On 1 February 2022, Circular Letter CVM/SNC/SEP 1/2022 was published with guidance to companies on the preparation of financial statements for the year 2021.
In addition to indicating changes related to previous letters and updated reference to current guidelines, the Letter dedicates a section to addressing the process of “professional judgment” by financial statement preparers and independent auditors, which would be “the application of the knowledge and experience acquired in the presence of facts and circumstances available to conclude as to the appropriate treatment of an economic event, having as a reference the applicable accounting standards and other relevant information, especially those related to the informational objectives to be achieved”.
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