On April 4, 2022, the Executive Branch published Decree No. 108/22, which basically establishes that:
- Those entities that, according to the appropriate accounting standards in Uruguay, have a functional currency other than the national currency, must present their financial statements in both currencies.
- The financial statements presented in the functional currency, if it were different from the national currency, must always be accompanied by the financial statements presented in the national currency and will be the ones that, jointly, must be submitted for the approval of the partners or shareholders. Of the entity; for these purposes they may be presented in a single body or in separate bodies.
- For the purposes of the provisions of Law No. 16,060, the financial statements that must be considered are the financial statements presented in the functional currency, the currency in which they were prepared.
- The entities included in the provisions established by Decree No. 291/014 and other complementary and concordant regulations, must present the components of equity grouped in the following chapters:
Analysis EY Uruguay
Integrated capital: Corresponds to the amount of capital issued by the entity, subject to its legal form, such as shares and partnership interests.
Contributions to capitalize: It will correspond to that paid-in capital in process that has not been capitalized because it exceeds the amount of the contractual capital to date, which is in the process of being increased, after its approval by the competent corporate body. Irrevocable capital contributions will also be considered included in this chapter, as provided for in current legal and regulatory standards.
Issue premiums: They will correspond to those issue premiums or discounts (negative premiums) constituted in accordance with the provisions of article 297 of Law No. 16,060.
Own shares in portfolio: They will correspond to the shares issued by the entity itself, and that have been acquired by the entity itself, within the hypotheses and conditions established by article 314 of Law No. 16,060.
Other reserves: Will correspond to those reserves that do not constitute profit reserves. Other reserves or other components of equity therefore correspond to those items from other comprehensive income and those derived from transactions carried out between the entity and its partners or shareholders, typical of its status as such. Each of these reserves, according to its nature, must be presented on separate lines.
Profit reserves: They will correspond to those profits withheld in the entity by the express will of the company or by legal or contractual provisions. Each of these reserves, according to its nature, must be presented on separate lines.
Accumulated results: They will correspond to the accumulated gains without specific assignment or to the accumulated losses, as the case may be. They must be presented on separate lines, depending on whether they come from previous years or from the year or period itself.
In the event that profits or profits have been distributed in advance, they must be presented deducted from the profits or profits of the fiscal year or period.
Those entities that have a functional currency other than the national currency, must present in separate lines, within the respective chapters, the effects of the conversion from the functional currency to the presentation currency (national currency), provided for in numerals 38 and following of IAS 21 or in numerals 30.17 and following of the IFRS for SMEs, as the case may be. The translation results or exchange differences resulting from the conversion from the functional currency to the presentation currency of the results of the same fiscal year or period must be recognized as other comprehensive income for the fiscal year and in the immediately following fiscal year they will be transferred to accumulated results. .
- The entities included in the scope of Decree No. 124/011, may choose, in application of the provisions included in this regulatory standard, to follow the presentation criteria established in paragraph d).
- This Decree will be valid for fiscal years beginning on or after January 1, 2022 and its early application is permitted.