CReCER

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CReCER Regional Conference

• Challenges and Benefits
• in adopting IFRS

Fernando Alves 13 June 2007
PwC
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World Bank View

• Stabilization and growth above historical
  averages
• Sustaining economic progress depends on the
  ability to develop regions private sector and
  reduce financial sector vulnerability
• Broad range of efforts to improve access to
  credit and long term capital
• Need to align the regions business standards
  with those of its main trading partners,
  especially industrialized nations
• Harmonizing financial reporting and governance
  arrangements with internationally recognized good
  practices enhances transparency and fosters
  market efficiency and discipline

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IFAC View

• Need of improvement in the quality of financial
  reporting
• Identification of actions to strengthen the
  activities of those who participate in the
  financial reporting supply chain activities
  that are essential to supporting economic growth
  and development in Latin America

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With this background in mind, this panel is
intended to discuss the benefits and challenges
of adopting IFRS in the Region

• Benefits What are the benefits? How can these
  benefits be materialized in the region?
• Challenges What are the challenges? How can they
  be overcome?

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Debate

• Debate

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• Closing remarks

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Challenges in adopting IFRS in the Region

• Cultural barriers Accepting that an
  international framework could replace a domestic
  one.
• Adopt instead of Adapt.
• Costs of implementation of a more sophisticated
  GAAP.
• Education preparers, auditors, analysts,
  regulators.
• Consistent application and interpretation
• Tax-driven accounting.

A regional and comprehensive approach towards
the overcoming of these challenges is crucial
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Benefits of adopting IFRS in Latin America and
Caribbean Region

• Comparability
• Enhancement of trust
• Increased transparency and attraction of more
  investments
• Reduction of capital cost
• Broader access to global capital markets
• Reduction of the cost of cross-border
  transactions
• Promotion of efficient transnational evaluation

A more competitive and sustainable business
environment conducive to economic growth
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• THANK YOU!

PwC