The Offices of the Superintendents of Corporate Relations (SEP) and Accounting and Audit Rules (SNC) of the Brazilian Securities and Exchange Commission (CVM) published, on January 12th, the Official Letter 1/17. The topics are based on the red flags and information identified and obtained by the technical areas regarding operations structured by the market during the period.
The document brings SEP’s understanding about the appropriate accounting representation of an economic event reflected in the companies’ accounting statements.
The Official Letter provides investor relations officers and independent auditors with guidance on important points that must be observed in the preparing of Accounting Statements for the period ended in 12/31/16. The document addresses:
- True and fair view;
- Forfaiting operations;
- FIP – Private Equity Investment Funds – Operations;
- FIDC – Fund of Investment in Receivables – Operations;
- Impairment Tests – CPC No. 1.
- Financial Statements – Explanatory Notes;
- Financial Instruments;
- Recognition of Income – POC: IFRS No. 15 x IFRIC No. 15.
- Business Mix;
- Changes in accounting practices.