Accounting standards regulators in Chile adopted IFRS through two phases. Starting from 2004, after a World Bank ROSC (the Reports on the observance of Standards and Codes) on Accounting & Auditing was carried out in the Chilean market, Chile is in the process of adopting IFRS for listed companies (Lima, 2005, P5). However, significant inconsistencies between Chilean GAAP and IFRS still exist in terms of recognition and measurement of the various elements of the financial statements (World Bank, 2004, P10). In Chile, all banks were required to follow IFRS in 2007 or 2008 (World Bank, 2004, P13), while deferred taxes were regulated by the “Boletin Tecnico No: 60” which use almost the same regulation as IAS 12 in 2008 (Mahenthiran, Blanco & Cademartori, 2008, P3). Finally, in January 2009 all Chilean listed companies were required to adopt IFRS and abandon US GAAP (Pizarro, Mahenthiran, Cademartori & Curci, 2008, P4). This makes the adoption of IFRS in Chile is currently in Stage IV.
Lima, P. (2005). The Sixth Meeting of the Latin American Corporate Governance Roundtable: White Paper Progress Report – Chile. Retrieved 11 September 2009, from http://www.oecd.org/dataoecd/39/36/35656836.pdf
World Bank. (2004). ROSC: Chile. Retrieved 11 September 2009, from http://www.worldbank.org/ifa/rosc_aa_chl.pdf
Mahenthiran, S., Blanco, M. T. & Cademartori, D. (2008). Effects of Accruals, Cash flows, and Taxes on Earnings Management: Evidence from Chile and Malaysia. Retrieved 11 September 2009, from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1272435Pizarro, V., Mahenthiran, S., Cademartori, D. & Curci, R. (2008). The Impact of Chilean Firms’ Ownership Structures On Performance and Disclosure Levels. Retrieved 11 September 2009, from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1330613