The Brazilian Securities and Exchange Commission (CVM) has launched a consultation on the phased alignment of investment fund accounting rules with International Financial Reporting Standards (IFRS). The first phase would migrate the requirements in CVM Instructions 489, 516 and 579 and the funds covered by Normative Annexes VIII, X and XII of CVM Resolution 175, based on full adoption of Accounting Pronouncements Committee standards without divergences from IFRS. The CVM is seeking input on operational challenges, financial statement comparability, independent audit procedures, adaptation costs and benefits for investors and other users. It also requests proposals for changes to its information receipt systems to improve the accessibility, transparency and usability of fund data. Funds covered by Normative Annex VI, including investment funds in agro-industrial production chains, are excluded because they already follow the IFRS-converged accounting framework applicable to listed companies. The feedback will inform a proposed rule that the CVM plans to submit to a further public consultation.

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