Puerto Rico Accounting Laws in Puerto Rico Essay

Puerto Rico

Accounting Laws in Puerto Rico

Roger Stein

The Rovira Biscuit company has been a mainstay in the Puerto Rican snack market for more than 80 years. First established in 1929, the company specializes in a wide range of cookies, crackers and other comestibles that have continue to be enjoyed by Puerto Rican consumers even to present day. Additionally, Rovira is a company which continues to push forward, striving for additions to its already extensive product line, working to improve packaging and varying its delivery to satisfy the demands of an increasingly diverse cross-section of customers. According to Rovira (2013), "our constant growth during the past seven decades attests to the success of our commitment to customer service. Presently the 4th generation of the Rovira family, together with a highly qualified professional staff, looks into taking the business to the next generation of demanding consumers with new and exciting product ideas." (Rovira Biscuits, p. 1)

In spite of its success, Rovira is currently seeking to establish a new longterm relationship with an accountancy firm. Rovira intends to forge a partnership with a third-party accounting firm from which several accounting professionals may be dispatched. The intention is to establish an internal accounting department which is overseen by this outsourced personnel. However, it has been several decades since Rovira has sought a change in its accounting strategy. In light of this, a number of laws and regulations are likely to have shifted or changed altogether in the ensuing time. Accordingly, it is critical for Rovira to acknowledge these laws and make intelligent and informed decisions moving forward with its accounting strategy.Relevant Accounting Laws:

First at foremost, it bears noting that many of the legal specificities that define accounting in Puerto Rico extend from its relationship with the United States. As a territory of the U.S., Puerto Rico's accounting professionals are beholden to many of the same laws and regulations that are in action on the mainland continent. For instance, accountants are expected to meet the conditions put forth by the National Association of State Boards of Accountancy (NASBA) in establishing individual qualifications. According to the NASBA, the serving accountant must both be a citizen of the United States and "must be a resident, have a place of business or be employed in the Commonwealth of Puerto Rico." (NASBA, p. 1)

The NASBA grants licensed to qualified and already licensed CPAs with the aim of creating unifying standards for accountancy boards across 50 states and 5 territories. In addition to serving as an agency aimed at refining accounting rules, regulations and standards, the NASBA serves the interest of validating the legal qualifications of practicing CPAs.

According to the NASBA, one major consideration for Rovira if it does desire to adhere to the conditions put forth by the agency, is the importance of hiring domestic personnel for its accountancy positions. According to the NASBA, "Applicants who obtained their education outside the United States must have their transcripts evaluated by one….....