Background

Brazilian Accounting Pronouncements Committee (CPC) is the Brazilian standard-setting body engaged in the study, development and issuance of accounting standards, interpretations and guidance for Brazilian companies. Its rules are enforced by the CVM (Securities and Exchange Commission of Brazil) for public entities and by the Conselho Federal de Contabilidade (CFC) for non-public entities.

Accounting Standards

Brazil has already adopted IFRS Standards for all companies whose securities are publicly traded and for most financial institutions whose securities are not publicly traded, for both consolidated and separate (individual) company financial statements.

Non-Publicly Accountable Enterprises (NPAEs) are obliged to prepare their financial statements in accordance with Brazilian Generally Accepted Accounting Principles, which have been fully converged with IFRS Standards since 2010, but are permitted to adopt IFRS Standards for the consolidated financial statements. Small and medium sized NPAEs are required to apply the Brazilian equivalent of the IFRS for SMEs Standard and may opt to apply full BR GAAP/IFRS Standards.

Sustainability Disclosure Standards

Brazil has adopted CBPS Standards: CBPS 01 and CBPS 02, which are the Portuguese translations of IFRS S1and S2, respectively.

These local standards were developed by the jurisdiction’s national standard-setter, the Brazilian Sustainability Pronouncements Committee (CBPS, in Portuguese) and their mandatory application is determined through a series of Resolutions published by several authorities that regulate specific segments of Brazil’s financial markets including: Securities and Exchange Commission (CVM); National Monetary Council (CMN); Brazilian Central Bank (BCB).

*The information above has been translated and compiled from publicly available sources, including the official websites of relevant institutions and the website of IFRS.