Divergences between the BR GAAP and US GAAP

12 de setembro de 2011

Divergences between the BR GAAP and US GAAP

by Ilse Maria Beuren,

Roberto Carlos Klann

One of the challenges faced by regulatory accounting agencies worldwide is how to reduce or even eliminate the asymmetry of information evidenced in reports produced

according to the standards of different countries.

Various international agencies like the International Accounting Standards Board (IASB), the International Federation of Accountants (IFAC), the United Nations Conference on Trade and Development (UNCTAD) and the International Organization of Securities Commission (IOSCO) have made an effort to develop high quality international accounting standards. In doing so, they seek to promote the convergence of various local standards into an international harmonization on accounting. The ‘international financial reporting standards’ (IFRS) are rapidly gaining worldwide acceptance. In January 2005, approximately 7,000 companies listed with the European Union converted their statements to the IFRS requirements (Cummings; Brannen, 2005). Approximately, 113 countries around the world currently require or permit IFRS reporting for domestic listed companies (International Accounting Standard Board – IASB, 2009).

In the United States, the ‘securities and exchange commission’ was voted in August 27th, 2008 to publish for public comment a proposed ‘roadmap’ that could lead to the use of IFRS by U.S. issuers beginning in 2014. The ‘commission’ would make a decision in 2011 on whether adoption of IFRS is in the public interest and would benefit investors (U.S. Securities and Exchange Commission - SEC). In November 14th, 2008, the ‘commission’ proposed a ‘roadmap’ for the potential use of financial statements prepared in accordance with IFRS as issued by the IASB by U.S. issuers (U.S. Securities and Exchange Commission - SEC).

In Brazil, the efforts of the ‘committee on accounting pronouncement’ (CPC), has contributed to the convergence process of Brazilian accounting standards with the international accounting standards of the IASB. The CPC is made up of representatives from the ‘Brazilian association of publicly owned companies’ (ABRASCA), the ‘association of analysts and professionals from the capital investments market’ (APIMEC), the São Paulo stock exchange (BOVESPA), the ‘federal accounting council’ (CFC), the ‘foundation institute of accounting, actuarial and financial research’ (FIPECAFI) and the ‘institute of independent auditors of Brazil’ (IBRACON).