We are pleased to inform you of the important Resolution of the Revenue Agency, which establishes specific rules for accounting and the keeping of accounting records in companies that are not subject to supervision. The resolution, NAC-DGERCGC24-00000015, dated April 15, is available in the Official Register.
Key Details of the New Regulations:
1. Accounting System
Companies that do not have a supervisory body, or where the existing body has not issued accounting standards, are now required to adopt the double-entry accounting system.
2. Language and Currency:
Accounting must be done in Spanish and all figures must be expressed in US dollars.
3. International Standards:
The International Financial Reporting Standards for Small and Medium Enterprises must be applied to ensure a global standard of accounting practices.
4. Obligations and Record Keeping:
Accounting information must be retained for a minimum of seven years. This responsibility falls on:
Individuals who played a key role in the management of the accounts.
Trustees who are tax residents of Ecuador and who manage foreign trusts or similar legal structures must also keep accounting records for a minimum of seven years, even if they no longer hold these positions.
These measures ensure transparency and proper financial management, thereby reinforcing integrity and confidence in the Ecuadorian business system.
Need advice on how these regulations may affect your business?
Contact us today to schedule a consultation with our business law experts to ensure compliance with all current regulations. At Meythaler & Zambrano Abogados, we are committed to providing you with the guidance and support you need to safely and efficiently manage your accounting responsibilities.
