BACKGROUND NOTE ON ACTION PLANS

BACKGROUND NOTE ON ACTION PLANS Action Plans are developed by IFAC members and associates to address policy matters identified through their responses to the IFAC Compliance Self-Assessment Questionnaires. They form part of a continuous process within the IFAC Member Body Compliance Program to support the ongoing development and improvement of the accountancy profession around the world. Action Plans are prepared by members and associates for their own use based on the national frameworks, priorities, processes and challenges specific to each jurisdiction. As such, they will vary in their objectives, content and level of detail, consistent with their differing national environments and stages of development, and will be subject to periodic review and update. Refer to responses to the Part 1 Assessment of the Regulatory and Standard-Setting Framework Questionnaire and Part 2 SMO Self-Assessment Questionnaire for background information on each member and associate their environment and existing processes. These responses may be viewed at: http://www.ifac.org/complianceassessment/published_surveys.php Use of Information Please refer to the Disclaimer published on the Compliance Program website. ACTION PLAN IFAC Member/Associate: Guatemalan Institute of Public Accountants and Auditors / Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) Collaborating Body: Colegio de Contadores Públicos y Auditores de Guatemala / Guatemalan Association of Certified Public Accountants and Auditors () Approved by Governing Body: Executive Board / Junta Directiva Approved: July Original Publish : 2010 Last Updated: August Next Update: August 2013 Status as of of Publication Page 1 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () GLOSSARY AP BD DOM IAES IAESB IASB IFAC IGCPA INACOP INGECOP IPSAS ISA JD PA SAT SIB SMO Action Plan Board of Directors Colegio de Contadores Públicos y Auditores de Guatemala (Collegium of Public Accountants and Auditors of Guatemala) Declaraciones de los Organismos Miembros International Accounting Education Standards International Accounting Education Standards Board International Accounting Standards Board International Federation of Accountants Instituto Guatemalteco de Contadores Públicos y Auditores (Guatemalan Institute of Public Accountants and Auditors) Instituto Nacional de Cooperativas (National Institute of Cooperatives) Inspección General de Cooperativas (General Inspection of Cooperatives) International Public Sector Accounting Standards International Standards on Auditing Junta Directiva Plan de Acción Superintendencia de Administración Tributaria (Superintendent of Taxation) Superintendencia de Bancos (Superintendent of Banks) Statements of Membership Obligation Page 2 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () Action Plan Subject: Action Plan Objective: SMO 1 Quality Assurance Develop a System of Quality Assurance # Start Actions Completion Background: IGCPA was organized over 43 years ago for the basic purpose of promoting development and in defense of the CPA profession in Guatemala. At that time, the prevailing accounting basis were the generally accepted accounting principles issued by the U.S. FASB, also known as the USGAAP, which were adapted by IGCPA to the Guatemalan reality by way of a specific commission. Likewise, in exercising the audit profession, CPAs have used the American SAS as guidelines in their profession along with those audit standards provided by the Mexican CPA institute (Instituto Mexicano de Contadores Públicos). Accordingly, firms have implemented quality controls in their engagements by way of their own supervisors, especially those firms with international support. Therefore, quality control has been internally implemented in their organizations. However, it should be noted that on 18, 2007, the, a legal entity organized on June 1, 2005 and responsible for governing the profession in conformity with the Law of Mandatory Professional Enrollment (Decree 72-2001 of the Congress of Guatemala), adopted in their profession the International Standards on Auditing (ISA) issued by the International Accounting and Auditing Standards Board (IAASB) as the governing auditing standards in Guatemala. Also, on January 22, 2008, the IGCPA adopted the ISAs as their governing auditing standards. Such decisions were published in Diario de Centro America (the official Gazette) on 20 and February 5, 2007 respectively. Nevertheless, although no integral quality review system does exist in Guatemala to ensure the quality of audits of financial statements and no entity has been created to oversee and ensure quality control, a Law of Mandatory Professional Enrollment does exist, which provides requirements or rules for the organization and structure of each professional association and requires that a Tribunal of Honor be created in each of such associations. This Tribunal is responsible for investigating and penalizing the professional performance of firms regarding lack of know-how and negligence by way of a complaint method, which does not ensure quality as a result that information users are not accustomed to using this method. It should be pointed out that the largest audit firms in Guatemala are represented by International audit firms (approximately 9 or 10), and cover approximately 80% of the audit of financial statements market. This information is a valuable contribution to quality assurance. Additionally, a significant number of these firms (5 or 6) became part of an advisory group to support the requirements of the. Based on the above, actions disclosed in the foregoing, seek to reach in a long term (8 years) the implementation of a national quality control review program for the audit of financial statements in accordance with SMO-1 guidelines, especially with regards to ISQC-1 and ISA 220. Promote and encourage agreement amongts profession and regulators to establish a Quality Assurance Reveiw System. 