Brazil
| Extent of IFRS application | Status | Additional Information |
|---|---|---|
| IFRS Accounting Standards are required for domestic public companies | Required. | |
| IFRS Accounting Standards are permitted but not required for domestic public companies | ||
| IFRS Accounting Standards are required or permitted for listings by foreign companies | Required. | |
| The IFRS for SMEs Accounting Standard is required or permitted | Required. | |
| The IFRS for SMEs Accounting Standard is under consideration |
Profile last updated: 07 May 2026
RELEVANT JURISDICTIONAL AUTHORITY
Two organisations from Brazil responded to the survey:
1. | Comitê de Pronunciamentos Contábeis (CPC) (The Brazilian Accounting Pronouncements Committee) |
2. | Comissão de Valores Mobiliários (CVM) (Securities and Exchange Commission of Brazil) |
The CPC is the Brazilian standard-setting body engaged in the study, development and issuance of accounting standards, interpretations and guidance for Brazilian companies that comply with IFRS Accounting Standards issued by the International Accounting Standards Board (IASB). Its standards are enforced by the CVM for public entities and by the Conselho Federal de Contabilidade (CFC) (Federal Accounting Council) for non-public entities. Some other agencies enforce the relevant accounting pronouncements for their specific industries, such as financial institutions (Banco Central do Brasil (BCB)), insurance (Superintendência de Seguros Privados (SUSEP)), electric energy (Agência Nacional de Energia Elétrica (ANEEL)), transportation (Agência Nacional de Transportes Terrestres (ANTT)) and health insurance (Agência Nacional de Saúde Suplementar (ANS)).
CVM is the Brazilian government agency that regulates stock exchanges and over-the-counter markets.
COMMITMENT TO GLOBAL FINANCIAL REPORTING STANDARDS
Companies other than financial institutions:
Listed entities and companies registered with the CVM
IFRS Accounting Standards have been mandatory for the consolidated financial statements of companies, registered with the CVM, whose debt or equity securities trade in a public market for financial years ending 31 December 2010. Early application was permitted, beginning with financial years ending 31 December 2007. Unconsolidated separate company financial statements follow the accounting practices adopted in Brazil (BR GAAP), which were partially converged with IFRS Accounting Standards from 2008 to 2009 (transition period) and since 2014 have been fully converged with IFRS Accounting Standards.
This was laid out in RESOLUÇÃO CVM Nº 155, DE 23 DE JUNHO DE 2022.
Unlisted entities, not registered with the CVM
On 1 January 2008 changes were introduced in Corporate Law 11.638/07, setting the way to a process of accelerated convergence of BR GAAP to IFRS Accounting Standards. Full convergence with IFRS Accounting Standards was reached for financial reporting years ending on 31 December 2010 and onwards.
Non-publicly accountable enterprises (NPAEs) are required to prepare their financial statements in accordance with BR GAAP, but are permitted to adopt IFRS Accounting Standards for the consolidated financial statements. Small and medium-sized NPAEs are required to apply the Brazilian equivalent of the IFRS for SMEs Accounting Standard and may opt to apply full BR GAAP/IFRS Standards.
A large-sized entity is defined by Corporate Law 11.638/07 as a company or group of companies under common control whose total assets, in the previous year, amounted to over R$ 240 million (approximately US$ 50 million), or whose total gross annual revenues exceed R$ 300 million (approximately US$ 90 million). An entity that does not meet those thresholds is considered a small or medium-sized entity.
Financial institutions:
Financial institutions regulated by the Brazilian Central Bank (BACEN) that are either listed or are leaders of a prudential conglomerate classified in Segment 1 (S1), in Segment 2 (S2) or in Segment 3 (S3), according to specific regulations from CMN/Brazilian Central Bank (BCB), are required to prepare their consolidated financial statements in accordance with IFRS Accounting Standards.
Financial Institutions are classified in Segments (S1 to S5) based on the size of financial institutions in comparison with GDP. Statutory financial statements (separate or individual financial statements) are required to follow accounting practices adopted by the Brazilian Central Bank. Other financial institutions (that is, those that are not listed and are not classified as S1, S2 or S3) are not required to prepare financial statements that comply with IFRS Accounting Standards. However, if such a financial institution publishes consolidated financial statements complying with accounting practices adopted by the Brazilian Central Bank, then consolidated financial statements are also required. (art 10o. Resolution CMN 4818) (see RESOLUCAO N (bcb.gov.br))
As with financial institutions, listed insurance companies have to follow CVM regulations for their consolidated financial statements.
For their individual (separate company) financial statements, insurance companies have adopted BR GAAP from 2011 onwards with a transition date of 1 January 2011.
