BACKGROUND NOTE ON ACTION PLANS(b) Translation of IFRS Standards issued by IASB, in its long and...

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: Colegio de Contadores de Chile (CCCH) Approved by Governing Body: CCCH Council Date Approved: August 2011

Date Published: August 2011

http://www.ifac.org/ComplianceAssessment/published_surveys.php

Action Plan Developed by Colegio de Contadores de Chile (CCCH)

Page 2 of 44 Status as of Date of Publication

GLOSSARY

AIC Asociación Interamericana de Contabilidad (Interamerican Accounting Association) AICPA American Institute of Certified Public Accountants

AR AICPA‟s Accounting and Review Standards ARSC AICPA‟s Accounting and Review Services Committee ASB AICPA‟s Auditing Standards Board AT AICPA‟s Attest Standards

AU AICPA‟s Auditing Standards BID (IDB) Banco Interamericano de Desarrollo (Inter-American Development Bank) BT Boletín Técnico (Chilean Accounting Standards) CCCH Colegio de Contadores de Chile (Chilean Accounting Council)

CCCH’s Council Consejo Nacional del Colegio de Contadores de Chile (Chilean Accounting Council‟s Governance Board) CDP Comisión de Desarrollo Profesional (CCCH‟s Professional Development Committee) CEEP Comisión de Ética y Ejercicio Profesional (CCCH‟s Ethics Committee) CES Comisión de Educación Superior (CCCH‟s Superior Education Committee)

CGRCH Contraloría General de la República de Chile (Government Accountability Office) CLETL Comisión de Legislación Económica, Tributaria y Laboral (CCCH‟s Labour, Tax and Economic Committee) CNA Comisión de Normas de Auditoría (CCCH‟s Auditing Standards Committee) CNAP Comisión Nacional de Acreditación de Chile (National Superior Education Assurance Council)

CNE Consejo Nacional de Educación de Chile (National Education Council) CPNC Comisión de Principios y Normas de Contabilidad (CCCH‟s Accounting Principles and Standards Committee) CRE Comisión de Reforma de Estatutos (CCCH‟s Statutary Constitution‟s Law Reform Committee) EPYM Entidades Pequeñas y Medianas (Small and Medium Entities)

FOMIN (MIF) Fondo Multilateral de Inversiones (Multilateral Investment Funds) GAAS USA‟s General Accepted Auditing Standards GCH Gobierno de Chile (Chilean Government) IAASB IFAC‟s International Auditing and Assurance Standards Board

IAESB IFAC‟s International Accounting Education Standards Board IASB International Accounting Standards Board Committee



GLOSSARY Continued IES IESBA‟s International Education Standards for Professional Accountants

IESBA International Ethics Standards Board for Accountants IFAC International Federation of Accountants IFRS IASB‟s International Financial Reporting Standards INDEP Instituto de Investigación y Desarrollo Profesional (CCCH‟s Research and Professional Development Institute,

Center of Continued Training Education) IPSAS IPSASB‟s International Public Sector Accounting Standards IPSASB IFAC‟s International Public Sector Accounting Standards Board ISA International Standards on Auditing

ISQC International Standard of Quality Control ME Ministerio de Educación de Chile (Government Education Ministry) MH Ministerio de Hacienda de Chile (Government Finance Ministry) NAGAs Normas de Auditoría Generalmente Aceptadas en Chile (Chilean General Accepted Auditing Standards)

REAE Registro de Empresas de Auditoría Externa (External Audit Companies Register) ROSC Report on the Observance of Standards and Codes SAS ASB‟s Statement of Auditing Standards SBIF Superintendencia de Bancos e Instituciones Financieras de Chile (Financial Institutions and Banks

Superintendent) SME Small and Medium Entities SMP Small and Medium Practices SP Superintendencia de Pensiones de Chile (Pensions Superintendent)

SQSC AICPA‟s Statement on Quality Control Standards - A Firm‟s System of Quality Control (Redrafted) SSAE ASB‟s Statement on Standards for Attestation Engagements SSARS Statement on Standards for Accounting and Review Services - Issued by the Accounting and Review Services SVS Superintendencia de Valores y Seguros de Chile (Superintendent of Corporations and Insurance Companies,

Chilean Government Securities Commission) WB World Bank



General Background: Colegio de Contadores de Chile, comes from the Registro Nacional de Contadores that gathered the profession in 1932. This group of professionals was established by Ley [Law] Nº 5.102. In 1958 a new institution was created through Ley Nº 13.011 which was named

Colegio de Contadores de Chile (CCCH), understanding it in all effects as the continuation of the earlier Registro Nacional de Contadores. In 1981 by Decreto Ley N° 3.621 the Asociación Gremial for Colegio de Contadores de Chile, was created which rules under Decreto Ley N° 2.757 of the year 1979 and from its posterior modifications. According to Decreto Ley N° 3.621 of 1981, the Asociación Gremial Colegio de Contadores de Chile is the legal successor of the previous Colegio de Contadores de Chile.

Colegio de Contadores de Chile is under Consejo Nacional del Colegio de Contadores de Chile integrated by 15 professionals chosen by each Consejo Regional and whose mission is to administrate the institution, promoting development and protection of activities concerning the accounting profession and caring for of its progress, prestige and improvement.

According to the statutes establishing the Colegio de Contadores de Chile only those colegiados activos (active members of the Colegio) are obliged to comply with professional standards issued by the institution and such individuals may only be professional accountants from a University or graduates of a Professional Institute recognized by the Chilean State (see article No. 5, 5a, 6, 7 and 8

of the Statute). As from the year 1981, in Chile it is no longer a legal obligation or a precondition for the exercise and practice of a profession, including that of accounting and public accounting, to be registered in the respective existing professional associations in the country. It is therefore important to emphasize that our institution currently represents only a portion of the grand total of all professional accountants in Chile.

According to the statutes establishing the Colegio de Contadores de Chile, said institution also has the power and duty to approve and adopt professional standards for use in Chile, which in practice is performed and exercised by the Consejo Nacional del Colegio de Contadores de Chile and was conferred by the aforementioned Ley 13,011 of 1958.

The obligations of improvement and technical specialization of the professional, and also the specialization of the professional members, established in the statutes of the constitution (see article 13.12 of the statutes), is run by the Instituto de Investigación y Desarrollo Profesional (INDEP). While originally the Institute was an internal function, typical of the business of the Colegio de

Contadores de Chile, later a legal change would affect the operational framework of the training in the country (in which companies with unique training were required); Currently, INDEP is an anonymous society whose main shareholder and controller is the Colegio de Contadores de Chile being autonomously administered and managed by the same.



The CCCH also has various Technical Advisory Committees of the Consejo Nacional. These are formed by a group of outstanding professionals who are committed to the mission and work of the institution. The realization of its functions is performed without a fee or contribution in return and is pro bono.

The Technical Advisory Committees are:

(a) Advising Technical Commissions:

(i) Comisión de Auditoría y (ii) Comisión de Principios y Normas de Contabilidad

Both are made up of members representing business, academia and firms of auditors. Also, a technical team was created in order to

collaborate with the BID-FOMIN project of Convergencia hacia las Normas Internacionales de Auditoría y Contabilidad which was approved in 2004 with the Inter-American Development Bank.

(b) Comisión de Educación Superior

(c) Comisión de Ética y Ejercicio Profesional (d) Comisión de Legislación Económica, Tributaria y Laboral (e) Comisión de Desarrollo Profesional

On the 17th May 2004 the Colegio de Contadores de Chile signed a letter of agreement with BID-FOMIN in reference to Cooperación Técnica No Reembolsable Nº ATN/MT – 8617- CH. Programa de Normas Internacionales de Información Financiera y Normas Internacionales de Auditoría of approximately US $ 1,500,000. A cooperation agreement known as Proyecto de Convergencia hacia las Normas Internacionales de Auditoría y Contabilidad ending 2009. The results of that convergence project were, among others, the

following:

(a) Strengthening of Colegio de Contadores de Chile undoubtedly considered as the leader of the convergence in Chile towards international standards,

(b) Translation of IFRS Standards issued by IASB, in its long and simplified versions (EPYM), (c) Translation of professional Standards for quality control, audit, attestation, revision and compilation, (d) Implementation of a technical translating team led by a Technical Director, which transcended the convergence project, and is

still involved in technical activities to date.



The translation of IFRS is authorized by IFRS Foundation to the Colegio de Contadores de Chile under a framework contract between the Colegio de Contadores de Chile and the IFRS Foundation among other obligations which include the following:

(a) enactment must be accompanied by a specific designation of origin, that is, “Normas de Chile” (Chilean Standards) and without

reference to its “international” nature or quality (b) its distribution is understood to be solely for Chile, noting that intellectual property rights of the original IFRS in English and

all translations belong exclusively to IFRS Foundation (c) advise any amendment and adaptation made, only if applicable, a situation that has not arisen and will not arise in Chile, given

that the adoption of IFRS is total and without reservations.

