|Extent of IFRS application||Status||Additional Information|
|IFRS Accounting Standards are required for domestic public companies|
|IFRS Accounting Standards are permitted but not required for domestic public companies||Permitted. All domestic companies listed on the stock exchange are required to use either IFRS Standards or US GAAP.|
|IFRS Accounting Standards are required or permitted for listings by foreign companies||Permitted. All foreign companies listed on the stock exchange are required to use either IFRS Standards or US GAAP.|
|The IFRS for SMEs Accounting Standard is required or permitted||Permitted.|
|The IFRS for SMEs Accounting Standard is under consideration|
Profile last updated: 21 November 2016
Comisión de Normas de Contabilidad Financiera de Panamá (NOCOFIN)
Colegio de Contadores Públicos Autorizados de Panamá
The Accounting Technical Board, which reports to the Ministry of Commerce and Industry, is the body empowered to issue accounting standards in Panama. NOCOFIN is an advisory body to the Accounting Technical Board when it comes to accounting and auditing standards.
The Colegio is the professional association of licensed accountants.
In Article 16 of Law 6 of 2 February 2005, Panama added the following paragraph 3 to Article 699 of the Fiscal Code:
Paragraph 3: From 1 January 2006, the General Revenue Directorate will only accept income tax returns prepared according to accounting records that use the accrual-basis system based on IFRS. In exceptional circumstances, it will be possible to use the cash-basis system with previous permission from the General Revenue Directorate, according to the taxpayer’s economic activity.
Secondly, Article 74 of the same law (Law 6 of 2 February 2005) adds the following three paragraphs to Article 14 of Law 57 of 1978 (which is the Law of Certified Public Accountants):
Paragraph 1. IFRS that have already been issued and those that will be issued by the IASB (independent body established to enact accounting standards that can be applied worldwide) shall be adopted and applied in the Republic of Panama.
Paragraph 2. International Auditing Standards and Rules shall be adopted and applied in the Republic of Panama. These include standards and guides issued and to be issued by the International Auditing Practices Committee from the International Federation of Accountants, for financial statements audits.
Paragraph 3. The Financial Accounting Standards Commission (NOCOFIN) shall be authorised to recommend the necessary regulatory actions, applicable to International Accounting Standards and to International Auditing Guides or Rules issued by international organizations.
Furthermore, by means of Agreement 4 of 11 May 1999 of the Superintendence of Banking and by means of Resolution 8 of 22 May 2000 of the National Securities Commission, with the due endorsement of constitutional law, IFRS Standards and US GAAP shall be adopted as a basis for the preparation of financial statements for banking entities and companies registered with the National Securities Commission. More recently, by means of Law No. 12 of 3 April 2012, all insurance companies are required to use IFRS Standards starting in year 2014.
IAS Standards (now called IFRS Standards) were adopted and required for all domestic and foreign companies listed on the Stock Exchange in Panama starting from 2000, by means of a Resolution issued by the National Securities Commission (now known as the Superintendence of the Stock Market).
Also, IAS Standards (now called IFRS Standards) were adopted starting from 2000 by Agreement 4 issued by the Superintendence of Banking (now known now as Superintendence of Banks of Panama).
Yes. All companies listed on the stock exchange are required to use either IFRS Standards or US GAAP.
IFRS Standards, except in the case of individual financial statements of banks (for regulatory purposes), which refer to IFRS Standards as modified by banking prudential rules. Bank holding companies (also for regulatory purposes) must report their consolidated financial statements under full IFRS Standards starting in 2014. Banks registered with the Superintendence of the Stock Market must use either full IFRS Standards or US GAAP.