Uruguay has significantly strengthened its accounting and auditing environment in recent years and efforts are being made to converge to International Financial Reporting Standards (IFRS).
Uruguay was one of the first Latin American countries to move towards the adoption of international accounting standards.
A first attempt to align the Uruguayan accounting practice with international standards took place as early as 1991. In the same year, the Permanent Commission of Accounting
Standards (CPNCA) was established with the purpose of advising the government on its issuance. The CPNCA has a broad representation of issuers and users of financial information.
In October 2014 and December 2015 the latest decrees were approved that established, in general, the international financial reporting standards for SMEs as an accounting framework.
These decrees have also established some local exceptions to which IFRS for simplified SMEs may correspond, or at the other extreme, the application of IFRS in its entirety or a specific
accounting framework (financial entities regulated by the monetary authority).
The Business Companies Act, enacted in 1989, requires business entities to submit, within four months after each fiscal close, financial statements prepared in accordance with the appropriate regulatory framework.
Commercial, agricultural, service and trust entities not regulated by the Central Bank of Uruguay must register their financial statements with the Internal Audit of the Nation, accompanied by a registered public report.