Colegio de Contadores de Chile coordinate and delegate to two committees, namely: (a) Comisión de Legislación Económica, Tributaria y Laboral y (b) Comisión de Desarrollo Profesional, which means the whole process of communication and dissemination of professional standards, at any stage in which they are found (paper, exposure draft or final standards).

The Comisión de Legislación Económica, Tributaria y Laboral has always been a permanent advisory committee of the Consejo

Nacional del Colegio de Contadores de Chile. The Consejo Nacional del Colegio de Contadores de Chile has granted the Comisión de Legislación Económica, Tributaria y Laboral specific responsibility, among others, to publish in a monthly newsletter (of national circulation) all information related to matters of interest and for professional development to happen in Chile and abroad.

The Comisión de Desarrollo Profesional has always been a permanent advisory committee of the Consejo Nacional del Colegio de

Contadores de Chile. The Consejo Nacional del Colegio de Contadores de Chile has awarded the Comisión de Desarrollo Profesional specific responsibility, among several, to monitor change initiatives as well as national and international regulatory developments relevant to professionals, coordinating their dissemination, training and timely implementation by professional members.

2011

El Colegio de Contadores de Chile will channel the need to inform

all members on all professional standards and all future changes to the rules suggested in ideas, papers and published by IFAC Exposure Draft, IFRS AICPA Foundation, using these effects to the monthly newsletter.

Permanent

role

Comisión de

Legislación Económica, Tributaria y Laboral

Comisión de Legislación

Económica, Tributaria y Laboral

2011

The Colegio de Contadores de Chile will channel the need to inform all members about the proposed international professional standards issued by IFAC, AICPA IFRS Foundation, using for this purpose its

Permanent role

Comisión de Desarrollo Profesional

Comisión de Desarrollo Profesional



own website with direct links to each web page of international organizations.

2011

The Colegio de Contadores de Chile will channel the need to comment on the proposed new international professional standards

issued by IFAC, AICPA Foundation and IFRS, these effects using the resources of the Technical Committees Audit and Accounting Principles.

Permanent role

Comisión de Auditoría

Comisión de Principios de Contabilidad


Comisión de Principios de Contabilidad



Action Plan Subject: SMO 1 – Quality Assurance

Action Plan Objective: Improve and Further Develop CCCH‟s Quality Assurance Program in Line with SMO 1

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Responsibility Resource

Overview:

Colegio de Contadores de Chile does not have control over external audit firms currently listed on the Registro de Empresas de Auditoría Externa (REAE) established by the relevant regulatory agencies to identify those entities authorized to audit liste d companies and / or supervised in Chile. Inclusion in these registries requires compliance with international standards and acceptance of the ongoing monitoring of relevant regulatory bodies. Consequently, quality control monitoring and compliance requirements rest in the

hands of regulators, who in the opinion of the Colegio de Contadores de Chile have adopted all the obligations contained in SMO 1.

On the other hand, complying with its role as the issuer of professional standards, Colegio de Contadores de Chile has translated and enacted in a first phase, during 2009, Normas de Control de Calidad (NCC) issued as exposure drafts at that date by ASB of AICPA. As a second phase, the scheduled chronogram will be completed by the end of 2011 and all standards will have been translated and

enacted contained in the Clarity Project of ASB of AICPA, which generally does not differ significantly from international standards issued by IAASB in IFAC.

Background:

Ley de Gobiernos Corporativos de Chile Nº 20.382 issued and enacted on October 20, 2009, amended the previous Ley de Sociedades Anónimas Nº 18.046 y Ley del Mercado de Valores Nº 18.045, establishing substantive changes at the level of corporate governance of

listed entities and / or inspected in Chile and also changes regarding the of performance of external auditors. Since then it has been established that the external audit function for listed and / or controlled entities should be performed only by companies engaged in external audits, thus not allowing the listed and / or audited companies to be audited by professional individuals.

The Superintendencia de Valores y Seguros (SVS) in concordance with what is indicated in Ley de Gobiernos Corporativo established

at that time a new Registro de Empresas de Auditoría Externa (REAE), in which currently 50 external audit companies exist which have been authorized to perform audits to listed and / or inspected companies by SVS. Also, following the homologue of the SVS, the Superintendencia de Bancos e Instituciones Financieras (SBIF) established a new Registro de Empresas de Auditoría Externa exclusive to SBIF in which to date only 10 external auditing companies are registered, which are authorized to audit banks, financial

institutions and credit cooperatives.



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In relation to the levels of requirements established in the Registros de Empresas de Auditorías Externas, the following among others are mentioned:

(a) Before the registration of an external audit firm in the mentioned records of external audit firms of the SVS and / or SBIF,

compliance with high standards of academic quality of the professionals, financial solvency of the company, professional experience and the establishment of a complete design of procedures and quality control of work is required to ensure compliance with the strictest international standards for job performance.

(b) Also, external Audit firms are permanently subject to the issuing of periodic reports concerning sales levels, tariff amounts per hour, hours incurred on each client and the permanent supervision on behalf of each of the relevant regulating organisms.

In Chile the degree of concentration of the external Audit firms at a level of the listed and/or inspected companies named the Big 4,

tends to be a maximum in comparison to other markets. Independently, of the high level of concentration of the external audit firms, the Big 4 maintain a strict quality control policy imposed principally by the international firms who they represent in Chile . Recalling that in accordance with the established Estatutos of the Colegio de Contadores de Chile only those denominated as

colegiados acitvos are those who are obliged to comply with professional standards issued by la Entidad and that mentioned colegiados activos can only be individual accountants by profession (see items # 5, 5bis, 6, 7 and 8 of the Estatutos). CCCH – does not have control over the external audit firms who are ultimately performing the audits of listed and / or inspected companies in Chile.

Notwithstanding the preceding paragraph, the Colegio de Contadores de Chile firmly believes that given the current market structure and legal aspects of the framework currently in force in Chile, full ensurement of the objectives of the SMO 1 achieved by the regulating and inspector institutions of the financial and stock market in Chile.

Forming part of the denominated obligations as complementary or additional, which have been contemplated in general terms in various SMOs and in a particular way in SMO 1, the following will be the action plan for each one of them:

(a) Members should inform all associates of the Normas de Control de Calidad (ISQC) published by IAASB. (See paragraph Nº

10 and 18 of SMO 1)



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(b) Members are encouraged to inform their members to understand the objectives of quality control and implement and maintain quality control set forth in the quality control standards.(See paragraph No. 12 of SMO 1)

Concerning (a) and (b) and considering that transversally these diffusion obligations affect more than one SMO, Colegio de

Contadores de Chile - has considered it necessary to add an additional section at the beginning of this document, which has been denominated as Plan de Acción General (“General Action Plan”), for which it is expected to answer in an adequate and unique form to an obligation which is common to the majority of the SMOs.

Colegio de Contadores de Chile has the faculty and obligation to establish the professional standards used in Chile, a function which in practice is performed and executed by Consejo Nacional del Colegio de Contadores de Chile. The Comisión de Auditoría has always been the permanent advisory commission of the Consejo Nacional. The Consejo Nacional has granted the Comisión de Auditoría the specific responsibility, among others, to propose technical pronouncements and professional standards in themes such as the Normas

de Control de Calidad (NCC), for approval and posterior enactment on behalf of the Consejo Nacional del Colegio de Contadores de Chile in conformity with the current legislation and constituting it in a way that makes professional standards an obligation in the exercise of professional practice in Chile.

The Comisión de Auditoría previously, from 2004 to 2006, had agreed with Colegio de Contadores de Chile , with relevant socia l actors and with the actors of their proyecto de convergencia financed by BID-FOMIN denominated Convergencia hacia las Normas Internacionales, that the plan to achieve convergence with the international professional standards should consist basically of two stages, pillars and fundamenta l steps, understood as:

(a) Given that historically the professional standards in Chile have been prepared based on the professional standards issued by

AICPA, as a first priority step, it was determined to completely finalize said process. This first fundamental step and pre requesite to initiate the second phase, was finalized by the end of year 2009 (see detail in Table Nº 1, following) and

(b) In a second phase towards convergence with the international professional standards and coinciding in a convenient way with

the convergence project towards the international professional standards initiated by ASB of AICPA, project denominated by AICPA as “Clarity Project”. It was agreed upon to continue preparing local pronouncements based on each of the normas de

control de calidad which, now clarified, could be issued partly by ASB of AICPA. (see detail in #1).



