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Top 10 Accounting Headlines from South America

"Labor Courts in Brazil are very reluctant to accept the universal jurisdiction of the Bankruptcy Court in the case of labor claims of companies undergoing a judicial recovery plan. The Brazilian Federal Supreme Court confirmed the application of the Brazilian Bankruptcy Law in a leading case related to the acquisition by Gol of Varig´assets, ruling that the Bankruptcy Court has the authority to judge such claims."
Recent changes in Peruvian insolvency laws will now allow financial institutions and insurance company counterparties to close-out and net obligations under derivatives and repurchase agreements with Peruvian financial institutions or insurance companies which become subject to bankruptcy proceedings.
Law 11.638/07, which deals with the accounting aspects of Brazilian corporations (sociedades anônimas), is intended to bring Brazilian accounting concepts and principles into line with those adopted in developed economies, ensuring a more reliable picture of companies’ financial health.
Located in the heart of Central America with a population of approximately 6.8 million, El Salvador is the most densely populated country in the Americas. Its legal framework is derived from the Constitution of 1983.
Bankruptcy is thelegal situation in which a corporation may temporarily or permanently close,due to the impossibility of fulfilling its obligations.
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