1. October Create awareness among CPAs in relation to a Quality Control System over audits of financial statements through a review program, previously promoting a training plan with respect to the application of ISA 220 and ISQC-1, which would include theoretical and practical courses on guidelines, design and application as well as workshops and conferences. 2015 BDs and audit firms IGCPA administrative and operating Page 3 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () # Start Actions Completion 2. October Coordinate with regulatory entities (including Superintendent of Banks - SIB) enrollment requirements for external auditors to 2014 ensure a quality control system in the audit of financial statements of entities within the financial system, by preparing a proposal to amend the Regulations of the Enrollment of External Auditors disclosed in Resolution JM-264-2002 of the Monetary Board. BDs and audit firms IGCPA, and Audit firms administrative and operating Ammend Law and Bylaws of Regulatory Body - 3. October 4. January 2013 Conduct proceedings to amend the Law of Mandatory Professional Enrollment (Decree 72-2001) by preparing a proposal to strengthen the functions of the Tribunal. Create regulations, by way of a proposal, with respect to the Law of Mandatory Professional Enrollment (LMPE) for the purpose of regulating the actions of CPAs. 2015 2016 Project leading team IGCPA s, CCPA and Audit firms BDs Audit firms, IGCPA, and Congress of the Republic IGCPA, Audit firms 5. January 2013 Amend s by-laws, by proposing a rigorous separation of the Tribunal and the s BD, approved in a General Assembly Meeting. January 2014 Maintaining Ongoing Processes 6. On-going Ensure, by way of annual reviews, that the quality levels of the quality assurance system do comply with components of SMO-1, (especially in relation to ISQC 1 y ISA 220). On-going / annual - volunteers Review of Compliance Information 7. On-going Review responses to Parts I and II of the Compliance Program and make any necessary modifications to update both parts. Report to IFAC staff on updates to publish updated information. Appoint an individual responsible for review of information of parts I and II and make amendments. Notify IFAC on changes. - volunteers Page 4 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () Action Plan Subject: Action Plan Objective: SMO 2 International Education Standards (IES) Requirements for the preparation, education and distribution of International Education Standards (IESs) and other implementation guides of SMO 2 # Start Actions Completion Background: CPA training in Guatemala starts at the end of high school (Perito Contador) over a 3, followed by University level studies to obtain a bachelor s degree (during a 7 or 8 which includes a 2 year minimum practice, prior to graduation, depending on each University). Once professionals obtain their CPA degree, they are required to comply with the Law of Mandatory Professional Enrollment and be enrolled before the. This enrollment requires no previous professional exam and on-going professional training is optional. The purpose of this AP (Action Plan) is to align training and education of future CPAs to the IESs and IAESB guidelines. It should be noted that professional association in Guatemala is mandatory; consequently, the requires enrollment from professionales only and once all academic requirements have been met; i.e. once individiuals have graduated from their universities. Nonetheless, is currently implementing a project to conduct a technical review that will take into consideration admission tests and updating of professional information in order to classify all professionals taking into consideration that CPAs will conduct the audit of financial statements and other attestation engagements. These admission tests will assist the in the provision of permits and authorizations for individuals to conduct the professional activities required by their corresponding association. Enrollment shall be renewable every 3 years once updating tests have been taken. The cost of each enrollment type shall equal enrollment fees according to the type of license. This procedure shall be regulated. In relation to updating professional information, although voluntary, all CPAs update their information by way of courses, programs, post graduate courses, etc. provided by local universities, in addition to specific training courses under the responsibility of other international audit firms. Therefore, the Association intends to include this requirement within its regulations in order to maintain an adequate enrollment. Accordingly, the purpose of this AP is to align training and education of CPAs in accordance with IAESB standards and guidelines. Align training and