CFC Informa nº 413 - CFC approves standard on Integrated Reporting: CTG 09.

The Plenary of the Federal Accounting Council (CFC) approved, on Thursday (26), the General Technical Communication (CTG) 09 - Integrated Report. This initiative meets a need in the Brazilian market regarding the standardization of reports that meet the themes of the Environmental, Social and Corporate Governance (ESG) agenda. The adoption of the standard, however, does not require the preparation of the Integrated Report, but makes it a reference as a methodology for integrating financial and non-financial information.

“We have to keep in mind that sustainability issues and the impacts they cause on investments and business are not a trend or a fad. This is a central issue for companies, investors and society, and all information needs to be expressed in a comprehensive and standardized report ”, says CFC president, Zulmir Breda.

CTG 09 was approved after due process, which had a joint public hearing by the CFC with the Accounting Pronouncements Committee (CPC) and the Securities and Exchange Commission (CVM) - OCPC 09 draft - and received suggestions in the period from September 26 to October 26 this year.

Among the objectives of the Technical Communication are to improve the quality of information available to investors and other stakeholders ; promoting a more cohesive and efficient approach to corporate reporting; and, among others, the improvement of accountability and accountability for the management of the comprehensive capital base - financial, manufactured, intellectual, human, social, relationship and natural.

CTG 09 contains four chapters, divided into two sets: in part I - Introduction, there are items on the Use of Guidance and on Fundamental Concepts; and, in part II - The Integrated Report, there are Guiding Principles and Content Elements.

The statement is related to the RI Conceptual Framework ( framework ), prepared by the International Integrated Reporting Council (IIRC), a global organization that emerged from collaboration between regulators, investors, supervisory bodies, accounting professionals, companies and non-governmental organizations (NGOs). The IIRC is currently in a coalition phase with the Sustainability Accounting Standards Board (Sasb).

The approved standard will be published in the DOU shortly, coming into force on the same date.

Audience: main points

According to a report by the CFC Technical Chamber, there was an effective participation of entities representing companies and individuals in the public consultation.

Among the main comments received at the public hearing, there was a question about the opportunity to approve the draft OCPC 09 now, since discussions are being held, at an international level, especially by the IFRS Foundation, on the ESG Sustainability Report.

On this issue, the assessment of the Accounting Pronouncements Committee, with which the CFC Technical Chamber agreed, was that the IFRS Foundation's process is still in its initial stage, seeking opinions on whether or not the organization should issue a statement. standard regarding the sustainability report, among other questions. “This situation should require a long period of time to be concluded, therefore, it does not constitute an impediment to the approval of OCPC 09 - Integrated Reporting”, stated in the report of the hearing.

Another comment from the OCPC 09 audience suggested waiting for the result of the review process for the framework of the Integrated Reporting, in the public consultation phase, promoted by the International Integrated Reporting Council (IIRC). The understanding of this, as expressed in the report, was that, when the revision by the issuing body of the RI framework is approved, the necessary version of the Brazilian version of the Integrated Report will be proceeded, remaining in uniformity with the IIRC standards.

The non-mandatory use of the RI framework was also suggested, but this prediction had already been agreed between the entities that make up the CPC.

Also, according to the CFC Technical Chamber, the intention of the Federal Accounting Council is the non-compulsory adoption of this standard, but if the term Integrated Reporting is adopted, its guidelines must be followed.

“It should also be clear that the CFC will not interfere with the requirements of other regulatory bodies that, eventually, decide to require the adoption of the Integrated Reporting methodology”, records the document.