The Central Bank of Brazil has launched a consultation on updating the accounting rules for financial institutions and other authorized institutions to align its Accounting Standard for Institutions Regulated by the Central Bank of Brazil, known as Cosif, more closely with IFRS 18. The proposal would introduce clearer principles for aggregating and disaggregating financial information, a more standardized income statement and disclosure requirements for management defined performance measures. Institutions would assess and disclose whether their main business activities involve investing in assets or providing financing to customers. Income and expenses would then be classified into five categories: operating, investing, financing, income taxes and discontinued operations. The income statement would also include five mandatory subtotals, including operating profit or loss and profit or loss before financing and income taxes. Management defined performance measures would require disclosures covering their calculation, usefulness and reconciliation to reported accounting figures. The proposed rules would apply to financial statements for periods ending on or after Dec. 31, 2027, with early adoption permitted in half-year financial statements for that year.
2026-09-22Central Bank of Brazil
Central Bank of Brazil consults on accounting changes aligned with IFRS 18 for periods ending from December 2027
The Central Bank of Brazil is consulting on accounting changes that would align Cosif more closely with IFRS 18 and standardize financial statement presentation. The proposal introduces five income and expense categories, mandatory income statement subtotals and disclosure requirements for management defined performance measures. The rules would apply to periods ending on or after Dec. 31, 2027, with early adoption permitted in 2027 half-year statements.