The Brazil Securities Commission (CVM) has opened a public consultation on a draft regulation that would replace CVM Resolution 106 and require listed companies to apply CPC Technical Pronouncement 51, Presentation and Disclosure in Financial Statements. The rule would enter into force on 1 January 2027 and apply to financial years starting on or after that date. Under CPC 51, presentation requirements would be updated in particular for the statement of profit or loss, including classification of income and expenses into operating, investing, financing, income taxes and discontinued operations. The draft also requires note disclosure of management-defined performance measures used in public communications, and introduces new principles for aggregating and disaggregating information in the financial statements and notes. CPC 51 is aligned with IFRS 18 and would replace CPC 26 (R1) following the IASB’s revisions, while incorporating Brazil-specific adaptations that do not create misalignment with IFRS 18. Comments can be submitted until 12 September 2025. CVM indicated that no regulatory impact analysis was performed, citing an exemption under Decree 10.411/20.
Brazil Securities Commission (CVM) 2025-07-14
Brazil Securities Commission launches consultation on draft rule to mandate CPC 51 financial statement presentation aligned with IFRS 18
The Brazil Securities Commission (CVM) has launched a public consultation on a draft regulation to replace CVM Resolution 106, requiring listed companies to adopt CPC Technical Pronouncement 51 for financial statement presentation and disclosure from 1 January 2027. CPC 51 updates presentation requirements, including income and expense classification, aligning with IFRS 18 while incorporating Brazil-specific adaptations. No regulatory impact analysis was conducted due to an exemption under Decree 10.411/20.