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Brazil adopts the IFRS for SMEs

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  • IFRS for SMEs (mid blue) Image

22 Mar 2010

In December 2009, the Brazilian Accounting Pronouncements Committee (CPC) adopted a Portuguese version of the IFRS for SMEs as an option for SMEs in Brazil.

By Resolution 1255 of 2009, the CPC's SME standard was endorsed by the Brazilian Federal Accounting Council (CFC), the national professional body. (Here is a copy of Resolution 1225 (PDF 794k)). The standard is a temporary and unofficial translation of the IFRS for SMEs that is available on IASPlus (PDF 1,049k). The IASC Foundation is presently organising an official translation. It is anticipated that auditors will be able to report that financial statements that comply with the CPC's SME standard are in conformity with the IFRS for SMEs because there are no substantive differences between the unofficial Portuguese translation and the IFRS for SMEs. The estimated number of SMEs in Brazil (January 2009) was 5.9 million, representing 99% of Brazilian enterprises. While many of them are expected to continue to follow a very simple accounting system permitted under the Brazilian SMEs law, many others are expected to switch to the Brazilian IFRS for SMEs equivalent. For example, the Brazilian National Development Bank (BNDES) is expected to encourage or even require all of its borrowers (approximately 250,000 SMEs) to use the new standard.

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