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Venezuela
Extent of IFRS applicationStatusAdditional Information
IFRS Accounting Standards are required for domestic public companies Companies whose securities trade in a public market are required to use the 2008 version of IFRS Standards with a modification related to general-price-level adjustments.
IFRS Accounting Standards are permitted but not required for domestic public companies
IFRS Accounting Standards are required or permitted for listings by foreign companies Required.
The IFRS for SMEs Accounting Standard is required or permitted All SMEs are required to use the IFRS for SMEs Standard, other than SMEs in the oil, energy, and mining industries, which are required to use full IFRS Standards as adopted in Venezuela.
The IFRS for SMEs Accounting Standard is under consideration

Profile last updated: 16 June 2016

Venezuela

RELEVANT JURISDICTIONAL AUTHORITY

Organisation
Federación de Colegios de Contadores Públicos de Venezuela (FCCPV) [Federation of Public Accounting Societies of Venezuela)
Role of the organisation
The FCCPV is the official standard setting body in Venezuela as designated under the Venezuelan accountancy law.
Website
www.fccpv.org
Email contact
glenifdirector@fccpv.org

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.
Has the jurisdiction made a public commitment towards IFRS Accounting Standards as that single set of high quality global accounting standards?
Yes.
What is the jurisdiction’s status of adoption?
Venezuela has adopted the 2008 version of IFRS Standards with modifications.
Additional comments provided on the adoption status?

Adoption of IFRS Standards was approved by the FCCPV. There is a formal public statement on the FCCPV’s website.

Venezuela modified the 2008 version of IFRS Standards to require price-level adjusted financial statements when the rate of inflation is 10% or more, even if the hyperinflation test of 100% over three years in IAS 29 Financial Reporting in Hyperinflationary Economies is not met.

If the jurisdiction has NOT made a public statement supporting the move towards a single set of accounting standards and/or towards IFRS Accounting Standards as that set of standards, explain the jurisdiction's general position towards the adoption of IFRS Accounting 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 Accounting Standards in their consolidated financial statements?
Companies whose securities trade in a public market are required to use the 2008 version of IFRS Standards as modified by Venezuela. More information is available in the Commitment to Global Financial Reporting Standards section of this profile.
If YES, are IFRS Accounting Standards REQUIRED or PERMITTED?
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 Accounting 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 Accounting Standards required or permitted in separate company financial statements of companies whose securities trade in a public market?
Required.
For instance, are IFRS Accounting Standards required or permitted for companies whose securities do not trade in a public market?

As noted above, Venezuela has adopted the 2008 version of IFRS Standards as modified. Those standards are required not only for all companies whose securities trade in a public market but also for:

  • banks and other financial institutions; and
  • companies in the oil, energy, and mining industries.

Small companies are required to use the IFRS for SMEs Standard.

If the jurisdiction currently does NOT require or permit the use of IFRS Accounting Standards for domestic companies whose securities trade in a public market, are there any plans to permit or require IFRS Accounting 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 Accounting Standards in their consolidated financial statements?
Yes.
If YES, are IFRS Accounting Standards REQUIRED or PERMITTED in such cases?
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 Accounting Standards are required or permitted for domestic companies?
IFRS Standards as issued through 2008, with some modifications. More information is available in the Commitment to Global Financial Reporting Standards section of this profile.
The auditor’s report and/or the basis of presentation footnote states that financial statements have been prepared in conformity with:
IFRS Standards.
Does the auditor's report and/or the basis of preparation footnote allow for ‘dual reporting’ (conformity with both IFRS Accounting Standards and the jurisdiction’s GAAP)?
No.
Are IFRS Accounting Standards incorporated into law or regulations?
Adoption of IFRS Standards was approved by the FCCPV, which is the recognised standard-setter under Venezuela’s accountancy law.
If yes, how does that process work?
Not applicable.
If no, how do IFRS Accounting 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 Accounting Standards (including Interpretations) in place?
No.
If yes, what is the process?
Not applicable.
If no, how do new or amended IFRS Accounting Standards become a requirement in the jurisdiction?
New and amended IFRS Standards since 2008 have not been adopted.
Has the jurisdiction eliminated any accounting policy options permitted by IFRS Accounting Standards and/or made any modifications to any IFRS Accounting Standards?
Yes.
If yes, what are the changes?
Venezuela modified the 2008 version of IFRS Standards to require price-level adjusted financial statements when the rate of inflation is 10% or more, even if the hyperinflation test of 100% over three years in IAS 29 Financial Reporting in Hyperinflationary Economies is not met.
Other comments regarding the use of IFRS Accounting Standards in the jurisdiction?
None.

TRANSLATION OF IFRS ACCOUNTING STANDARDS

Are IFRS Accounting 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 Accounting Standards?
The translation follows the official IFRS Foundation translation process.

APPLICATION OF THE IFRS FOR SMEs ACCOUNTING STANDARD

Has the jurisdiction adopted the IFRS for SMEs Accounting Standard for at least some SMEs?
Yes.
If no, is the adoption of the IFRS for SMEs Accounting Standard under consideration?
Not applicable.
Did the jurisdiction make any modifications to the IFRS for SMEs Accounting Standard?
No.
If the jurisdiction has made any modifications, what are those modifications?
Not applicable.
Which SMEs use the IFRS for SMEs Accounting Standard in the jurisdiction, and are they required or permitted to do so?
All SMEs are required to use the IFRS for SMEs Standard, other than SMEs in the oil, energy, and mining industries, which are required to use full IFRS Standards as adopted in Venezuela.
For those SMEs that are not required to use the IFRS for SMEs Accounting Standard, what other accounting framework do they use?
Not applicable.
Other comments regarding use of the IFRS for SMEs Accounting Standard?
None.