education of future CPAs to the guidelines of the IESs of IAESB 1. Oct. Suggest (twice during October) to (private and public) learning institutions, by way of a forma document, with respect to the new CPA desired profile, especially in for the accounting, finance, business administration and information technology areas. October 2013 BDs, Audit firms IGCPA, and Audit firms 2. January 2013 Cooperate with national universities to compare current and typical curricula in order to create a model to align CPA student training to IESs. June 2013 BDs IGCPA CCPA Page 5 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () # Start Actions Completion 3. June Disclose by way of emails and bulletins documentation published by the International Accounting Education Standards Board: International guidelines for CPAs; and, International education material for CPAs. On-going IGCPA BD IGCPA 4. June Create awareness in current and experienced CPAs on the importance of ensuring compliance with documentation published by the IAESB. November 2013 Start discussions on the importance of professional exams prior to enrollment in associations 5. January 2013 Start a dialogue with schools (in Latin America and the Caribbean) to implement professional and certificate tests to gather information regarding lessons learned, experience and other ways to develop and implement a professional exam system. of Accounting and Auditing Standards and the Commission for ongoing education and training. IGCPA June 2013 6. June 2013 7. Nov Gather information from dialogues and hold a forum to gather regional experience for enrollment in Guatemalan Association of Certified Public Accountants and Auditors in order to increase the awareness on the importance of a professional exam system and the need for one in Guatemala. Regulate the admission process for enrollment in order to include a professional exam in order for the CCAPG to assess the individual s experience. July 2013 Nov. 2013 Maintaining Ongoing Processes 8. June Conduct seminars, sessions and conferences regarding matters and issues disclosed in documents published by the IAESB. On-going of International Accounting and Auditing Standards and the Commission for On-going education and training. learners Page 6 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () # Start Actions Completion 9. January Inform CPAs, learning institutions, government oversight bodies and Universities regarding discussion of exposure drafts of standardsprepared by the IAESB to promote improvement proposals and suggestions. On-going IGCPA BD IGCPA 10. On-going Conduct annual visits to ensure that enrollment, professional education, exam and practical experience and on-going requirements are in compliance with the requirements of SMO- 2. - volunteers Review of Compliance Information 11. On-going Review responses to Parts I and II of the Compliance Program and make any necessary modifications to update both parts. Report to IFAC staff on updates to publish updated information. Appoint an individual responsible for review of information of parts I and II and make amendments. Notify IFAC on changes. - volunteers Page 7 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () Action Plan Subject: SMO 3 International Standards on Auditing (ISAs), Related Practice Statements and Other Papers issued by the International Auditing and Assurance Standards Board (IAASB) Action Plan Objective: Develop quality control standards, audits, reviews and other types of assurance and related services. # Start Actions Completion Background: ISAs issued by the IAASB were adopted in Guatemala on 18, 2007 by the Guatemalan Association of CPAs but no technical entity has been appointed to ensure compliance thereof; accordingly, there is no certainty with respect to compliance. In addition, on January 22, 2008 the IGCPA adopted the above mentioned ISAs as the standards on auditing applicable in Guatemala. These guidelines were published in the National Gazette on 20, 2007 and February 5, 2008 respectively; however, no information on compliance is on hand. In addition, under Resolution JM-38-2007 the Monetary Board issued the Regulations for minimum requirements for the scope and contracting of external audit firms for the audit of financial service specialized entities, whenever these outfits are part of a financial group. The most relevant aspects of this regulation are: 1) entities referred to by these regulations shall contract external auditors registered before the corresponding registry maintained by the Superintendence of Banks; 2) engagements shall be performed in accordance with International Standards on Auditing taking into consideration that the presentation of financial statements should be in accordance of: regulations issued by the Monetary Board and the SIB and in the event unforeseen situations do arise in relation to these regulations, in accordance with International Accounting Standards. Likewise, the SIB, pursuant to agreement 007-2007 does regulate requirements that should be met during contracting of audit firms and the related scope of audits performed for companies subject to the regulations and oversight of the SIB taking into consideration that their content shall be in terms similar to those provided by Resolution JM-138-2007, except for section 2, which reads as follows: entities subject to SIB inspection