Comparison in accountacy systems: argentina and france

Argentina

- France
By: Rebeca Pedreño & Ornela Lauria
Estimated time: 15 min

Comparison of Accountancy Systems

Agenda
1. Background 2. Accounting Profession 3. Auditing & Accounting Institution 4. Standards Setting Process 5. Accounting System Characteristics 6. Harmonization Process 7. Comparison 8. Indexes 9. Inflation 10. Conclusions 11. References

1. Background
FRANCE
•Before 1947  no accounting standards
1947-1983  (1947) first PGC (general accounting plan) not compulsory ‘til 1965  (1967) Exchange Operations Commission (COB)  (1982) new PGC adapted to the Fourth Directive compulsory application from 1984

ARGENTINA
• For more than 20 years provincial councils were meeting twice por year
• In 1959  national idea • Before 1969  no accounting associationwith the right of issuing standards • FACPCE fundated in 1973 (integrating 24 councils) • 2001  CEPCABA separated from FACPCE • 2007  rejoined FACPCE

From the Law of 1983  the PGC no longer plays a fundamental role  The Order of Accountants (OECC)

2. Accounting Profession
FRANCE
• 1927  exam to act as an accounting professional
Existence of two separate professional bodies: Theordre des Experts Comptables et des Comptables Agrées (OECCA) The Campagnie Nationale des commissaires aus Comptes (CNCC) • • Excellent source of information ‘Club Comptable’ website  to enable accountants and business people to exchange information.

ARGENTINA
• PUBLIC ACCOUNTANTS (CONTADORES PÚBLICOS) • University graduation  5years (high education) • Professionals  associations (1891) •Councils entitle the professionals to have the right of signing FS  requires matriculation on the council (free entrancy) • Councils may also impose disciplinary sanctions

3. Auditing & Accouting Institutions
FRANCE
• Conseil national de la comptabilité (CNC)  the Autorité des Normes Comptables (ANC) (government decree No. 2010-56 dated 15 January 2010) Comité de la Reglementation Comptable(CRC) Commission des operations de Bourse (COB) Ordre des Experts Comptables et des Comptables Agrées (OECCA) Campagnie Nationale des commissaires aus Comptes (CNCC)

ARGENTINA
• FACPCE: “Federeación Argentina de consejos profesionales de ciencias económicas” 1995 (IFAC memeber) • CENCyA: “Comisión especial de normas contables y auditorías” • CPCECABA:”Consejo profesional de ciencias económicas dela cuidad autonómica de Bs As” • BCRA “Banco central de la Rca. Argentina”(banks & financial intitutions  consistent with FACPCE & US GAAP
• CILEA: “comité de integración latino europa-america” 1996 (Arg., Brazil, Mex, Fr., Es., Portugal)

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4. Standards Setting Process
FRANCE
1. Where are accounting standards needed? 2. Study Groups 3. Consider the preliminary draft 4.Council members of the ICAI and some specified bodies  their comments. 5. On the basis of comments received  finalise the Exposure Draft 6. Issued for comments by the members of Institute and the public 7. Draft finalised submitted to the Council

ARGENTINA
1. CENCyA suggests accounting and auditing standards 2. Professional councils and other interested parts comments on the draft 3. Drafts areapproved through the issuance of ar Tecnical Resolution (TR) from FACPCE

5. Accounting System Characteristics
FRANCE • Legal system  Code law • Model  Continental european model
• Taxation  dependent

ARGENTINA • Legal system  Code law • Model  Latin american model
• Taxation  dependent

6. Harmonization Process
France
• 1998  Accounting Regulation Committee (Comité de laRéglementation Comptable, or CRC) • French companies must prepare and publish primary financial statements according to French GAAP • 1999  CRC approved a new methodology to bring the French GAAP closer to IAS New standards do not fully comply with IAS. • EC Regulation 1606/2002  mandatory for all publically listed companies on the EU Securities Market to apply IFRS in their consolidated financial...