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.”
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