However, from 2011 onwards, SUSEP has made a few changes in relation to the CPCs issued. For example, it removed the deemed cost option at first time adoption and has included an option for companies to provide for credit losses based on expected losses (as opposed to incurred losses) for both the consolidated and separate company financial statements. Also, until this profile was updated, SUSEP had not yet approved the CPC equivalent of IFRS 17 Insurance Contracts. Therefore, only the consolidated financial statements of listed insurance companies are required to comply with IFRS 17.
Other general comments
Law 6.404/76 (Brazilian Corporate Act) was amended in December 2007 by Law 11.638/07 in order to require Brazilian Accounting Standards to comply with IFRS Accounting Standards.
In adopting IFRS Accounting Standards, Brazil has made some modifications to IFRS Accounting Standards that are described in the section on IFRS Endorsement later in this Profile.
Memorandum of Understanding
On 28 January 2010 the Brazilian Federal Council of Accounting and the Brazilian Accounting Pronouncements Committee signed a Memorandum of Understanding with the IASB that set the end of 2010 as the target date for full convergence with IFRS Standards and established a framework for future co‑operation between the organisations.
EXTENT OF IFRS APPLICATION
For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:
Required.
As described in the section on IFRS Endorsement later in this Profile, Brazil has removed some options permitted under IFRS Accounting Standards.
IFRS Standards are required for some financial institutions whose securities do not trade in a public market.
IFRS Accounting Standards are permitted for other companies whose securities do not trade in a public market. As the Brazilian accounting practices are converged with IFRS Accounting Standards, in practice there is dual compliance, although it might not be explicitly stated in the compliance statement.
For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:
According to the Resolução CVM 80/2022, all foreign companies whose securities are publicly traded in Brazil must submit financial statements prepared in accordance with IFRS Accounting Standards.
IFRS ENDORSEMENT
IFRS Accounting Standards as issued by the IASB, but some options have been removed, for example, the revaluation of property, plant and equipment under IAS 16 Property, Plant and Equipment and revaluation of intangible assets under IAS 38 Intangible Assets. Although these options are included in the accounting standards issued by the CPC, the Brazilian Corporate Act does not permit their application. Nonetheless, an entity can state compliance with IFRS Accounting Standards as issued by the IASB.
Yes, dual compliance is stated in the financial statements and auditor’s reports for entities registered with the CVM.
Some publicly traded companies are required by law to present both separate company financial statements (using the equity method for investments in subsidiaries) and consolidated financial statements (applying IFRS Accounting Standards as issued by the IASB).
The auditor’s opinions refer to compliance with both IFRS Accounting Standards and accounting practices adopted in Brazil, except for real estate entities, as explained later in the IFRS Endorsement section.
The CPC is responsible for translating new and amended IFRS Accounting Standards into Portuguese and submitting them to public hearing as part of CPC Pronouncements (standards). The public hearing is made in conjunction with CVM and CFC, which are the main regulators that endorse the amended or new CPCs. Once the process is complete, CPC issue the amended or new CPC and then CVM and CFC (and other regulators) endorse it.
Regulators, such as the Brazilian Securities Commission (CVM), the Brazilian Central Bank, and the insurance regulator, enforce the application of all or some of the CPC standards.
As a result, all entities are required to apply new or amended IFRS Accounting Standards at the same time.
Some accounting policy options have been removed, for example, the revaluation of property, plant and equipment under IAS 16 and revaluation of intangible assets under IAS 38.
Also, Brazil usually does not permit the early adoption of newly issued or amended IFRS Accounting Standards.
In determining the accounting for the recognition of revenue from contracts for the sale of unfinished real estate units under construction, Brazilian real estate development entities registered with the CVM are required to apply CVM Circular Letter No 02/2018, (Ofício-Circular CVM/SNC/SEP 02/18) rather than the requirements of paragraph 35 of IFRS 15 Revenue from Contracts with Customers. As allowed by the Brazilian Corporate Law, unlisted real estate entities usually follow the CVM Circular Letter in this regard.
The options in IAS 27 Separate Financial Statements to measure investments in subsidiaries, associates and joint ventures at cost or fair value have been removed. Consequently, the equity method is required for investments in subsidiaries, associates, and joint ventures in the separate financial statements.
TRANSLATION OF IFRS ACCOUNTING STANDARDS
APPLICATION OF THE IFRS FOR SMEs ACCOUNTING STANDARD
All small and medium-sized entities are allowed to use the IFRS for SMEs Accounting Standard unless they choose to use full IFRS Accounting Standards, with one exception: some micro entities (gross revenue less than R$4.8 million) and small entities (gross revenue from R$ 4.8 million up to R$ 78 million) are authorised to use a simplified set of accounting standards established under Resolutions CFC: 2021/NBCTG1001 and 2021/NBCTG1002, both issued 18 November 2021. Entities were required to apply the IFRS for SMEs Accounting Standard for years beginning on or after 1 January 2010.
See above for discussion on which entities qualify as small and medium-sized.
