|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||Required. IFRS Standards are required for companies listed on the Bolsa de Valores de El Salvador (stock exchange). The bank, insurance, and pension regulators have not adopted IFRS, but they require that the financial statements of their regulated entities state the main differences between ‘regulatory GAAP’ and IFRS Standards.|
|IFRS Standards are permitted but not required for domestic public companies|
|IFRS Standards are required or permitted for listings by foreign companies||Required.|
|The IFRS for SMEs Standard is required or permitted||Required.|
|The IFRS for SMEs Standard is under consideration|
Consejo de Vigilancia de la Profesión de Contaduría Pública y Auditoría (CVPCPA).
Superintendencia del Sistema Financiero (SSF) [Superintendence of the Financial System].
Role of the organisation
The CVPCPA is the professional accounting association in El Salvador. The CVPCPA is recognised as the national accounting standard-setter under the Code of Commerce. The CVPCPA adopts accounting standards for companies in El Salvador other than financial institutions.
The SSF is the regulator of banks and insurance companies. SSF establishes accounting standards for them.
Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?
Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?
What is the jurisdiction's status of adoption?
Additional comments provided on the adoption status?
In 2011, the CVPCPA issued an “acuerdo” (decree) requiring the adoption of full IFRS Standards for companies listed on the Bolsa de Valores de El Salvador (stock exchange) and the IFRS for SMEs Standard for all other companies. The decree does not apply to banks, insurance companies, or pension funds, which are subject to accounting regulations adopted by government regulators as follows:
- Banks and insurance: Superintendence of the Financial System (Superintendencia del Sistema Financiero or SSF); and
- Pension funds: Superintendence of Pensions (SP).
The bank, insurance, and pension regulators have not adopted IFRS, but they require that the financial statements of their regulated entities state the main differences between ‘regulatory GAAP’ and IFRS Standards.
- Cooperative Associations: For cooperative associations the Salvadoran Institute for Cooperatives has defined a set of accounting principles for its associates based on the IFRS for SMEs Standard. The set of standards is called Financial Information Standards for Cooperative Associations of El Salvador.