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SMO 1 - Table Nº 1:

Professional Standards

approved and

enacted

Date of approval and

enactment

Responsible Sources Observation

Norma de Control

de Calidad (NCC)

(Sección NCC)

August 18,

2009

Comisión de

Auditoría

Proyecto BID-

FOMIN

Consejo Nacional

del Colegio de

Contadores de

Chile

Comisión de

Auditoría

Proyecto BID-

FOMIN

Consejo Nacional

del Colegio de

Contadores de

Chile

Local professional standards based on SQCS “Exposure

Draft” issued by ASB of AICPA. Later in 2010 this

document would be issued as SQCS 8, A Firm's System of

Quality Control (Redrafted). Document that also is prepared

based on ISQC issued IAASB of IFAC.

Establishment and maintenance of a permanent process that assures adoption and enactment of the current and future quality control standards of IAASB of IFAC

1. 2010

Convergence towards professional standards (ISQC) issued by IFAC, is the main strategic objective for the

Colegio de Contadores de Chile. The defined methodology to reach this strategic objective is defined and found in terms of continued translation and enactment of the standards that ASB of AICPA continues issuing

regarding its own convergence process with the IFAC professional standards, project denominated as “Clarity Project”. The significant differences that could still result from the mentioned process will be known to all the

members and third parties that are interested in the matter, through the issuance of the relevant Circular de Auditoría.

2012 first semester (in

process)

Comisión de

Auditoría


Consejo Nacional del Colegio de

Contadores de Chile



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2. 2011

Development and maintenance of training programs for

professional quality control is a strategic priority of the Colegio de Contadores de Chile and includes professional development in the assurance of quality in the audit areas, attestation, revision and compilation.

Ongoing

function INDEP INDEP

Ongoing review and monitoring concerning compliance of the current SMOs and future IFAC, especially SMO Nº1 on behalf of

Colegio de Contadores de Chile

3. 2011

In the modified statutes considered for the Colegio de

Contadores de Chile it is possible to find those related to the definition of the ones responsible for permanently monitoring all the areas of compliance of the SMOs of IFAC. For these reasons, the Comisión de Reforma de

Estatutos was created on August 6, 2011.

2012 first semester

Comisión de

Reforma de Estatutos

Consejo

Nacional del Colegio de

Contadores de Chile

Comisión de Reforma de Estatutos

Consejo Nacional del Colegio de

Contadores de Chile

Review of CCCH’s Compliance Information

4. Ongoing

Perform Periodic Review of CCCH Response to SMO 1

Section of the IFAC compliance to The IFAC Compliance Self-Assessment Questionnaires And Update Sections Relevant To Relevant SMO. Once Updated Inform IFAC Compliance Staff About The Updates In Order For The

Compliance Staff To Republish Updated Information.

Ongoing



Action Plan Subject: SMO 2 – International Education Standards Action Plan Objective: Ensure that System of Education and Certification is in Line with IESs

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Overview:

Colegio de Contadores de Chile does not have any legal tuition or legal control of any kind over universities, professional institutes, technical formation centers or schools that grant under different modes of duration in years and quality, the respective career of accountant in Chile. For this reason Colegio de Contadores de Chile – makes its best effort to help and coordinate with universities, professional institutes, technical formation centers and schools in order to spread and implement the educational standards of IFAC

through a joint work with Comisión de Educación Superior of the Colegio de Contadores de Chile.

Background:

Obligation Nº 1. The affiliated organizations should inform their members of all IERS, IEPS and IEIP published by IAESB. (See paragraph 1 of SMO 2)

This material is disseminated through the website of the Colegio de Contadores de Chile. Also present in the Congresos Nacionales of the Colegio. On this matter, conferences have been held across the country under the responsibility of the Consejeros Nacionales. These conferences have also been carried out in universities of the country that offer the accounting career.

In June of this year a Seminario Regional Interamericano was given in the educational environment, to which the majority of universities in the country attended, as well as representatives of the Latin-American countries with the sponsoring of the Asociación Interamericana de Contabilidad (AIC), in which Mrs. Silvia Melijen from IFAC participated as a special guest and gave an exposee on

standards of formation in her organization. On the other hand, Instituto de Investigación y Desarrollo Profesional (INDEP) of Colegio de Contadores de Chile develops dynamic actions in the diffusion of IFAC Formation Standards through its web page.

Obligation Nº 2. The IAESB exposes the IES and IEPS for public comments. The members of organizations are encouraged to report to their members on all exposure drafts for discussion published by IAESB, and put forth comments on behalf of those members interested in education and in educational requirements for the development of accounting education. (See paragraph 2 of SMO 2)



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Colegio de Contadores de Chile has named a Comisión de Educación Superior that meets twice a year. It is formed by Directors of the most prestigious Public Accountant careers in the country. One of the recurring issues in the meetings is that of the standards of education of IFAC and how they influence the student‟s profile that graduate from that career.

The Comisión de Educación Superior recommends that the education institutions incorporate, in ways that do not alter the autonomy of the institutions, these matters in their curriculum for accountants or public accountants.

Obligation Nº 3. The member organizations should exercise their best effort: (See paragraph 3 of SMO 2)

(a) To incorporate essential elements of the content and education and development processes on which IES is based within the

education requirements and national development of the accounting profession, or in the case that responsibility for the national development corresponds to other third parties, to persuade those responsible to incorporate the essential elements of the IE S in

their requirements and (b) To help in the implementation of the IES or in the educational and national development requirements that incorporate the IES.

In relation to this obligation Colegio de Contadores de Chile makes its best effort, not only with the forming entities but with the

governmental organizations in charge of safe-guarding the quality of education like Consejo Nacional de Educación (CNE) and Comisión Nacional de Acreditación (CNAP), with the objective of permanently informing on changes promoted by the international entities of the profession such as, AIC, IFAC y IASB. In the same manner it maintains quick ways of exchanging information with Controlling Organizations, such as Superintendencia de Valores y Seguros (SVS), Superintendencia de Bancos and Instituciones

Financieras (SBIF), Superintendencia de Pensiones (SP), Ministerio de Economía and Ministerio de Hacienda de Chile. The previously mentioned applies if it has relation with education, training and improvement of the accountants in the country. This work has been publically recognized by the above mentioned institutions.

It is important to highlight that in 2009 Colegio de Contadores de Chile developed a program to train the trainers “Formación de Formadores” that brought together 160 university teachers of all regions in Chile at the main branch of the Colegio de Contadores de Chile in Santiago, who were trained in IFRS matters. These teachers repeated this experience in their respective Regiones with the objective of incorporating these important matters in their study programs. This allowed the students of senior years to get to know

these matters before graduating.



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Establishing and maintaining an ongoing process to ensure, adopt and enact the current and future education standards of IFAC

5. 2011

During the month of October, 2011 the Comisión de Educación Superior of Colegio de Contadores

de Chile will have a session with the following objectives:

(a) Analyze how IFAC education standards are

being applied in the different teaching institutions of the country.

(b) Analyze the result of the application of the curriculum by competencies that have been

adopted in some universities. (c) Analyze incorporating IFRS (NIIF) as a

subject in the Accounting career in the different teaching institutions.

(d) Analyze the educational processes of the Investigación y de Desarrollo Profesional (INDEP) of Colegio de Contadores de Chile.

(e) Towards the end of the year a Congreso Nacional of Colegio de Contadores de Chile, will be given and will be organized together with the “Universidad de Talca”.

The area of Education of said Congress will be to face the Chilean forming procees and the IFAC formation standards.

(f) Through INDEP, periodically the students

in the process of training or improvement will be informed about the process advancements in the formation process

Ongoing

Presidente de la Comisión de Educación Superior

Comisión de Educación Superior



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advocated by IFAC.

(g) Develop the culture of the “buenas prácticas” in the accounting education environment in our country.

(h) Disseminating this to the forming entities

as the members of the profession and the controlling organizations and regulators of a specially developed lexicon by the Comisión de Principios y Normas de

Contabilidad, with the objective of explaining idiomatic variations specific to Chilean Spanish.

Ongoing review and monitoring concerning compliance of the current SMOs and future IFAC, especially SMO Nº2 on behalf of Colegio de Contadores de Chile

6. 2011

In the modified statutes considered for the Colegio de Contadores de Chile it is possible to find those

related to the definition of the ones responsible for permanently monitoring all the areas of compliance of the SMOs of IFAC. For these effects the Comisión de Reforma de Estatutos was

created on August 6, 2011. (For present purposes the Consejo Nacional appoints those responsible)

2012 first semester


Consejo Nacional del Colegio de Contadores de

Chile


Consejo Nacional del Colegio de Contadores de Chile


7. Ongoing

Perform periodic review of CCCH„s responses to the IFAC compliance self-assessment

questionnaires and update sections relevant to relevant SMO. Once updated inform IFAC compliance staff about the updates in order for the compliance staff to republish updated information.

