CRITERIA FOR PRESENTATION OF FINANCIAL STATEMENTS – RNC REGISTRATION AND ENABLEMENT

A Ruling that Regulates the Criteria for Presentation of Financial Statements as a requirement for registration with and enablement at the National Registry of Contractors( Registro Nacional de Contratistas (RNC) (the “Ruling”), issued by the Central Planning Commission of the National Service of Contracting (Servicio Nacional de Contrataciones), was published in Official Gazette No. 41.796 of January 9, 2020.

The Ruling states that after year 2016, the loading of the Financial Information of both natural and legal persons has been made at Historical Values, by reason of the lack of publication of the National Consumer Price Index (CPI) by the Venezuelan Central Bank (VCB); then, the loading of information for year 2018 will be made in the same way for purposes of the RNC registration and enablement. In the case of the 2019 Enabling process, the Financial Information will not be required at Up-to-date-Values, that is, restated.

The Ruling provides that the legal persons the fiscal years of which end on a date other than December 31 must file their financial statements during 2019 at historical values.

Should the CPI continues to be regularly published, the financial information of the end of fiscal year 2019 will be loaded at up-to-date values and in accordance with the Generally Accepted Accounting Standards, for the 2020 Enabling Process.

In the case of natural persons and socioproductive organizations, they must file their financial statements at historical values. In the case of insurance companies, for purposes of their enablement, they will abide by the Special Provisions that govern the same.

The Ruling will become effective as from June 1, 2019.

In order to access the Decree, please click here.

Should you have any questions or comments or require further information, please contact the partner in charge of your account via email.