• Register
Return to: Home > News > Standards > Language and bureaucracy challenges the adoption of IFRS in Brazil

Language and bureaucracy challenges the adoption of IFRS in Brazil

Brazilian accountants have recognised the benefits of 12 years of International Financial Reporting Standards (IFRS) as they have seen improvement and growth in the country's economy. However, language and bureaucracy have been highlighted as a main challenge for greater adoption of the international standards.

Thiago Santana, tax director at Crowe Horwath, said in a comment published on IBRACON (Institute of Independent Auditors in Brazil), that the adoption of IFRS since 2005 had helped the Brazilian economy to internationalise. He added that the adoption had also provided transparency and confidence to companies.

"However, we still have a barrier to overcome, which is the issue of language, but gradually this will be overcome," Sérgio Machado Approbato Júnior, director of the National Federation of Companies of Advice, Skills, Information and Research (Fenacon) said, as reported by IBRACON. Currently, only 5% of Brazil’s population speak a second language and less than 3% are fluent in English.

Zulmir Breda, technical vice president of the Federal Accounting Council (CFC) commented to IBRACON that bureaucracy was an other issue when it comes to IFRS adoption especially one that affects foreign prodessionals. "Foreign investors have a great need for accounting and a lot of concern about deadlines," he said. "What we need to do is reduce the bureaucracy, because it is very difficult for the foreign investor to understand this, and he does not want to take the risk.”

Top Content

    Addressing tax challenges and the digitisation of the economy

    As the economy becomes even more globalised through digital sources, the tax systems currently in place need to be scrutinised to examine whether they are still fit for current and emerging business models. Joe Pickard reports on the OECD’s approach to this issue.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.