Ongoing



Action Plan Subject: SMO 3 – International Standards on Auditing (ISA) and IAASB Standards and Pronouncements

Action Plan Objective: Support Adoption and Implementation of IAASB Standards

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Overview: The Colegio de Contadores de Chile has translated and enacted in a first phase during 2009, all professional standards in course and

issued until this date for ASB and ARSC of AICPA. In a second phase, scheduled to finish by end of 2011, is the translat ion and enactment of all standards contained in the “Clarity Project” of ASB of AICPA, which in general terms do not differ significantly with the international standard issued by IAASB of IFAC.

Background:

The Colegio de Contadores de Chile, legal successor of the Colegio de Contadores, a public legal entity created by Ley No. 13,011 dated September 13, 1958, has the authority and obligation to establish professional standards used in Chile, a function which in

practice is performed and exercised by Consejo Nacional del Colegio de Contadores de Chile. The Comisión de Auditoría has always been the permanent advisory commission of the Consejo Nacional. The Consejo Nacional has granted the Comisión de Auditoría the specific responsibility, among others, to propose technical pronouncements and professional

standards in themes such as the Normas de Control de Calidad (NCC), normas de auditoría (AU), normas de atestiguación (AT), normas de revisión y compilación (CR), for approval and promulgation by the Consejo Nacional del Colegio de Contadores de Chile in accordance with current legislation and constituting it in a way which makes mandatory the exercise of professional standa rds and professional practice in Chile.

Previously the Comisión de Auditoría, during the period from 2004 to 2006, had agreed with the Colegio de Contadores - with relevant stakeholders and actors in its convergence project with BID-FOMIN group called Convergencia hacia las Normas Internacionales, that the plan to achieve convergence with international professional standards had to consist of basically two phases,

pillars or fundamentals, as follows:

(a) Given that historically the professional standards in Chile had been prepared based on professional standards issued by



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AICPA, as a first priority step, it was determined to completely finish the process. This critical first step and prerequisite to

be able to start the second phase was completed in late 2009 (see details of the standards issued in Table No. 1, presented in the following two pages); and

(b) In a second phase towards convergence to the international professional standards and also coinciding very conveniently

with the project of convergence towards international standards started by ASB of the AICPA, AICPA project called "Clarity Project". It was agreed to continue preparing local pronouncements based on each of the standards, now clarified, by the ASB of the AICPA. As the effective date of the aforementioned "Clarity Project" has been defined by the ASB of the AICPA, as December 15, 2012, the Comisión de Auditoría has drawn up a work plan that will allow for delivery of the

complete translation of all the aforementioned clarified standards ending in 2011 (see details in # 6). The effective date for local purposes will be for the year end December 31, 2012.

As a result of the first step already completed, professional standards approved and promulgated in Chile do not have materia l

differences with respect to the professional standards issued by ASB of AICPA. The professional standards detail that was issued during 2009, is the following: SMO 3 - Table Nº 1

Approval and

promulgation

professionals

standards

Approval

and

promulgation

date

Responsibility Resource Observation

Compendio con la compilación de

Normas de Auditoría Generalmente Aceptadas en Chile

- NAGA Nº 62(*)

(Secciones AU)

May 28, 2009


Proyecto BID-FOMIN Consejo Nacional del



Proyecto BID-FOMIN


Domestic professional standards are based on the auditing standards (SAS) of ASB of

AICPA. That is, the translation of AU Section corresponding to Handbook, Volume I 2009, with only three exceptions to be considered for early inclusion in our

Compendio con la compilación de Normas de Auditoría Generalmente Aceptadas en Chile, the translation to the corresponding



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Chile “Exposure Draft”, issued at this date, encompassed “Clarity Project”, to the

following AU Section:

(a) AU Section 161, (b) AU Section 316 and

(c) AU Section 411. Norma de Control

de Calidad (NCC) (Sección NCC)

August 18,

2009

Comisión de

Auditoría Proyecto BID-FOMIN


Comisión de

Auditoría Proyecto BID-FOMIN


Chile

Domestic professional standards are based on

the SQCS “Exposure Draft” issued by ASB from AICPA. After that, in November 2010, this paper would be issued as SQCS 8, A Firm's System of Quality Control

(Redrafted). Paper prepared based on ISQC issued by IAASB from IFAC.

Compendio con la compilación de Normas de Atestiguación (AT)

(Secciones AT)

November 6, 2009

Comisión de Auditoría Proyecto BID-FOMIN


Comisión de Auditoría Proyecto BID-

FOMIN Consejo Nacional del Colegio de

Contadores de Chile

Domestic professional standards are based on the SSAEs by ASB from AICPA. Corresponding to Handbook, Volume I 2009. The only exception should be the non-

emission of AT Section 701, considered non applicable in Chile. At an earlier date, July 21, 2011 AT Section 801was approved and promulgated.

Normas para Servicios de Contabilidad y de Revisión (CR),

December 21, 2009

Comisión de Auditoría Proyecto BID-FOMIN

Comisión de Auditoría Proyecto BID-

Domestic professional standards are based on the first AR-100 “Exposure Draft” (paper that later, in December 2009, would be issued as SSARS Nº 19), issued by ARSC



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Trabajos de Compilación y de

Revisión (Sección CR)

Consejo Nacional del


FOMIN


from AICPA.

(*) in specific domestic professional standards absence, the independent auditor must consider ISA issued by IFAC, “Statements of

Auditing Standards” (SAS) from AICPA) and other generally accepted standards issued by recognized professional associations. (See paragraph Nº 5 of Sección AU 101 included in NAGA Nº 62) Forming part of the obligations called as supplementary or additional, which have been contemplated in general terms in some SMOs

and in a particular way in SMO Nº 3, the following mentions what they are and what should be the appropriate action plan for each of them:

(a) Member bodies should notify their members of all International Standards, related Practice Statements and other papers issued

by the IAASB. (See paragraph Nº 1 of SMO Nº 3)

(b) The IAASB exposes proposed International Standards and proposed Practice Statements for public comment. Member bodies are encouraged to notify their members of all exposure drafts issued by the IAASB and to encourage them to comment on

behalf of those members that have an interest in quality control, auditing, review, other assurances, or related services standards. (See paragraph Nº 3 of SMO Nº 3)

(c) To assist with the implementation of International Standards or national standards and other related pronouncements that

incorporate International Standards. This includes promoting the use of related Practice Statements, or the development of national pronouncements that incorporate related Practice Statements or that provides similar implementation guidance. (See paragraph Nº 4 (b) of SMO Nº 3)

Regarding (a) y (b) and considering that transversally these obligations of diffusion affect more than one SMO, Colegio de Contadores de Chile has considered it necessary to add one additional section in this document, called “General Action Plan”, which hopes to respond in an appropriate and unique way to common obligations in the majority of SMOs.



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Regarding (c) the instrument designed, ready and used to this effect, both Comisión de Auditoría and Consejo Nacional del Colegio de Contadores de Chile have been historically called Circulares de Auditoría. (see in Table Nº 2 the detail of the interpretative pronouncements from the last Compendio con la compilación de Normas de Auditoría Generalmente Aceptadas en Chile - NAGA Nº 62). The normative resource for issuing Circulares de Auditoría, is as follows:

(a) “The Circulares de Auditoría are issued by Comisión de Normas de Auditoría of Colegio de Contadores de Chile A.G. and

they are not Normas de Auditoría Generalmente Aceptadas. Circulares de Auditoría are guidelines and interpretations or requirement matters, domestic requirements that do not modify the Normas de Auditoría Generalmente Aceptadas and in some

cases, are interpretations of the standards for specific situations. Circulares de Auditoría are mandatory for auditors. (see definition of these Circulares in Circular de Auditoría N°1).” (See paragraph Nº 5, Sección AU 150 of Compendio con la compilación de Normas de Auditoría Generalmente Aceptadas en Chile - NAGA Nº 62) y

(b) “The auditor should be knowledgeable and consider both guideline and the interpretations encompassed in the Circulares de Auditoría during the normal course of the engagement. If the auditor does not apply the Circulares de Auditoría, they should be prepared to explain how they have provided compliance to Normas de Auditoría Generalmente Aceptadas.” (See paragraph Nº 6, Sección AU 150 of Compendio con la compilación de Normas de Auditoría Generalmente Aceptadas en Chile - NAGA

