Hoogervorst: Brazil embodies ideal IFRS adoption

LATIN AMERICAN and Caribbean countries have been urged to adopt international financial reporting standards by IASB chairman Hans Hoogervorst.

Addressing a conference in Sao Paolo, the former Dutch finance minister used Brazil as a “textbook example” of how best to implement global accounting standards.

Hoogervorst (pictured) praised the country’s full adoption and decision not to “tweak” the standards, saying this means global investors are “entirely comfortable” Brazilian companies’ financial statements.

“The risk premium associated with unfamiliar financial reporting requirements is eliminated, this reducing the cost of capital and attracting greater inward investment,” he continued.

Stressing his affinity with the region and university Latin American studies, Hoogervorst said Brazilian moves to engage more fully with the global economy got the country “back on its feet”, drawing parallels with international accounting standards.

The conference was held over two days and offered participants technical updates and an insight into the future work plan of the IASB.

Related reading

Fiona Westwood of Smith and Williamson.