When Audit Requires It: The Strategic Importance of CPC 27 in Asset Management
In the world of corporate governance, transparency and compliance are no longer optional—they are indispensable pillars that support sustainable growth and investor confidence. Among the many standards that guide financial reporting in Brazil, one has gained increasing attention, especially from auditing firms, including the Big Four (PwC, Deloitte, EY, KPMG): CPC 27 – Ativo Imobilizado.
If your company has already been audited or is in the process of preparing for a financial audit, you’ve likely encountered questions such as:
“When was the last full inventory of your fixed assets?”
“How was the useful life of the assets determined?”
“Do the depreciation expenses reflect reality?”
These questions stem directly from the requirements of CPC 27, a technical standard that governs how fixed assets (Property, Plant and Equipment – PPE) must be recorded, valued, and reported.
This article will show you not only why CPC 27 matters, but also how a specialized consultancy can turn a compliance obligation into a strategic advantage.
Why Auditors Insist on CPC 27 Compliance
Large auditing firms—especially the Big Four—have intensified their scrutiny over the Fixed Asset Management processes of the companies they audit. This is no coincidence.
CPC 27 (aligned with IAS 16 from the International Financial Reporting Standards – IFRS) determines the proper recognition, measurement, depreciation, and disclosure of tangible assets held by a company for the production of goods, services, rentals, or administrative use.
When companies fail to demonstrate compliance with CPC 27, they risk receiving qualified audit opinions, delays in closing balance sheets, and even legal or tax complications.
Therefore, it is no longer acceptable for companies to manage their fixed assets through incomplete spreadsheets, outdated records, or unvalidated depreciation rates. A professional and audit-ready Fixed Asset Management system is now an essential part of a company’s financial architecture.
Summary of What CPC 27 Requires
Let’s break down the core requirements of CPC 27 and understand the operational implications for your business:
1. Inventory of Fixed Assets (Inventário do Ativo Imobilizado)
A full physical inventory (or “asset sweep”) must be carried out to identify and register every asset owned by the company. This includes detailed labeling (tags with QR code or barcode), location, responsible department, condition, and photographic documentation.
🔍 "The physical presence and usability of each asset must be verifiable."
2. Analysis and Consolidation of Accounting Records
This is where the physical data collected is matched with accounting data. It ensures that what is in the field is also on the books and vice-versa. Assets without a physical match (excess) or without accounting records (shortages) are identified for correction.
3. Physical x Accounting Reconciliation (Conciliação Físico x Contábil)
This critical step bridges the gap between what is real and what is reported. It is often here that inconsistencies emerge, which may indicate improper write-offs, capitalization errors, or assets being used by third parties without control.
🧾 "Reconciliation supports true and fair financial statements."
4. Balance Sheet Adjustments (Ajustes no Balanço Patrimonial)
Once reconciliation is done, the adjustments to the balance sheet are recommended—writing off unusable assets, reclassifying active items, correcting depreciation schedules, and updating the overall value of the asset base.
5. Reality-based Financial Information
The goal of CPC 27 is that the numbers in the balance sheet faithfully represent the actual state of the assets. This prevents distorted depreciation, incorrect net book values, and potential overvaluation of the company.
6. Determination of Remaining Useful Life (Vida Útil Remanescente)
Each asset must be reviewed to determine how long it will remain useful for the company. This review should consider technical conditions, wear and tear, and planned obsolescence.
📉 "Useful life is not fixed; it must be reassessed periodically."
7. Definition of Residual Value (Valor Residual)
CPC 27 requires the establishment of a residual value—the estimated value of the asset at the end of its useful life. This directly impacts depreciation calculations and future projections.
8. Periodic Review and Update
One-time inventories are not enough. Companies must implement recurring reviews to maintain data quality, especially in dynamic environments where assets are frequently moved, replaced, or upgraded.
🔁 "A rolling asset review keeps the company audit-ready year-round."
9. Clear Procedures Aligned with Reality
CPC 27 is not just about compliance—it’s about adapting processes to the company’s reality. A well-documented and customized asset management procedure facilitates integration with ERP systems, internal controls, and reporting routines.
Why You Need a Specialist in Fixed Assets
Given the complexity and technical nature of CPC 27, many companies struggle to execute it internally. The lack of experience, time, and specialized tools often results in incomplete or inaccurate compliance.
That’s where a specialized consultancy makes the difference.
✅ AXS Consultoria Empresarial has been helping companies across Brazil meet and exceed the demands of CPC 27.
We are not generalists—we are experts in Fixed Asset Management and Valuation. We offer a complete range of services:
- Physical inventory (tagging, photographing, geolocation)
- Physical x accounting reconciliation
- Depreciation and useful life recalculation
- Residual value review
- Support for audit validation
- Generation of reports and executive dashboards
- Compliance with CPC 27, CPC 01, IBAPE, ABNT and IFRS standards
- Validated by Big Four audit firms
Case Highlights: Clients Who Trust AXS
AXS Consultoria Empresarial has delivered successful asset management and valuation projects for dozens of companies, including:
- Midea Carrier (industrial plants)
- CPQD Campinas (R&D center in telecom)
- Vinci Airports (Manaus, Boa Vista, Porto Velho, Rio Branco)
- Santa Casa de Valinhos, GPACI, AMHEMED (medical sector)
- Solo Sagrado (chemical industry, agribusiness)
- Kerry do Brasil (food industry)
- Palmaly Agropecuária (agribusiness)
In each of these cases, the company achieved:
- Audit compliance
- Improved governance
- Updated asset register
- Reduction of accounting risks
- Optimized depreciation and tax benefits
AXS and the Power of Technology
In addition to consulting services, AXS offers a proprietary cloud-based asset management software, built for small and medium-sized enterprises. With it, you can:
- Control depreciation schedules
- Attach documents and images
- Manage physical location of assets
- Generate reports in real time
- Share access with multiple departments or auditors
- Ensure traceability and audit-readiness
💻 The platform integrates with your accounting and ERP systems and can be used on desktop or mobile.
Final Thoughts: Turn Compliance into Competitive Advantage
Audits no longer tolerate inconsistencies. Investors no longer accept opaque books. And the market no longer rewards companies that neglect governance.
CPC 27 is not a burden—it’s an opportunity. It allows your company to demonstrate maturity, control, and transparency. But only when executed with technical rigor and strategic vision.
AXS Consultoria Empresarial exists to help your company seize this opportunity.
📩 Want to learn more?
📞 Contact us:
📧 contato@axsconsultoria.com.br
🌐 www.axsconsultoria.com.br
📱 WhatsApp: (15) 98815-1487
Let’s put your fixed asset management on a new level—compliant, strategic, and audit-ready.
Data: 05/08/2025
