IFRSs in Brazil
On 28 January 2010 the Brazilian Federal Council of Accounting and the Brazilian Accounting Pronouncements Committee signed a Memorandum of Understanding (MoU) with the IASB that sets end-2010 as the target date for full convergence with IFRSs and establishes a framework for future co-operation between the organisations.
The move towards convergence with IFRSs was initiated by the Brazilian Central Bank, reflecting its view of the importance of a single set of international financial reporting standards in use around the world, and the benefits of such standards for the Brazilian economy. In 2006 the Bank announced that financial institutions under its supervision should comply with IFRSs from December 2010 in their consolidated financial statements. In 2007 the Brazilian Securities Commission and the Brazilian Insurance Supervisor issued similar rulings. These developments were followed by a decision of the Brazilian congress to approve a law requiring the progressive convergence of Brazilian GAAP with IFRSs for the individual accounts of all listed companies and for-profit large enterprises from 2008.
The MoU commits the signatories to using their best endeavours to secure the necessary regulatory endorsement for convergence and looks forward to Brazil's acceptance of the IFRS for SMEs. It also aims to foster Brazilian participation in international standard-setting by greater involvement in the early phases of IASB projects, thereby paving the way for speedier acceptance and adoption of IFRSs in Brazil, and facilitating their proper implementation.