CPC 51 / IFRS 18: what changes in how companies present performance from 2027?

For fiscal years beginning on or after January 1, 2027, CPC 51, the Brazilian version of IFRS 18, replaces CPC 26 (R1) and will guide how companies present and disclose their financial statements. For publicly held companies, the requirement was established by CVM Resolution 237/2025, issued by Brazil's securities regulator.

Recognition and measurement rules remain the same, and profit for the period generally does not change. What changes is how information is organized, with a direct effect on how the board, investors and banks read the company's performance.

An income statement with defined categories

Income and expenses are now classified into five categories:

• operating;

• investing;

• financing;

• income taxes;

• discontinued operations.

The income statement gains two required subtotals: operating profit and profit before financing and income taxes. This makes it easier to compare different companies.

Classification depends on each business's main activities. A company that invests in assets or provides financing to customers as part of its operations may classify these results differently from a manufacturer or a retailer, and this analysis needs to be done case by case.

Management metrics move into the notes

Metrics used in market communications, such as adjusted EBITDA, are now treated as management-defined performance measures. When disclosed publicly, these measures must be presented in a note to the financial statements, with a reconciliation to the closest subtotal required by the standard and the effect of each adjustment. Because they appear in the notes, they also fall within the scope of the audit.

The standard also provides clearer criteria for aggregating and disaggregating information, which reduces the room for generic line items such as "other expenses."

The impact reaches processes and systems

The chart of accounts and the mapping used in the ERP and in consolidation will need to reflect the new categories. The 2027 financial statements will present 2026 figures reclassified for comparison, so the current fiscal year is already part of the transition.

Outside accounting, financing agreements with covenants (clauses tied to financial indicators), board reports and investor materials may also need to be reviewed.

How VBR supports this transition

VBR supports the adoption of CPC 51 with its audit and Finance & Accounting Advisory teams working together. This support includes assessing the impact, reviewing account classification and preparing the comparative financial statements.

If your company has already started assessing these effects or still needs to size the work involved, contact VBR's team through the link in our bio or via our institutional website.