We recommend therefore that any company investing in Argentina be well represented in the executive branch. It is noteworthy that a constitutional limit will force President Menem whose policies have been extremely favorable to foreign investment to step down in December of 1999. The Argentine Constitution guarantees non-Argentine citizens the same rights as Argentine citizens, including access to Argentine courts for the resolution of legal disputes. The laws of Argentina permit parties to international agreements to select the laws that will govern the interpretation and enforcement thereof, and such provisions are typically honored by Argentine courts. Argentine Foreign Investment Law also places foreign investors on an equal footing with local investors.
All investors enjoy the right to repatriate profits and capital at any time.
However, Argentina has developed and applies a comprehensive standard of constant-currency accounting and reporting which restates historical cost in accordance with changes in the official monthly index of wholesale prices. Financial statements are established by the Companies Law, the National Securities Commission, the Central Bank, the Superintendency of Insurance, and professional pronouncements. Required financial statements consist of the balance sheet, income statement, statement of changes to stockholders equity, statement of changes to working capital, notes, supplementary information, and the director s report. The general standard applicable to the valuation of assets is the current value basis, subject to the limitation of their recoverable value. Inventory in general must be valued at replacement, repurchase or reproduction cost at the time of valuation.