Nº 62)

Comisión de Auditoría and Consejo Nacional del Colegio de Contadores de Chile since the issuance of the last Compendio con la compilación de Normas de Auditoría Generalmente Aceptadas en Chile - NAGA Nº 62, have issued and promulgated the following

Circulares de Auditoría:

SMO 3 - Table Nº 2

Circular de Auditoría – Material Nº Promulgation date

Circulares de Auditoría effective and some derogated Nº 1 to 17, are included as domestic interpretations issued in the Compendio con la compilación de Normas de Auditoría Generalmente Aceptadas en Chile - NAGA Nº 62

1 - 17 May 28, 2009

“Modelo del Informe del Auditor Referido a la Auditoría de los Estados Financieros al 31 de diciembre de 2009 (Denominados por la Superintendencia de Valores y Seguros como estados financieros “pro forma”)”

18 January 22, 2010



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“Modelo de Informe del Auditor Referido a Oficio Circular Nº 555 SVS para Afiliadas Directas” 19 January 22, 2010 “Modelo de Informe del Auditor Sucesor Referido a la Auditoría de los Estados Financieros del Ejercicio

2009 y Referencia a los Estados Financieros del Ejercicio 2008. (Preparados de acuerdo a NIFCH y NIIF)” 20 January 22, 2010

“Modelo del Informe del Auditor Referido a la Auditoría de los Estados Financieros al 31 de diciembre de 2009 y 2008 – Con Saldos al 1 de enero de 2008”

21 January 22, 2010

“Modelo de Informe en Repuesta a Requerimiento de la Superintendencia de Bancos e Instituciones Financieras, envío anual de un informe de los auditores externos sobre el proceso de calidad de la información del archivo de Deudores del Manual de Sistema de Información (octubre de 2009)"

22 September 3, 2010

"Modelo del Informe del Auditor Referido a la Revisión de los Estados Financieros Intermedios al 30 de junio de 2010 (Cuando los estados financieros al 31 de diciembre de 2009, fueron presentados según denominación

de la Superintendencia de Valores y Seguros, como estados financieros “pro forma” y existen auditores predecesores distintos a los auditores sucesores)"


“Fecha del Informe de Auditoría” 24 March 24, 2011

"Informe del Profesional Independiente sobre la Aplicación de Procedimientos Acordados (Requerimientos Circular 1962 (SVS) y Circular 1518 (BCS))"


“Procedimientos Acordados para la Realización de Trabajos en Contraparte S.A. (Contraparte Central y Liquidación de Valores - CCLV)”

26 March 24, 2011

“Modelo de Informe en Repuesta a ampliación del Requerimiento anterior de la Superintendencia de Bancos e Instituciones Financieras, envío anual de un informe de los auditores externos sobre el proceso de calidad de la información de los archivos del Manual de Sistema de Información (mayo de 2011)"

27 July 21, 2011

Establishing and maintaining an ongoing process to ensure adoption and enactment of the current and future professional standards by IAASB of IFAC

8. 2010

Convergence toward professional standards (ISQC, ISA, ISRE, ISAE y ISRS) issued by IFAC, are a strategic priority for Colegio de Contadores de Chile. The defined

methodology to achieve this strategic objective is further defined in terms of translating and promulgating ASB standards of AICPA that are issued in terms of their own process of convergence with the professional standards of

First half of 2012

(currently in process)






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IFAC, this is done through a project named the “Clarity

Project”. Significant differences that could still result from that process will be announced to all members and all others who are interested in the matter by issuing a Circular de Auditoría pertaining thereto.

Continued reviewing and monitoring to the effective and future SMOs compliance, in particular SMO Nº 3 for Colegio de Contadores

de Chile

9. 2011

Within the statutory changes for the Colegio de Contadores de Chile are those related to the definition of those

responsible for permanent monitoring of all areas of compliance with IFAC SMOs. These effects were dated August 6, 2011 and constituted by the Comisión de Reforma de Estatutos.

First half of 2012

Comisión de

Reforma de Estatutos Consejo Nacional del Colegio de

Contadores de Chile

Comisión de

Reforma de Estatutos Consejo Nacional del Colegio de

Contadores de Chile


10. Ongoin

g

Perform periodic review of CCCH responses to SMO of the IFAC self-assessment questionnaires and update the responses as and when it is necessary. Once updated

inform IFAC compliance staff about the updates in order for the compliance staff to republish updated information.

Ongoing



Action Plan Subject: SMO 4 – IESBA Code of Ethics

Action Plan Objective: Ensure alignment of CCCH Code of Ethics with IESBA Code of Ethics

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Overview:

To restructure the Comisión de Ética y Ejercicio Profesional of Colegio de Contadores de Chile to encompass the following activities: (a) Review of Código de Ética of Colegio de Contadores de Chile with IESBA Code of Ethics and Professionals Standards, (b) Establishment and maintenance of an ongoing process that assures the adoption and promulgation of effective and future modifications and interpretations of IESBA Ethics and Professional Standards, (c) Coordinating and linking of Comisión de Ética y

Ejercicio Profesional works and (d) Re-designing of processes that allow for an effective application of IESBA Ethics and Professionals Standards. Background:

In accordance with the Statutes constitution of Colegio de Contadores de Chile only those denominated as colegiados activos are obliged to comply with professional standards issued by Colegio de Contadores de Chile and such individuals can only be individual accountants by profession (see articles Nº 5, 5bis, 6, 7 y 8 of Statutes). Given that since 1981 it has not been a legal obligation in Chile

or prior condition, for the accounting professional practice, to be a member of Colegio de Contadores de Chile and today our institution represents only one part of the total of all professionals in Chile. For this reason, the action plan focuses only on the colegiados activos members of Colegio de Contadores de Chile.

Colegio de Contadores de Chile, legal institution and legal successor of Colegio de Contadores, a public legal entity created by Ley N° 13.011 September 13, 1958. Colegio de Contadores de Chile has the faculty and obligation to establish professional standards, among them, Código de Ética used in Chile, a function that in practice is to be performed and exercised by the Consejo Nacional del Colegio de Contadores de Chile.

1 The first section describes the basics components of the Plan Estratégico of Colegio de Contadores de Chile 1.1 Mission



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“Promoting rationalization, development and safe-guard of the activities of the accounting profession; spread throughout the community the role of the profession; care for your progress, prestige, perfection and prerogatives, for your normal and adeq uate exercise; seek the effective incorporation of the accountant in cultural, economic and social development of the country and maintain professional discipline of its members”.

1.2 Vision “Organism for congregating, representing and contributing to the competitive development of the accounting profession in Chi le,

recognized for the excellence of its work, its contributions to national service, and for the aptitude, quality and ethical conduct of its members”. 1.3 Principles and values of Colegio de Contadores de Chile

(a) Colegio de Contadores de Chile shall develop and care for the maintenance of higher ethical conduct between colegiados

activos, directives and employees. (b) The organizational structure and the members of Colegio de Contadores de Chile shall always maintain a perspective of

national unity of the order and shall maintain focus on the integrated professional members. (c) In the daily practices Colegio de Contadores de Chile and its members colegiados activos will consider as their main objective

the delivery of true and fair accounting information. (d) The main task and principal objective of Colegio de Contadores de Chile and the pillar of its institutional development is in the

defense of the profession. (e) Respect for the persons and professionals are the core of communication and institutional participation. (f) The continuing practice of training and research in accounting and related areas will be a main tool for professional

strengthening and a contribution to the country‟s development.

(g) In institutional management, Colegio de Contadores de Chile will seek transparency and participation in order to assure the continuity and the compliance of our institutional objectives.

(h) The development of activities of the Colegio de Contadores de Chile will maintain permanent focus on the quality of the services exercised as well as innovative activities, as a source of ongoing improvement.

(i) The Colegio de Contadores de Chile will not discriminate based on age, gender, religious beliefs, nationality, nor any other characteristics and/or conditions.



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(j) The Colegio de Contadores de Chile will be neutral in all political aspects, only expressing views related to its own professional matters.

(k) The Colegio de Contadores de Chile shall foment social responsibility and shall comply with its commitment to provide services to colegiados activos and the community.

Re-structuring of Comisión de Ética y Ejercicio Profesional of Colegio de Contadores de Chile

11. 2011

Comisión de Ética y Ejercicio Profesional of Colegio de Contadores de Chile, its re-structuration, with the main purposes of:

(a) The Comisión de Ética y Ejercicio Profesional will watch over performance and the professional exercise of members of Colegio de Contadores de Chile, supporting this with the quality of management as well

as the protection of services and clients. (b) Promotion of safe-guarding and strengthening the ethics

and transparency in the professional practice of public accountants to ensure compliance with public objectives

and with those of Colegio de Contadores de Chile. (c) Acting as a communication medium between Colegio

de Contadores de Chile and its organic and functional structure at a national level, for the design, promotion

and development of plans and strengthening of activities of ethics and transparency of Colegio de Contadores de Chile and its members.

