With the advent of the international rules of accounting (IFRS - CPC), accounting has altered its focus, as well as its form of preparation. It is no longer oriented by the rules of the Secretariat of the Federal Revenue of Brazil (Receita Federal do Brasil – “RFB”) and instead follows the principles established by the IFRS, which is mandatory in Brazil by law (11.638/07).
Currently, in the practical scenario, we find at least two distinct accounting practices and formats: the Fiscal Accounting (which is related to the “RFB” Rules Directorate) and the Accounting governed by the CPC’s/IFRS (which meet the demands of the company’s partners, creditors, banks, clients, suppliers and others stakeholders). Both categories are mandatory and, in case they are not properly fulfilled, heavy penalties can be applied to the companies representatives.
It is possible to take great benefits from this segmentation. As opposed to the Fiscal Accounting system, the new Accounting system will, going forward, be a valuable tool that will assist company management with their strategic plans and activities.