and oversight shall engage ( ) external auditors included in the registry maintained by the oversight entity. In the case of off-shore entities, contracting of registered external auditors shall be accepted when credited by the certification provided by oversight entities in their countries of origin, which shall be credited by way of recording aging below one year. Also, pursuant to resolution JM-264-2002 issued by the Monetary Board, the SIB does maintain records of Audit Firms that can provide services to the country s financial market do exist. These records are reviewed every two years. These records are provided, prior classification of the firm and its partners, in conformity with standards for such purposes; however, regulations do not foresee assurance for engagement quality controls. As noted before, the has adopted the ISA issued by IAASB; IAS/IFRS and IFRS for SMES issued by the IASB along with the therefore, in relation to SMO-3 obligation shall entail performing reviews of compliance with the above standards and follow-up activities. 1. June Create processes to promote awareness among CPAs regarding significant changes or modifications to IAASB standards through emails, bulletins and web pages. 2. Oct During October training seminars on IAASB standards for CPAs shall be provided. This seminar will take place once a year during the On-going of International Page 8 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () # Start Actions Completion same date and shall focus on the following areas: ISA s fundamental parts Current issues and changes to ISA Application of ISAs in audits Challenges of small and medium audit firms 3. Nov. Maintaining Ongoing Processes 4. January Accounting and Auditing Standards and the Commission for On-going education and training. Conduct pilot training seminars to identify areas requiring changes. Dec. of International Accounting and Auditing Standards and the Commission for On-going education and training. Continue efforts to ensure that training and dissemination of ISA information reaches all CPAs countrywide. On-going IGCPA BD 5. January Monitor changes to IAASB standards and ensure that changes are being communicated to all CPAs and that training programs are upto-date to reflect such changes. On-going of International Accounting and Auditing Standards and the Commission for On-going education and training and BD 6. July Maintain forums and open dialogue with interested sectors in the country with respect to the new accounting framework in Guatemala and on the application of ISA, including representatives from: Companies (chambers), SIB, SAT, (Tax Office) Universities These actions are currently underway. Last year these activities were conducted along with the Tax Office. At present, these activities are being conducted with the SIB as a result of resolution from the On-going Page 9 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () # Start Actions Completion Banking Oversight entity. 7. Dec. Conduct efforts to identify opportunities to support the implementation of ISAs. Likewise, a review of existing activities should be included and the plan of action for future activities should be updated. Dec. Review of Compliance Information 8. Oct. Review responses to Parts I and II of the Compliance Program and make any necessary modifications to update both parts. Report to IFAC staff on updates to publish updated information. Appoint an individual responsible for review of information of parts I and II and make amendments. Notify IFAC on changes. Nov. SMO Compliance Volunteers Volunteers Page 10 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () Action Plan Subject: Action Plan Objective: SMO 4 IESBA Code of Ethics for Professional Accountants Conduct the corresponding proceedings to adopt a Code of Ethics for Professional Accountants issued by the IESBA. # Start Actions Completion Background: In Guatemala, the is the highest authority, which according to the enrollment law, decree 72-2001, has the authority to regulate the CPA profession, including the promotion and oversight of the ethical and efficient implementation of the profession, as well as to defend and protect the professional university activities and fight against empiric activities and usurpation of quality in accordance with section 3 parts c) and d) of the above mentioned law. Consequently, the and the IGCPA have implemented their own code of ethics. Both codes are similar and no significant variations do exist among them and follow a similar pattern or model of North American theories. However, the Association s target is to adopt the IESBA code of ethics in a fashion similar to that of the IGCPA. At present an ad hoc commission has been appointed by the Association to perform full adoption analyses. Completion is expected by November by both entities. The idea of adoption is to interrelate and strengthen the design of standards that will regulate the professional exercise, research and discipline. 