TITLE: Brazil's Securities Commission Issues Resolution Updating Accounting Standards to International Benchmarks
BODY:
On April 14, 2026, the Comissão de Valores Mobiliários (CVM), Brazil's securities regulator, issued Resolution CVM 242, making mandatory the Technical Pronouncement Review Document No. 29, issued by the Accounting Pronouncements Committee (Comitê de Pronunciamentos Contábeis – CPC). The resolution aims to align Brazilian accounting standards with International Accounting Standards Board (IASB) requirements.
Resolution CVM 242 incorporates amendments approved by the IASB, including: Contracts Referencing Nature-dependent Electricity (amendments to IFRS 9 and IFRS 7); Annual Improvements to IFRS Accounting Standards Volume 11; and Amendments to the Classification and Measurement of Financial Instruments (amendments to IFRS 9 and IFRS 7). The resolution updates multiple CPC technical pronouncements, including CPC 03 (R2) on Cash Flow Statements, CPC 25 on Provisions and Contingent Liabilities, CPC 36 (R3) on Consolidated Statements, CPC 37 (R1) on Initial Adoption of International Accounting Standards, CPC 40 (R1) on Financial Instruments Disclosure, and CPC 48 on Financial Instruments. The resolution also makes targeted amendments to CPC 12 (R1) on Present Value Adjustments and CPC Guidance No. 10 on Carbon Credits and Decarbonisation Credits.
The CVM developed these updates following feedback received during public consultation SNC 03/2025, conducted jointly with the CPC and the Federal Accounting Council (Conselho Federal de Contabilidade – CFC). Resolution CVM 242 is effective immediately and applies to fiscal years beginning on or after January 1, 2026. The resolution was not subject to regulatory impact analysis under Decree 10.411.