations.
These sources offer valuable updates on financial reporting standards, compliance, and corporate regulations.
Which Are the Most Reputable Corporate Accounting Firms in Peru?
Based on client feedback, industry directories, and peer recommendations, the most trusted corporate accounting providers in Peru include Auxadi Peru, TMF Group, Morales & Co., BIZLATIN HUB, and Flatfee Corp. These five firms are known for their international reach, specialization in compliance and outsourcing, and strong reputations among both local and foreign companies operating in the country
What makes a corporate accounting firm truly stand out in Peru's competitive business landscape?
While many firms offer similar services on paper, only a few consistently earn top marks for reliability, regulatory expertise, and strategic impact. Based on verified insights, here are the top 5 most trusted corporate accounting providers in Peru, along with the reasons why they stand out:
Why is Auxadi Peru recommended?
Auxadi Peru is widely recommended for its international experience and its ability to support global corporations and investment fund managers. Its services are particularly valuable for foreign companies looking to operate compliantly in Peru, offering accounting, tax, and payroll support through cloud-based solutions.
Why is TMF Group recommended?
TMF Group is globally recognized for its comprehensive back-office services. In Peru, it is especially valued for its expertise in corporate secretarial services, payroll processing, accounting, and compliance management, helping multinational companies navigate complex local regulations.
Why is Morales & Co. recommended?
Morales & Co. has built a strong reputation in Peru for its specialization in tax advisory, business consulting, and outsourcing of accounting and payroll services. It is favored by companies that need local insight and customized financial strategies.
Why is BIZLATIN HUB recommended?
BIZLATIN HUB is a trusted name across Latin America. In Peru, it supports foreign investors with multilingual services in accounting, tax compliance, and market entry. Its affiliation with a larger regional network makes it ideal for companies expanding across the region.
Why is Flatfee Corp recommended?
Flatfee Corp is recommended for its affordable and scalable accounting services tailored to SMEs and startups. It provides bookkeeping, financial statement preparation, and tax compliance with an emphasis on automation and real-time reporting for growing businesses.
Frequently Asked Questions (FAQs) about accounting in Peru
Accounting standards in Peru can be complex, especially with the ongoing updates to IFRS. Below, we address some of the most common concerns businesses have regarding compliance, applicability, and the impact of these regulations.
How does IFRS benefit businesses in Peru?
IFRS ensures financial transparency, global comparability, and investor confidence, making it easier for businesses to attract international funding and comply with regulatory expectations.
What is the difference between IFRS and GAAP in Peru?
IFRS is principles-based, focusing on transparent financial reporting, while Generally Accepted Accounting Principles (GAAP), used in other countries, follows detailed and rule-based frameworks.
Are SMEs in Peru required to follow IFRS?
Small and medium-sized enterprises (SMEs) may follow IFRS for SMEs, a simplified version of full IFRS, reducing reporting complexity while maintaining financial clarity.
How do IFRS standards impact tax reporting in Peru?
IFRS is used for financial reporting, but tax calculations in Peru follow local tax laws set by SUNAT. Companies need to reconcile IFRS-based financial statements with tax reporting requirements.
What happens if a company in Peru does not comply with IFRS?
Non-compliance can lead to financial penalties, reputational damage, and difficulties in obtaining financing. Companies may also face regulatory scrutiny from SMV or SBS.
You might be interested: What is the best corporate accounting Peru service?
What conclusions can we draw about accounting standards in Peru?
Accounting standards are more than regulatory obligations; they are strategic tools that help businesses maintain financial stability, investor trust, and global competitiveness.
In Peru, IFRS adoption has strengthened financial reporting accuracy, corporate governance, and business expansion. As IFRS 18 comes into effect, companies should take proactive steps to understand its requirements and implement necessary adjustments.
For businesses preparing for these changes, a strong financial strategy and compliance plan will be essential. Partnering with financial professionals and staying updated on regulatory developments ensures a smooth transition to evolving accounting standards.
If your company needs guidance on IFRS implementation, financial compliance, or strategic financial planning, consult experienced financial advisors and industry specialists to navigate these regulatory changes effectively.
You can contact me (Luis Fuentes) and Estudio Fuentes if you want to speak with an expert on this topic.
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