Professional Documents
Culture Documents
Roundtable
April 28, 2000
Proposed Changes in the Corporate Law Accounting and Reporting Matters (1)
Main changes:
Cash flow as a basic financial statement;
Segment information disclosure;
Accounting records for compliance with tax or special
legislation adjusted for financial reporting;
Proposed Changes in the Corporate Law Accounting and Reporting Matters (2)
Leasing accounting;
Pension accounting;
Deferral of unrealized profits on intercompany
transactions;
Discounting of long-term receivable and payable;
Proposed Changes in the Corporate Law Accounting and Reporting Matters (3)
Income statement to reflect:
Prior year adjustment;
Extraordinary items;
Consolidation of subsidiaries, regardless of the current
30% limit;
Purchase accounting - assets and liabilities accounted
for at their fair values.
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Summary
1. Accounting profession and regulators need to resolve the
dual reporting practices
2. Changes in the corporate law need to be approved by the
Congress
3. Board of Directors (Audit Committee) and independent
auditors to improve communication.
4. Immediate creation of the Brazilian FASB to harmonize
accounting and auditing standards in Brazil (IASC/IFAC
guidelines as benchmarks).
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