Brazil Securities Commission requires listed companies to apply CPC Review Document 29 incorporating IASB accounting amendments from 2026 financial years

Brazil Securities Commission (CVM) issued Resolution CVM 242 requiring publicly held companies to apply Technical Pronouncements Review Document No. 29 issued by the Accounting Pronouncements Committee (CPC), updating Brazilian accounting requirements to align with International Accounting Standards Board (IASB) standards. The package incorporates IASB changes including Contracts Referencing Nature-dependent Electricity, Annual Improvements to IFRS Accounting Standards Volume 11, and amendments to the classification and measurement of financial instruments affecting IFRS 9 and IFRS 7. It updates CPC 03 (R2) Statement of Cash Flows, CPC 25 Provisions Contingent Liabilities and Contingent Assets, CPC 36 (R3) Consolidated Financial Statements, CPC 37 (R1) First-time Adoption of International Accounting Standards, CPC 40 (R1) Financial Instruments Disclosures, and CPC 48 Financial Instruments, and makes limited amendments to CPC 12 (R1) Present Value Adjustment and Guidance CPC No. 10 under CVM Resolution 223 on carbon credits, emission allowances and decarbonization credits (CBIO), without changing any accounting practice already adopted by companies. The rule is already in force and applies to financial years beginning on or after 1 January 2026. CVM links the changes to feedback received through Public Consultation SNC 03/2025 conducted with the CPC and the Federal Accounting Council (CFC), and states the measure was not submitted to a Regulatory Impact Analysis under Decree 10.411.