1. Oct. Request from technical commissions their opinion to allow the and IGCPA to adopt a Code of Ethics for professional accountants. November 2. Oct. Include discussions on the application of IESBA s code of ethics in the current practice in training forums and seminars. Nov. IGCPA CCPG Maintaining Ongoing Processes 3. On-going Conduct best efforts to identify opportunities to support the implementation of the Code of Ethics issued by IESBA and include a review of current activities in order to update the plan of action for future activities. SMO Compliance Volunteers Review of Compliance Information 4. On-going Review responses to Parts I and II of the Compliance Program and make any necessary modifications to update both parts. Report to IFAC staff on updates to publish updated information. Appoint an individual responsible for review of information of parts I and II and make amendments. Notify IFAC on changes. SMO Compliance Volunteers Page 11 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () Action Plan Subject: Action Plan Objective: SMO 5 International Public Sector Accounting Standards (IPSAS) Develop best efforts to encourage public sector institutions to adopt IPSAS and help with the implementation as necessary. # Start Actions Completion Background: The government and its institutions, in response to an integrated accounting and budget implementation system, maintains several financial reporting standards that differ vastly from International Accounting Standards and International Financial Reporting Standards (IAS/IFRS) and other generally accepted accounting principles. However, on August 20, 2010, IGCPA was invited by the Ministry of Public Finance s Accounting Direction, in coordination with the U.S. Office of Technology Assessment (OTA) to a meeting held for the purpose of collaborating with the review of the Government s accounting system in order to implement a project for transition to IPSAS in general. In this respect, the related plans provide for transitional steps to implement IPSAS in the Government s accounting system while the the will perform follow-up and monitoring activities. For program purposes, the has estimated a 3 to complete this transition; i.e. transition would be complete by 2013 in order to come into force by 2014. 1. Sept. 2010 2. 3. 4. Prepare a transition plan to be coordinated with CPAs. (Monitoring of this activity to be performed by IGCPA & ) Personnel training. Assess any changes required to the information system. (Monitoring of this activity to be performed by IGCPA & ) Prepare a Manual on Policies and Procedures for approved IPSAS Policies. (Monitoring of this activity to be performed by IGCPA & ) the and the IGCPA collaborators the and the the and the 5. Test IPSAS policies and procedures in the new/updated information system. (Monitoring of this activity to be performed by IGCPA & ) the and the 6. Prepare opening and closing balance sheets in compliance with IPSAS. (Monitoring of this activity to be performed by IGCPA & ) the and the Page 12 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () # Start Actions Completion 7. Prepare a pro forma version of the statement of income. (Monitoring of this activity to be performed by IGCPA & ) 8. Prepare a pro forma version of the statement of assets/net assets. (Monitoring of this activity to be performed by IGCPA & ) the and the the and the 9. 10. Prepare a pro forma version of the statement of cash flows. (Monitoring of this activity to be performed by IGCPA & ) Prepare a pro forma version of the statement of budget execution / actual vs. actual amounts. (Monitoring of this activity to be performed by IGCPA & ) the and the the and the 11. Prepare a pro forma version of the statement of claims for controlled entities. (Monitoring of this activity to be performed by IGCPA & ) the and the 12. Prepare a pro forma version of the consolidated statements. (Monitoring of this activity to be performed by IGCPA & ) the and the Maintaining Ongoing Processes 13. On-going Strive to identify opportunities to support the adoption of IPSAS and consider the review of existing activities and update the AP for future activities. SMO Compliance Volunteers Review of Compliance Information 14. On-going Review responses to Parts I and II of the Compliance Program and make any necessary modifications to update both parts. Report to IFAC staff on updates to publish updated information. Appoint an individual responsible for review of information of parts I and II and make amendments. Notify IFAC on changes. SMO Compliance Volunteers Page 13 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () Action Plan Subject: Action Plan Objective: SMO 6 Investigation and Discipline Establish a framework for investigating and disciplining reprehensible conduct and breach of professional and ethical rules and regulations of professional public accountants in practice. # Start Actions Completion Background: In Guatemala, CPA degrees are provided by legally authorized Universities after an average 7 or 8 years of studies. However, according to the Law of Mandatory Professional Enrollment (Decree 72-2001 of the Congress of Guatemala applicable starting 2001) any degree provided by legally authorized universities enable individuals to practice their profession from an academic point of view; however, this does not enable them to legally practice their profession unless authorized by the corresponding Professional Association by way of compliance with enrollment and other guild obligations. At present, there are 7 universities in Guatemala providing CPA bachelor degrees; two of them offer a 2 year career applying andragogy-styled models and methods, mainly in the rural area of the Country.In addition, there are two