PERÚ Ministerio de Economía y Finanzas
SMV
Superintendency of the Market de Valores

"Decade of Equal Opportunities for Women and Men" "Year of the Bicentennial, of the consolidation of our Independence, and of the commemoration of the heroic battles of Junín and Ayacucho"

Miraflores, 14 June 2024

CIRCULAR No. 198-2024-SMV/11.1

Gentlemen
Issuers of the General Regime
Present.-

Ref.: File No. 2024024731

I address you in relation to your obligations to prepare and present financial statements with full observance of the International Financial Reporting Standards – IFRS1 , internationally in force, in accordance with the provisions of article 4, numeral 4.12 , of the Rules on Preparation, Presentation and Dissemination of Financial Statements, Annual Report and Management Report applicable to entities supervised by the Superintendency of the Securities Market (hereinafter, Rules on Financial Statements), approved by SMV Resolution No. 013-2023-SMV/01, published in the Official Gazette El Peruano on 10 December 2023.

In this regard, it is worth highlighting the importance of IFRS, as the sole standard for the preparation of financial statements of securities issuers in Peru, since they contribute to the international comparability and quality of information, allowing investors and other market participants to make duly informed decisions about their businesses.

In that sense, it is pertinent to reiterate to your represented entity, in its capacity as an issuer with securities registered in the Public Registry of the Securities Market - RPMV, the following aspects that must be considered, in the preparation and presentation of financial statements, due to their relevance in determining compliance with IFRS:

I. Full observance of IFRS

[1] The International Financial Reporting Standards - IFRS are the standards and interpretations issued by the International Accounting Standards Board (IASB). Such standards comprise:

a) The International Financial Reporting Standards

b) The International Accounting Standards

c) The IFRIC Interpretations; and,

d) The SIC Interpretations

[2] "Article 4.- Applicable standard 4.1. The obligated subjects must prepare their financial statements with full observance of IFRS and, to the extent applicable, the Financial Information Regulation and the Manual for the preparation of Financial Information." (Underlining added)

Electronic document digitally signed within the framework of Law No. 27269, Law on Signatures and Digital Certificates, its Regulation and amendments. The integrity of the document and the authorship of the signature(s) can be verified at https://apps.firmaperu.gob.pe/web/validador.xhtml

Electronic document digitally signed within the framework of Law No. 27269, Law on Signatures and Digital Certificates, its Regulation and amendments. The integrity of the document and the authorship of the signature(s) can be verified at https://apps.firmaperu.gob.pe/web/validador.xhtml

The Rules on Financial Statements require that issuers with securities registered in the RPMV3 , prepare and present their financial statements with full observance of IFRS; for this purpose, issuers must follow each and every one of the principles of recognition, measurement and disclosure; as well as the criteria for presentation, consolidation and others established in the aforementioned international standards.

II. Statement of compliance

IAS 1 "Presentation of Financial Statements", paragraph 16, establishes that financial statements that comply with IFRS must include, in notes, an explicit and unreserved statement of such compliance.

According to said standard, an entity shall not state that its financial statements comply with IFRS unless they satisfy all the requirements of these.

In that sense, issuers that present to the Superintendency of the Securities Market - SMV financial statements that comply with IFRS, must present, in notes, the statement of compliance referred to in IAS 1.

III. Information on accounting policies

Article 10 of the Rules on Financial Statements and IAS 1 paragraph 10, establish the obligation for issuers to disclose in notes a summary of information on material or significant accounting policies and other explanatory information.

For the foregoing, considering the fundamental role played by IFRS in the quality and transparency of financial information disseminated to the market and the regulations mentioned in the preceding paragraphs, the annual and interim financial statements of issuers with securities registered in the RPMV must comply, fully, with the IFRS applicable to them, and present in notes an explicit and unreserved statement of such compliance. Likewise, they must disclose all the information required for a complete set of financial statements, and must comply with the requirements established in IAS 1, both for the form and for the content of said financial statements.

Finally, it should be specified that this Circular is issued with an orientative character and its purpose is to reiterate the obligations established in the current regulations, so that your represented entity fully complies with the obligations of preparation and presentation of information that

[3] In accordance with the provisions of Article 5, literal c), of the Organic Law of the SMV (approved by Decreto Ley N° 26126 and its amendments) and Article 33 of the Securities Market Law, Decreto Legislativo N°861 (approved by Decreto Supremo N° 020-2023-EF), the rules for the preparation and presentation of individual and consolidated financial statements and any other complementary information, as well as the supervision of compliance with such rules, do not reach entities that participate in the securities market and are under the competence of the Superintendencia de Banca, Seguros y Administradoras Privadas de Fondos de Pensiones, whose financial information is prepared and presented in accordance with the provisions established by said institution.

are enforceable against you, avoiding the responsibilities and administrative measures that may arise from your non-compliance.

Without further ado, I remain at your service.

Sincerely,

José Luis Salazar Marín
Intendente General (e)
General Superintendency of Conduct Supervision

Electronic document digitally signed within the framework of Ley N° 27269, Ley de Firmas y Certificados Digitales, its Regulations and amendments. The integrity of the document and the authorship of the signature(s) can be verified at https://apps.firmaperu.gob.pe/web/validador.xhtml