First half of the 2012

Comisión de Ética y Ejercicio

Profesional

Comisión de Ética y Ejercicio Profesional

Review of Código de Ética of Colegio de Contadores de Chile with IESBA Code

12. 2011 The review of Código de Ética del Colegio de Contadores de Chile, approved in 2005, hopes to contribute to the daily

Ongoing Comisión de Ética y




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improvement of our profession including higher quality, with

more dedicated and just professionals willing to be an example of sincerity that dignifies our actions. This review consists of the following:

(a) Discuss structure and contents between our Código de Ética of Colegio de Contadores de Chile, and Código de Ética of IESBA, establishing the basic principles of professional ethics for accountants and providing a

framework and guidance for applying these principles. (b) The Código de Ética must be considered by all

accountants who practice their profession in Chile. The responsibilities of an accountant are not to exclusively

satisfy the needs of a client or employer in particular, but rather one of public interest, understanding that the common welfare of the community of people and institutions which are served by the profession come

first. (c) Review of the basic Deontological Principles of Código

de Ética: •Integrity: rectitude, probity, dignity, sincerity, loyalty,

truth. •Objective: impartiality, fiar-mindedness. •Independence. •Responsibility.

•Confidentiality: loyal and authentic commitment. •Respect of normative and legal provisions. •Competitive and professional advancement. •Diffusion y collaboration.

•Peer Respect. •Ethical behavior.

Ejercicio

Profesional

Profesional



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Establishing and maintaining an ongoing process to ensure adoption and enactment of the current and future amendments and

interpretations of professional ethical standards of IFAC

13. 2011

Convergences towards professional ethical standards issued by IESBA are a strategic priority for the Colegio de Contadores de

Chile. The methodology to achieve this strategic objective is defined in terms of continuing translation and enacting the changes and clarifications to the IESBA Code of Ethics for Professional Accountants that are issued.

Ongoing

Comisión de Ética y

Ejercicio Profesional



14. 2011 Development and maintenance of training programs on ethics is a strategic priority of the Colegio de Contadores de Chile.

Ongoing INDEP INDEP

Coordinating and linking the work of the Comisión de Ética y Ejercicio Profesional

15. 2011

Working Plan of the Comisión de Ética y Ejercicio Profesional

for maintaining a link with Consejos Regionales in the country, among others, are as follows:

(a) Elaboration of a communication and dissemination of

the duties and obligations under the Código de Ética of Colegio de Contadores de Chile.

(b) Develop, coordinate and implement courses, workshops and other educational events with members of the

Colegio de Contadores de Chile, with the purpose to increasing ethical and personal level.

(c) Spread information technologies supporting the provisions of the Código de Ética y Transparencia

through available means to help the formation of anti-corruption awareness and practices.

(d) Form Manuales de Inducción y Ética for Colegio de Contadores de Chile, which operationalize the

Ongoing

Comisión de

Ética y Ejercicio Profesional


Profesional



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provisions of the Código de Ética and the compliance

with the principles and values statement for the Colegio de Contadores de Chile.

(e) Spread the principles and values of Colegio de Contadores de Chile, and spread standards and policies

of the Colegio de Contadores de Chile, related to performance of the professional ethic of the public accountant.

(f) Develop a transparent and informed institutional

management, consistent with the declaration of principles and values of Colegio de Contadores de Chile, which supports the effective application of the Código de Ética of Colegio de Contadores de Chile.

Redesigning the processes that allow the application of the provisions of Código de Ética

16. 2011

Review of the sanctions and procedures established in the code of ethics. The sanctions available to the Comisión Disciplinaria (disciplinary commission) or Tribunal de Honor (court of honor) may be the following, which will be applied according

to the severity of the offense: (a) Private or public admonition (b) Monetary Fine. (c) Suspension.

(d) Expulsion of Colegio de Contadores de Chile. (e) Reporting to the authorities. (f) In addition, Consejo Nacional of Colegio de

Contadores de Chile may agree to raise awareness of

the sanction.

Ongoing

Comisión de Ética y

Ejercicio Profesional


Continued review and monitoring for compliance of SMOs, current and future, of IFAC, in specific SMO Nº 4, for Colegio de

Contadores de Chile



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17. 2011

Within the statutory changes to the Colegio de Contadores de Chile are those related to the definition of those responsible for permanent monitoring of all areas of compliance with IFAC SMOs. For these effects, the Comisión de Reforma de Estatutos

was created on August 6, 2011.

First half of

the 2012

Comisión de

Reforma de Estatutos Consejo

Nacional del Colegio de Contadores de Chile




18. Ongoing

Perform periodic review of CCCH responses to SMO of the IFAC compliance self-assessment questionnaires and update responses as and when necessary. Once updated inform IFAC compliance staff about the updates in order for the compliance

staff to republish updated information.

Ongoing



Action Plan Subject: SMO 5 – International Public Sector Accounting Standards (IPSAS)

Action Plan Objective: CCCH Promotion of IPSAS

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Overview:

Colegio de Contadores de Chile has no legal authority to issue and promulgate accounting standards for the government sector. Solely responsible to issue and promulgate such government accounting standards is Contraloría General de la República de Chile. In this sense, our main goal is to continue helping, assisting and advising the Contraloría General de la República de Chile in the convergence process to IPSASs. In the opinion of the Colegio de Contadores de Chile, Contraloría General de la República de Chile

has adopted and adheres to all the obligations contained in SMO 5. Background:

Although Colegio de Contadores de Chile has the authority and obligation to establish professiona l standards used in Chile, which in practice is a function performed and exercised by the Consejo Nacional del Colegio de Contadores de Chile. With respect to the issuance and promulgation of accounting standards for the government sector, those responsible for issuing and promulgating such accounting rules for the government sector is Contraloría General de la República de Chile.

Based on the above, the Colegio de Contadores de Chile has no regulatory powers, penalties or oversight regarding the implementation and exercise of the accounting practices of institutions, agencies and entities in the Estado or Sector Governmental. However, the Colegio de Contadores de Chile always collaborates with the Contraloría General de la República de Chile and

especially now during the process of convergence with IPSAS. As a first obligation, Member bodies should notify their members of all IPSASs, guidelines, studies and occasional papers developed by the IPSASB. (See paragraph 1, SMO 5)

Colegio de Contadores de Chile has defined participation in the IPSAS dissemination through the global convergence process undertaken in 2004 as a part of the BID-FOMIN convergence Project towards international standards. Thus, Colegio de Contadores de Chile informs professionals and governments about the requirements of these IPSAS.




Date


As obligation Nº 2. IPSASB exposes IPSAS Drafts for public comment. Member bodies are encouraged to notify their members of a ll exposure drafts issued by the IPSASB and to encourage them to comment on beha lf of those members that have an interest in public sector accounting standards. (See paragraph 2, SMO 5)

Colegio de Contadores de Chile through Comisión de Principios y Normas de Contabilidad , has defined incorporation as an integral part of its ongoing work, which, starting in 2011 will incorporate an analysis of IPSAS and the IPSAS Drafts issued by IPSASB of IFAC. This in order to publicize and disseminate the contents and proposals for these IPSAS to colegiados activos and the general public.

Within its project of updating the website Colegio de Contadores de Chile has considered (from the year 2012), dissemination or linking the IPSAS for public knowledge. In addition, comments and suggestions of IPSAS Drafts that may be received by professionals, and will be channeled through the Comisión Principios y Normas de Contabilidad for comments on the drafts and

material analysis to IFAC. Obligation 3. Member bodies must exercise their best efforts (see paragraph 3, SMO 5)

(a) To incorporate the requirements of IPSASs into their national public sector accounting requirements, or where responsibility for the development of national public sector accounting standards for financial reporting by governments and others in public sector organizations lies with third parties, to persuade those responsible for developing those requirements that general purpose financial statements of public sector entities other than government business enterprises

(GBEs) should comply with IPSASs, and should disclose this compliance; and

(b) To assist with the implementation of IPSASs, or national public sector accounting standards that incorporate IPSASs.

The Contraloría General de la República de Chile through the Oficio_CGR 54977 and exercising the powers incumbent, has estimated a project to begin to adopt IPSAS. In this context, the Colegio de Contadores de Chile has participated in several meetings with Contraloría General de la República de Chile, in order to provide knowledge about the convergence process and to participate in it in an advisory capacity. The Colegio de Contadores de Chile firmly believes that given the current scenario and the legal powers of

the Contraloría General de la República de Chile, said institution works to ensure the objectives of the SMO 5.




