BM&FBOVESPA hosted, on 28 January 2010, the signing of a Memorandum of Understanding between the International Accounting Standards Board (IASB), the Brazilian Federal Council of Accounting (CFC) and, the Brazilian Accounting Pronouncements Committee (CPC).
The partnership is an important step towards the insertion of Brazil in the international forum on the establishment and adoption of a set of accounting standards known as the IFRS (International Financial Reporting Standards).
Since only a handful of countries have signed memorandums with the IASB, such partnership demonstrates Brazil’s commitment towards global regulatory issues. The agreement’s objective is to expand the convergence to IFRS norms in Brazil and to also guarantee a greater participation of Brazilian companies in regulatory discussions.
About the IASB – The International Accounting Standards Board was established in 2001. It is the standard-setting body of the International Accounting Standards Committee (IASC) Foundation, an independent private sector, not-for-profit organisation. The IASB is committed to developing a single set of global accounting standards that provide transparent and comparable information in general purpose financial statements. In pursuit of this objective, the IASB conducts extensive public consultations and seeks the co-operation of international and national bodies around the world.
About the Brazilian Federal Council of Accounting (CFC) - The CFC was created in 1946 and is a quasi-governmental entity subject to the discipline of state bodies. Its objective is to promote the development of the accounting profession, emphasising its ethical aspects, service quality, and engaging in the registration and supervision of its members and accounting entities; its actions being ultimately directed towards the protection of society.
About the Brazilian Accounting Pronouncements Committee (CPC) – The CPC was created in 2005 and issues technical pronouncements, guidance, and interpretations, which must be endorsed by the applicable governmental entities and by the CFC in order to have legal effects. The CPC seeks the convergence of Brazilian accounting standards towards international standards. It was founded by the following entities: the Brazilian Association of Listed Companies (ABRASCA); the National Board of the Brazilian Association of Capital Market Analysts and Investment Professionals (APIMEC Nacional); BM&FBOVESPA; the Brazilian Federal Council of Accounting (CFC); the Foundation Institute for Research in Accounting, Finance and Actuarial Sciences (FIPECAFI); and the Institute of Independent Auditors of Brazil (IBRACON). The CPC is independent of its founding entities and its deliberations require a minimum of 2/3 of votes in favour of any proposal.