professional associations for CPAs graduated from any of these legally authorized universities. The above Law of Mandatory Professional Enrollment provides for the investigation and discipline principle. This function has been assigned to the Tribunal of Honor of each professional association. Any violations described in this law, which are to be penalized by the corresponding tribunal, may result from: i) lack of ethics, ii) having affected the honor and prestige of each professional association, iii) clear inefficiency, incompetence, negligence, lack of know-how, inadequate practice or morally incorrect conduct in the practice of the profession. According to this law, investigation and discipline activities by the Tribunal of Honor are based on the complaint method, and after due processes have ran their course, the law does provide for a penalty and reforming system. 1. Jan. Perform an analysis and comparison of the investigation and discipline processes conducted by both professional associations which currently group CPAs and SMO-6 requirements. Pay attention to which actions result in an investigation and ensure that all actions have been included (especially in relation to failures to comply with CPA requirements). 2. January Gather information in both professional associations (ECPAyAE and ), regarding disciplinary rules maintained for CPAs. IGCPA BD y 3. January Obtain a listing from both associations regarding cases and professionals that were/are under investigation and were penalized and reformed. February Page 14 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () # Start Actions Completion 4. Feb. Prepare (both ) records of professionals that June have been investigated, penalized and reformed. 5. July 6. Nov. Prepare a report disclosing areas where non-compliance with SMO-6 have occurred, along with the recommended actions for compliance. Implement necessary actions to ensure compliance with the investigation and discipline system regarding SMO-6. September IGCPA BD y IGCPA y 7. Nov. Review current systems for appeal in order to ensure an independent, efficient and effective application. 8. Nov. Prepare regulations to investigate and discipline reproachable conduct and violations to professional standards and regulations by CPAs. These regulations shall be submitted to the approval of the s general assembly. 2013 9. Dec. 2013 Disseminate these rules among CPAs January 2014 IGCPA BD, y collaborators Maintaining Ongoing Processes 10. On-going Strive to ensure that investigation and discipline mechanisms adjust to SMO-6 requirements. Volunteers Review of Compliance Information 11. On-going Review responses to Parts I and II of the Compliance Program and make any necessary modifications to update both parts. Report to IFAC staff on updates to publish updated information. Appoint an individual responsible for review of information of parts I and II and make amendments. Notify IFAC on changes. Volunteers Page 15 of 16

Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) & the Colegio de Contadores Públicos y Auditores de Guatemala () Action Plan Subject: Action Plan Objective: SMO 7 International Financial Reporting Standards (IFRS) Disseminate and provide on-going training and education on International Financial Reporting Standards (IFRS) issued by IASB. # Start Actions Completion Background: Starting July 2002, the IGCPA adopted the generally accepted accounting principles in Guatemala as well as the International Accounting Standards (IAS) and their interpretations (SIC), issued by the IASC. However, IGCPA had been conducting conferences to its associates and public in general regarding IAS in order to create awareness on their adoption and application ever since 2001. In 2004, IGCPA updated its resolutions by adopting IFRS in Guatemala in order to be in line with changes and international convergence. In 2007, the adopted the most updated IFRS and agreed that the revised IFRS regulations would be applicable to financial reporting. Most recently, (June 2010) the, at the proposal of the IGCPA, adopted IFRS for Small and Medium Entities (SMEs) for those companies where full IFRS would not be applicable. In this respect, the IGCPA has provided diplomas, courses and workshops to disclose and disseminate the use and application of these standards. Starting, these efforts have been shared by both the and the IGCPA. 1. On-going Continue training professionals on these standards. On-going Standards 2. On-going Disclose and distribute new standards issued by the IASB (by way On-going of email, bulletins and IGCPA s and s websites). Standards 3. On-going Distribute (through email, bulletins and both IGCPA s and s On-going websites) IFRS draft documents issued by the IASB to Standards professionals to obtain their comments and proposals. Maintaining Ongoing Processes 4. On-going Provide on-going training on IFRS to CPAs and monitor changes in IFRS to adapt them to the current training programs. Review of Compliance Information 5. On-going Review responses to Parts I and II of the Compliance Program and make any necessary modifications to update both parts. Report to IFAC staff on updates to publish updated information. Appoint an individual responsible for review of information of parts I and II and make amendments. Notify IFAC on changes... IGCPA y and volunteers and volunteers Page 16 of 16