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SPECIAL
FOCUS
Reform of the accounting rules in the Law of Corporations requires publication of financial statements
São Paulo, January 28, 2008
At the end of last year, Law 11,638 of September 28, 2007 took effect, updating the accounting rules contained in Brazil’s Law of Corporations (Lei das Sociedades Anônimas, or LSA - Law 6404/76). This reform was accomplished by amending Chapter XV, which contain provisions on preparation of financial statements by companies that are subject to that law.
The change in accounting rules comes precisely at a time when the
federal government is suffering a considerable loss of revenue with
the end of the CPMF levy (provisional contribution on checks and
other bank withdrawals/transfers). There is no doubt that the reform
will wind up, albeit indirectly, helping tax collection. In this
respect, one of the key measures is extension of the LSA’s rules
on bookkeeping to all “large enterprises” (“empresas de grande porte”,
or EGPs), even if not organized as corporations. These are defined
in Art. 3, sole paragraph, of the new law, as any firm or group
of firms under common control with net assets in the preceding year
of more than R$ 240 million or gross revenue of over R$ 300 million. ...
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Foreign Investment:
THE EFFECT OF SEC NEW RULE FOR ACCEPTANCE OF FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH IFRS ON BRAZIL
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