Argentina - Accounting

Fund management survey: Argentina - Accounting

International funds and fund management survey

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1.1 Requirement to produce financial statements

Requirement to maintain the books and records in the local jurisdiction

All accounting records of an investment management company and every fund under management must be maintained and updated in the country. Quarterly and annual accounts must be prepared and all detailed reconciliations (investments, cash, units, etc.) must be performed in the country.

Production of financial statements by collective investment funds

Law No. 24083 regulating funds requires the production of quarterly statements of results and annual financial statements under Argentine Generally Accepted Accounting Principles (GAAP).

The National Securities Commission listing rules require that the financial statements of the management company be issued within 70 days of year-end, accompanied by the minutes of the managing board’s meeting that approves them, the statutory audit committee’s report and the external auditor’s report. Mutual fund financial statements must be issued within 42 days from the quarter-end date and within 70 days from the fund year-end date, including the statutory audit committee’s report and the external auditor’s report.

For investment management companies and unit trusts, the directors are responsible for the preparation of the financial statements and the president is required to sign the profit and loss account and balance sheet of the quarterly and annual statements.

Choice of period/year-end for collective investment funds

Law No. 24083 regulating funds states that they can choose their own year-end.

Requirement for comparatives

Comparatives are required for the financial statements.

Restrictions on the currency under which financial statements must be prepared

Financial statements must be prepared in the local currency (Argentine pesos).

Accounting publications specific to the funds industry (as issued by accounting bodies or the regulators)

There are no accounting publications specific to the funds industry issued by the accounting bodies in Argentina.

Use of short form accounts

There are no provisions in legislation for short form accounts.

Umbrella schemes

Umbrella funds and funds of funds are not permitted.

Classes of shares

Financial statements are required, which incorporate all classes of shares.

There is no requirement to produce financial statements for each class of share.

1.2 Requirement to audit financial statements

Annual financial statements of investment management companies and unit trusts require annual audits. Audited accounts must be completed within 70 days of the year-end. They must be audited by an accounting professional registered with the related Professional Council of Economic Sciences.

There is no requirement to audit interim financial statements. The quarterly financial statements of the unit trust require a limited review as per the regulations of the Professional Council of Economic Sciences. Review accounts must be completed within 42 days from quarter-end.

1.3 Publication of financial statements

The publication of financial statements must be made at the discretion of the management company- in the bulletin of a stock exchange or stock market or a newspaper of wide circulation where the mutual fund has its registered office.

1.4 Accounting standards

Argentine GAAP must be used. This is similar to International Accounting Standards.

1.5 Contents of financial statements

Requirements for inclusion in annual financial statements:

  Required by law Required by GAAP (Argentina) Complied with for Best Practice
A statement which includes all income less expenses plus realized and unrealized gains and losses No No Yes
A statement which only includes income less expenses Yes Yes No
Statements of net assets and liabilities No No Yes
Statement of changes in net assets No No Yes
Cash flow statement No Yes No
Statement of accounting policies Yes Yes Yes
3 year net asset value table No No Yes
5 year net asset value table No No Yes

1.6 Accounting treatments and disclosures

The following items must be included in the annual financial statements:

  Required by law Required by GAAP (Argentina) Complied with for Best Practice
Futures are shown on balance sheet using the grossed up notional amount No No No
Futures are shown on the balance sheet based on the margin outstanding No No Yes
Futures are shown on the balance sheet based on the margin outstanding and the margin paid to date No Yes No
Organization costs are written off immediately No No Yes
Organization costs are amortized over one year No No No
Organization costs are amortized over more than one year No Yes No
Issue costs are charged to the statement of operations No No Yes
Issue costs are netted off against creation proceeds No Yes Yes
Contingent deferred sales charges are recorded as income No No No
Contingent deferred sales charges are netted off against redemption proceeds No Yes Yes
Holdings in other collective investment funds are consolidated if the fund holds > 50% of the underlying collective investment fund's shares No Yes Yes

Methods used in financial statement presentation to measure listed investments are:

 

     
Cost No No No
Market value:      
bid No No No
mid No No No
offer No No Yes
close Yes Yes No
price at any time during the day No No Yes
The financial statements distinguish between income and capital Yes Yes Yes

1.7 Appendix

Reference Material

The following details the relevant laws and regulations for collective investment funds and fund management companies and provides web addresses (in certain instances) for where this material can be located.

 
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