Date


Help and assist the Contraloría General de la República de Chile in the process of convergence IPSASs.

19. 2011

Help and assist the Contraloría General de la República de Chile in the process of convergence

IPSASs. This involves:

(a) Regular meetings (b) Working together

(c) Ongoing advice

Permanent role

Comisión Técnica de Normas y Principios de Contabilidad

Comisión Técnica de Normas y Principios

de Contabilidad


20. Ongoing

Perform periodic review of CCCH responses to the IFAC compliance self-assessment questionnaires and update responses as and when necessary. Once updated, inform IFAC compliance staff about the

updates in order for the compliance staff to republish updated information.

Ongoing



Action Plan Subject: SMO 6 –Investigation and Discipline Action Plan Objective: CCCH Promotion of SMO 6

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Overview:

The Colegio de Contadores de Chile by law in the country has no control over, nor any ethical custody and therefore also lacks the ability to conduct disciplinary investigations of: (a) external audit companies, registered in the Registro de Empresas de Auditoría Externa (REAE) sole right to perform audits of listed companies and / or controlled in Chile and (b) other professionals in accounting and public accounting, other than active collegiate members of the Colegio de Contadores de Chile. In any case, according to the

Institute of Chartered Accountants of Chile, the SVS and SBIF for the case of paragraph (a) and the Courts of Justice in the case of paragraph (b) give the proper compliance with all obligations including SMO 6.

Nevertheless, in a first phase is the development of a process of reviewing procedures and performance measures conducive to ethical

and institutional members. This process will be incorporated into the work of the Comisión de Reforma de Estatutos of Colegio de Contadores de Chile, which began its duties on Saturday, August 6, 2011. The work plan of the Comisión de Reforma de Estatutos is scheduled to deliver a first draft reform of laws for the month of December 2011. Then, to consider the following actions: (a) an approval process of reform of the Statutes which must be submitted for consideration by all instances of Colegio de Contadores de

Chile and regulators should respond to our institution and (b) with the approval of the reforms, initiatives and development of a plan for dissemination and training of the bodies involved in the development and implementation of the Code of Ethics and research and institutional discipline.

Background:

Previously considering the following aspects:

(a) from the Ley de Gobiernos Corporativos de Chile Nº 20.382 issued and promulgated on October 20, 2009, which states that the external audit function for entities listed and / or controlled must only be performed by companies devoted to external

audits, prohibiting that companies listed and / or audited companies be audited by professionals such as "natural persons". Originating in this case is the subject of disciplinary investigations that exclusive responsibility of the SVS and SBIF trial and the Colegio de Contadores de Chile are due to implement all the obligations contained in SMO 6.



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(b) In accordance with the Statutes establishing the Colegio de Contadores de Chile referred to as colegiado activo (active

collegiate), are those who are obliged to comply with professional standards issued by the Colegio de Contadores de Chile and those obtaining such quality as " natural persons" are of the accounting profession (see articles N° 5, 5bis, 6, 7 and 8 of the

Statute). Originating in this case that disciplinary investigations are matters within its competence exclusively to the Courts and in the opinion of the Colegio de Contadores de Chile are due to implement all the obligations contained in SMO 6.

(c) Finally, in Chile since 1981 it is no longer a legal obligation or a precondition for the exercise and practice of accounting and

public accounting, to be enrolled in the Colegio de Contadores de Chile. Our institution currently represents only a portion of the grand total of all professionals in Chile, being the part of professionals on which, in fact, the Colegio de Contadores de Chile, can perform procedures of disciplinary investigation.

The Work Plan of the SMO 6 Colegio de Contadores de Chile, has been formulated on the same basis of the SMO 4 for the IFAC Code of Ethics, which are:

(a) The vision statement of the Colegio de Contadores de Chile.

(b) The formulation of its mission, which incorporates the provisions of Article 3 of its Statutes. (c) The Declaration of Principles and Values declared by the Colegio de Contadores de Chile leads and conditions the ethical

performance of its professionals and the values of the institution and its members. (d) The Strategic Planning of the Colegio de Contadores de Chile, presented for the period 2011-2015.

The statements of work, therefore, are developed based on the provisions of the Statutes of the Colegio de Contadores de Chile.

Review of processes and structure of the Colegio de Contadores de Chile, on ethical conduct:

Tribunal Especial (Special Court) The Statutes of the Colegio de Contadores de Chile contemplate the existence of a Special Court (see Article 47 of the Statute), which

shall consist of five members and three alternates. They will last two years in office, and may be re-elected. The main duties of this court are: "To consider and decide appeals that those affected stand against the decisions of Consejo Nacional of Colegio de



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Contadores de Chile, for his actions as leaders and candidates for leadership, when the Consejo Nacional of Colegio de Contadores de Chile resolved in the character of first instance. In this case the special tribunal will be the final opportunity within the schoo l to resolve conflicts and finally, interpret the statute, when he meets the appeal.

Tribunal de Honor (Court of Honor) The Statute of Colegio de Contadores de Chile, Article 49, establishes the existence of a Court of Honor composed of three members which will last three years in office and may be re-appointed indefinitely. Members of the Court of Honor will be appointed by the

Consejo Nacional of Colegio de Contadores de Chile in three years, the Consejos Regionales may propose candidates from among the active collegiate where appropriate. The role and attribution of the Court of Honor is to hear and determine the decisions of Tribunales de Disciplina Regionales

(Disciplinary Tribunal Regional) and to inform the Consejo Nacional of Colegio de Contadores de Chile on required matters of ethics and discipline. The Court of Honor may apply to ethics or discipline offenders, penalties under the Statute of Colegio de Contadores de Chile. In addition, if any violations considered serious are proposed to the Consejo Nacional of Colegio de Contadores de Chile the sanction of expulsion may be applied.

The Tribunal de Disciplina Regional (Regional Disciplinary Tribunal) The Statute of Colegio de Contadores de Chile established (Art. 52), each Consejo Regional there will be permanent a Regional

Disciplinary Tribunal, consisting of three members that will last three years in office and whose members are appointed by the Consejo Regional. It shall be the Regional Disciplinary Tribunal, at the request of Consejo Regional or the Consejo Nacional of Colegio de Contadores

de Chile, as appropriate, to learn of the offenses to the Statute and Regulations of Colegio de Contadores de Chile, as well as professional ethics violations and to conduct relevant research, recognizing failures and applying sanctions. The Regional Disciplinary Tribunal may apply the following sanctions:

(a) Verbal warning; (b) Written censorship, public or private;



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(c) Suspension for up to three months of all of the rights of an active collegiate in the institution. The suspension can only be

applied up to three months before an election.

The measures of fine and suspension for more than three months are only reserved by the Court of Honor. In the case of the expulsion order it shall be settled by the Consejo Nacional of the Colegio de Contadores de Chile in accordance with the provisions in the final paragraph of number 13.25 of Article 13 of this Statute.

The foregoing, without prejudice to the Regional Disciplinary Tribunal, can and should, at the Regional level, proceed to the first investigations of the allegations and then raise the investigation to the Court of Honor. Measures of verbal reprimand and censure in writing may not to be appealed, the penalty of suspension may be appealed within thirty days from the time the letter was communicated to the plaintiff so that the infraction can be is reviewed by the Court of Honor as a whole.

The Regional Court of Discipline, continued: The Regional Court of Discipline will meet and adopt agreements with the majority of its members in office, unless this statute

establishes a different quorum. In the event of a tie vote, a vote shall be held by those who preside. The work of members of the Regional Disciplinary Tribunal will be “ad-honorem" and may only be punished in the exercise of office for outstanding dereliction of duty and violation of the Statute that sets standards for its operation. Respective cognizance of the

charge to the Court of Honor as a whole will be made in one instance.

Redesign of the processes that allow the application of the Code of Ethics and review of the sanctions and procedures



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21. 2011

Redesign of the processes that allow the application of the Code of Ethics and review of the sanctions and procedures, established by the Code of Ethics. The sanctions available to the Disciplinary Commission or the

Court of Honor could be the following, which are applied according to the severity of the offense:

(a) Private and / or public reprimand.

(b) Monetary Fine.

(c) Suspension.

(d) Expulsion from the Colegio de Contadores de

Chile.

(e) Reported to authorities.

(f) In addition, the Consejo Nacional of the Colegio de Contadores de Chile may agree to raise

awareness of the penalty.

