CONVERGENCE TO INTERNATIONAL GOVERNMENTAL ACCOUNTING STANDARDS: ANALYSIS AND COMPARISON OF CURRENT AND PROPOSED BRAZILIAN STANDARDS

Abstract

The Brazilian Public Sector Accounting procedures are experiencing deep transformations towards convergence to international standards. The Brazilian Technical Accounting Standard 16 (NBC T 16), issued by Brazilian Federal Accounting Board, was the cornerstone of this process. Furthermore, National Treasury Department’s decrees 749 and 751, both issued in 2009, updated by decrees 406 and 665, both issued in 2011, promoted substantial changes in Brazilian public sector financial statements. In this context, this article analyses the progress of these financial statements towards convergence to international standards. This analysis was based on a comparison between the structure of financial statements in current appendixes of Law 4320/64 and the new structures and contents prescribed by the National Treasury Department, considering also conceptual aspects related to Accounting Theory. Thus, it can be concluded that relevant advances were accomplished in the convergence process.