Brazil Securities Commission mandates CPC Review Document 29 for listed companies applying from 1 January 2026

The Brazil Securities Commission (CVM) issued Resolution 242 making the Accounting Pronouncements Committee’s (CPC) Technical Pronouncements Review Document No. 29 mandatory for listed companies, updating Brazilian accounting pronouncements to align with International Accounting Standards Board (IASB) standards. The resolution is already in force and applies to financial years starting on or after 1 January 2026. The update incorporates IASB changes on contracts referencing nature-dependent electricity, classification and measurement of financial instruments, and Annual Improvements to IFRS Accounting Standards Volume 11, including amendments to IFRS 9 and IFRS 7. It amends 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: Disclosure, and CPC 48 Financial Instruments, and also makes targeted adjustments to CPC 12 (R1) Present Value Adjustment and CPC Guidance No. 10 on carbon credits, emission allowances and Decarbonization Credits (CBIO) without changing companies’ existing practices. CVM linked the changes to feedback received through Public Consultation SNC 03/2025 conducted with the CPC and the Federal Accounting Council (CFC), and it did not submit the measure to a Regulatory Impact Analysis under Decree 10.411/2020.