First half of 2012


Profesional Comisión de Reforma de

Estatutos


Profesional Comisión de Reforma de

Estatutos

Plan for dissemination and training about procedures and ethics provisions

22. 2011

Plan for dissemination of procedures and ethical provisions:

(a) First Phase. Development of a process of reviewing the procedures and measures conducive to the institutional and ethical performance of its

First half of 2012





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members. This process will be incorporated into the work of the Comisión de Reforma of Estatutos of the Colegio de Contadores de Chile which began operations on Saturday, August 6, 2011.

The work plan of the Constitution Comisión of Reforma de Estatutos is scheduled to deliver a first draft reform of Statutes for the month of December, 2011.

(b) Approval process of reform of the Statutes which

must be submitted for consideration by all instances of Colegio de Contadores de Chile and

regulators should respond to our institution.

(c) With the approval of the reforms, initiatives and development of a plan for dissemination and

training of the bodies involved in the development and implementation of the Code of Ethics and Institutional Research and Discipline.

Review and ongoing monitoring for compliance of current and future SMOs IFAC, in particular SMO No. 6 by the Colegio de

Contadores de Chile.

23. 2011

Within the statutory changes intended for the Colegio de Contadores de Chile are those related to the definition of

those permanently responsible for monitoring all areas of compliance with IFAC SMOs. For these purposes, initiation of the Comisión de Reforma de Estatutos was dated August 6, 2011.

First half of 2012

Comisión de

Reforma de Estatutos Consejo Nacional

del Colegio de Contadores de Chile

Comisión de

Reforma de Estatutos Consejo Nacional

del Colegio de Contadores de Chile



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24. Ongoing

Perform periodic review of CCCH response to the IFAC compliance self-assessment questionnaires and update sections relevant to relevant SMO. Once updated inform IFAC compliance staff about the updates in order for the

compliance staff to republish updated information.

Ongoing



Action Plan Subject: SMO 7 – International Financial Reporting Standards (IFRS)

Action Plan Objective: Continue to support adoption and implementation of IFRS

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Overview:

The Colegio de Contadores de Chile has enacted the translation of IFRS without modification. The Colegio de Contadores de Chile will continue to issue and promulgate the new IFRS standards and interpretations that will be broadcast and will continue with professional training programs on them.

Background: The Colegio de Contadores de Chile legal successor of Colegio de Contadores, a public legal entity created by Ley Nº 13.011 dated September 13, 1958. The Colegio de Contadores de Chile has the authority and obligation to establish professional standards used in

Chile, a function which in practice is performed and exercised by the Consejo Nacional of Colegio de Contadores de Chile. The Comisión de Normas y Principios Contables of Colegio de Contadores de Chile translate IFRS, a translation which is under a framework contract concluded by the Colegio de Contadores de Chile and IFRS Foundation, which expressly authorizes the Colegio

de Contadores de Chile to translate, abiding by, among others, the following duties:

(a) enactment must be accompanied by a specific designation of origin, that is, "Chilean standards" and without reference to the nature or quality of "international",

(b) restriction of movement is understood to be only Chile, noting that intellectual property rights of the original IFRS in English and all translations belong exclusively to IFRS Foundation.

(c) advise of any amendments and adjustments made, only if applicable, a situation that has not arisen and will not arise in Chile, given that the adoption of IFRS is total and without reservation.

The following are the obligations described in SMO 7:



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Obligation 1: Member bodies of IFAC should support the work of the IASB by notifying their members of every IFRS (see

paragraph 1, SMO 7). The Chilean translation of IFRS in its 2008, 2009 and 2010 versions including new standards and interpretations issued by IASB in

2010, are on the website of the Colegio de Contadores de Chile. In addition, meetings, conferences and talks related to IFRS are held constantly, made by National Directors and members of Technical Commissions, regional headquarters and at various universitie s around the country. Finally, the Institute for Research and Professional Development (INDEP) performs outreach activities both at headquarters and in regional headquarters, in addition to a wide range of training courses related to IFRS, which are held pe rmanently.

Obligation 2. The IASB exposes proposed IFRSs for public comment. Member bodies are encouraged to notify their members

of all exposure drafts issued by the IASB and to encourage them to comment on behalf of those members that have an interest

in accounting standards (see paragraph 2, SMO 7).

The Comisión de Normas y Principios Contables of the Colegio de Contadores de Chile, discussed the drafts of standards released by the IASB for comment, in order to post comments and technical proposals on the topics proposed in the above drafts. Within the project of updating the website of the Colegio de Contadores de Chile, the idea is to place a link available to registered members, the

draft Standards and amendments proposed by the IASB, in order to collect suggestions and comments submitted by professionals in the country and channel them through the Comisión de Normas y Principios de Contabilidad for submission to the IASB. However, and part of the obligations referred to as complementary or additional, which have been referred to in general terms in

several of the SMOs and SMO N° 7, then mentioned what these are and what the appropriate action plan for each of them will be :

(a) Member bodies should inform all members of all IFRS and other documents published by the IASB. (b) IASB Standards sets out its proposals for public comment. It encourages member bodies to inform their members of all

exposure drafts issued by IASB and promote the comments by those participants concerned. For points (a) and (b) and considering that transversally these obligations affect more than one SMO, the Colegio de Contadores de Chile considered it necessary to add an additional section at the end of this document, as has been called a Plan of Action ( "General

Action Plan"), which is expected to respond appropriately and only to obligations that are common to most of the SMOs.



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Obligation 3. Member bodies of IFAC should support the work of the IASB by notifying their members of every IFRS: (see

paragraph 3, SMO 7)

(a) To incorporate the requirements of IFRSs in their national accounting requirements, or where the responsibility for

the development of national accounting standards lies with third parties, to persuade those responsible for developing

those requirements that general purpose financial statements should comply with IFRSs, or with local accounting

standards that are converged with IFRS, and disclose the fact of such compliance; and

(b) To assist with the implementation of IFRSs, or national accounting standards that incorporate IFRSs.

The Colegio de Contadores de Chile, has a major effort in the process of convergence towards IFRS Chile, starting very early in the year 1997, through the issuance of Boletín Técnico (Technical Bulletin) N° 56 which stated that, "In the absence of a Technical Bulletin issued by an accounting standard or principle generally accepted in Chile, must be used preference to international

accounting standards (IAS) for in cases where there were no Technical Bulletin or a NIC on a given topic is to apply the principles or accounting standards of other relevant international organizations. "Then up to the Comisión de Principios y Normas de Contabilidad and the convergence project of the Colegio de Contadores de Chile and the IDB-MIF (called Convergence to International Standards), develop a work plan to achieve the translation with the adoption IFRS in Chile, for these purposes by issuing Technical Bulle tins that

fully and unreservedly adopted IFRS. The work of the Comisión de Principios y Normas de Contabilidad, continues on an ong oing basis and to date has been issued following technical bulletins convergence and adoption of IFRS:

(a) Technical Bulletin No. 79 (IFRS version 2008) dated December 15, 2008.

(b) Technical Bulletin No. 79 (IFRS version 2009) dated December 21, 2009. (c) Technical Bulletin No. 80 (IFRS update 2009) dated December 21, 2009. (d) Technical Bulletin No. 79 (IFRS version 2010) dated December 21, 2010. (e) Technical Bulletin No. 81 (IFRS update 2010) dated December 21, 2010.

(f) Technical Bulletin No. 82 (supplement to effective dates) dated December 21, 2010. (g) Technical Bulletin No. 1 EPYM dated December 21, 2010.

Establishment and maintenance of a permanent process to ensure adoption and enactment of the current and future professional standards IFRS



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25.

2010

The convergence to IFRS issued by IASB is a strategic

objective for the Colegio de Contadores de Chile. The defined methodology for achieveing this strategic objective is further defined in terms of translating and promulgating standards of the IASB.

Permanent role

Comisión de Normas y Principios Contables

Comisión de Normas y Principios Contables

26. 2011

The development and maintenance of IFRS training programs is a priority of the Colegio de Contadores de Chile.

Permanent role

INDEP INDEP

Continued review and monitoring for compliance of current and future SMOs IFAC, in particular SMO N° 7, by the Colegio de Contadores de Chile

27. 2011

Within the statutory changes intended for the Colegio de Contadores de Chile are those related to the definition of those permanently responsible for monitoring all areas of compliance with IFAC SMOs.

For these purposes, initation of Comisión de Reforma de Estatutos was dated August 6, 2011

First half of 2012

Comisión de

Reforma de Estatutos Consejo

Nacional del Colegio de Contadores de Chile




28. Ongoing

Perform periodic review of CCCH response to the IFAC compliance self-assessment questionnaires and

update sections relevant to relevant SMO. Once updated inform IFAC compliance staff about the updates in order for the compliance staff to republish updated information.

Ongoing

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