Nicaragua
Extent of IFRS applicationStatusAdditional Information
IFRS Standards are required for domestic public companies
IFRS Standards are permitted but not required for domestic public companies Permitted. Either IFRS Standards or US GAAP is required.
IFRS Standards are required or permitted for listings by foreign companies Permitted. Either IFRS Standards or US GAAP is required.
The IFRS for SMEs Standard is required or permitted Permitted.
The IFRS for SMEs Standard is under consideration

Nicaragua

RELEVANT JURISDICTIONAL AUTHORITY

Organisation

Superintendencia de Bancos y Otras Instituciones Financieras (SIBOIF) [Superintendency of Banks and Other Financial Institutions]

El Colegio de Contadores Públicos de Nicaragua (CCPN) [Institute of Certified Public Accountants of Nicaragua]

Role of the organisation

SIBOIF supervises listed companies, banks, insurance companies, and bonded warehouses. It establishes accounting requirements for those entities. In supervising banks, the SIBOIF requires loan applicants to submit financial statements prepared using either IFRS Standards or the IFRS for SMEs Standard.

The CCPN has issued Nicaraguan GAAP for more than 50 years. There is no accountancy law in Nicaragua, which means that Nicaraguan GAAP is a professional requirement rather than a statutory requirement. In 2011, the CCPN formally adopted both IFRS Standards and the IFRS for SMEs Standard as part of Nicaraguan GAAP.

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COMMITMENT TO GLOBAL FINANCIAL REPORTING STANDARDS

Has the jurisdiction made a public commitment in support of moving towards a single set of high quality global accounting standards?

Yes.

Nicaragua’s commitment to IFRS Standards is demonstrated by the adoption of IFRS Standards and the IFRS for SMEs Standard by both the CCPN and the SIBIOF.

Has the jurisdiction made a public commitment towards IFRS Standards as that single set of high quality global accounting standards?

Yes.

Nicaragua’s commitment to IFRS Standards is demonstrated by the adoption of IFRS Standards and the IFRS for SMEs Standard by both the CCPN and the SIBIOF.

What is the jurisdiction's status of adoption?
Nicaragua has adopted the IFRS Standards and the IFRS for SMEs Standard.
Additional comments provided on the adoption status?

There is no accounting law in Nicaragua. The CCPN has adopted both IFRS Standards and the IFRS for SMEs Standard as professional requirements in Nicaragua.

The SIBOIF requires all listed companies to use full IFRS Standards or US GAAP in financial statements for investors.

The Superintendency of Banks and Other Financial Institutions (SIBOIF) has developed accounting manuals for banks, insurance companies, and bonded warehouses. These are prudential accounting standards based partly on IFRS Standards, but there are some important differences from IFRS Standards.

The SIBOIF also requires all applicants for loans from financial institutions to prepare financial statements using either full IFRS Standards or the IFRS for SMEs Standard.

The Tax authority permits both full IFRS Standards and the IFRS for SMEs Standard as valid basis of accounting for tax purposes, with a reconciliation to Nicaraguan tax law where the tax law differs from IFRS Standard or the IFRS for SMEs Standard.

The World Bank’s March 2011 Report on the Observance of Standards and Codes (ROSC) titled Nicaragua: A Review of Accounting and Auditing Practices may be downloaded here: www.worldbank.org/ifa/rosc_aa_nicaragua _eng2011.pdf

If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Standards in the jurisdiction.
Not applicable.

EXTENT OF IFRS APPLICATION

For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:

Are all or some domestic companies whose securities trade in a public market either required or permitted to use IFRS Standards in their consolidated financial statements?
Yes.
If YES, are IFRS Standards REQUIRED or PERMITTED?
Either IFRS Standards or US GAAP is required.
Does that apply to ALL domestic companies whose securities trade in a public market, or only SOME? If some, which ones?
All.
Are IFRS Standards also required or permitted for more than the consolidated financial statements of companies whose securities trade in a public market?
Yes.
For instance, are IFRS Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
Permitted. US GAAP is also permitted.
For instance, are IFRS Standards required or permitted for companies whose securities do not trade in a public market?
Permitted.
If the jurisdiction currently does NOT require or permit the use of IFRS Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Standards for such companies in the future?
Not applicable.

For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:

Are all or some foreign companies whose securities trade in a public market either REQUIRED or PERMITTED to use IFRS Standards in their consolidated financial statements?
Yes.
If YES, are IFRS Standards REQUIRED or PERMITTED in such cases?
Either IFRS Standards or US GAAP is required.
Does that apply to ALL foreign companies whose securities trade in a public market, or only SOME? If some, which ones?
All.

IFRS ENDORSEMENT

Which IFRS Standards are required or permitted for domestic companies?
IFRS Standards as issued by the Board (either full IFRS Standards or the IFRS for SMEs Standard).
The auditor's report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:
IFRS Standards or the IFRS for SMEs Standard.
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Standards and the jurisdiction’s GAAP)?
If the auditor’s report is on a GAAP other than IFRS Standards or the IFRS for SMEs Standard or US GAAP, the financial statements should not be described as general purpose financial statements.
Are IFRS Standards incorporated into law or regulations?

Yes.

If yes, how does that process work?
IFRS Standards are incorporated into the regulations issued by the SIBOIF, which supervises listed companies, banks, insurance companies, and bonded warehouses. It is also referred in the income tax law and the resolution of the CCPN.
If no, how do IFRS Standards become a requirement in the jurisdiction?
Not applicable.
Does the jurisdiction have a formal process for the 'endorsement' or 'adoption' of new or amended IFRS Standards (including Interpretations) in place?
IFRS Standards are not individually endorsed.
If yes, what is the process?
Not applicable.
If no, how do new or amended IFRS Standards become a requirement in the jurisdiction?
Where law or regulation requires or permits IFRS Standards or the IFRS for SMEs Standard, all new or amended IFRS Standards are automatically included.
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Standards and/or made any modifications to any IFRS Standards?
No.
If yes, what are the changes?
Not applicable.
Other comments regarding the use of IFRS Standards in the jurisdiction?
None.

TRANSLATION OF IFRS STANDARDS

Are IFRS Standards translated into the local language?
The IFRS Foundation develops and publishes a Spanish translation of IFRS Standards.
If they are translated, what is the translation process? In particular, does this process ensure an ongoing translation of the latest updates to IFRS Standards?
The translation follows the official IFRS Foundation translation process

APPLICATION OF THE IFRS FOR SMEs STANDARD

Has the jurisdiction adopted the IFRS for SMEs Standard for at least some SMEs?
Yes.
If no, is the adoption of the IFRS for SMEs Standard under consideration?
Not applicable.
Did the jurisdiction make any modifications to the IFRS for SMEs Standard?
No.
If the jurisdiction has made any modifications, what are those modifications?
Not applicable.
Which SMEs use the IFRS for SMEs Standard in the jurisdiction, and are they required or permitted to do so?
All SMEs (as defined in the IFRS for SMEs Standard) are permitted to use the IFRS for SMEs Standard.
For those SMEs that are not required to use the IFRS for SMEs Standard, what other accounting framework do they use?
All SMEs that do not use the IFRS for SMEs Standard may use full IFRS Standards. Micro-sized SMEs are also permitted to use an accounting manual that is being developed for them by a government agency.
Other comments regarding use of the IFRS for SMEs Standard?
Statement by survey respondent: ‘There is a boom in Nicaragua about the use of the IFRS for SMEs Standard. Everybody (persons and entities) are looking for a lot of training on this topic.’

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