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Apresentamos a seguir os papers elaborados pelos professores e alunos do laboratório:

 

 

DISCLOSURE IN PUBLIC SECTOR: AN ANALYSIS OF THE LEVEL OF DISCLOSURE IN THE ANNUAL REPORTS OF BRAZILIAN 

Autores: Adolfo Henrique Coutinho e Silva; Maria Amália da Costa Bairral;

Keywords: Public transparency index; Annual Reports; Governmental Incentives.

(Revista Adm. Pública. 49(3):643-675 – Maio/ Junho, 2015)

Abstract

The present study analyzes the level of public transparency in the annual reports of federal public bodies and the incentives (political, institutional, governmental, social and financial) which can affect  the disclosure of public information. It approached the Agency Theory and the need for public accountability in the disclosure of information, since government managers may provide incomplete information (agency conflict). Accordingly a greater transparency of public information may serve as a way of approaching the principal (citizens) and the agent (public officer).  We carried out an empirical research, quantitative, which analyze the level of transparency presented in the 2010´s annual reports of 115 federal public entities. For this purpose, an index of federal public transparency was constructed, based on international studies, in order to verify the level of disclosure presented on the annual reports and the incentives that affect disclosure. The results indicate a moderate level of public transparency (48%), deficiency of compliance with mandatory disclosure (80%) and low adherence to voluntary disclosure practices (19%). Regarding incentives to disclosure, a positive relationship of the entity type, accessibility and personnel demographic with the public transparency index was observed, while public bureaucracy showed a significant relationship, but negative. Meanwhile the size, size of core management, budgetary revenues and federal dependency does not influence the disclosure of public information in the annual reports.

STATEMENT OF COMPREHENSIVE INCOME ANALYSIS AFTER THE IMPLEMENTATION OF IFRS IN BRAZIL

Autores: Adolfo Henrique Coutinho e Silva; Érica Gomes Rocha da Silva;

Keywords: Comprehensive income statement; International Accounting standards; Relevance of accounting information; Other comprehensive income; New market.

(Revista Contemporânea de Economia e Gestão. Vol 13 – Nº 1 – jan/abr 2015ee)

Abstract

This study examined the information content of the Comprehensive Income Statement published by 62 companies of “New Market” of BM & FBovespa. The statistical analysis consisted of the application of the mean difference paired test (T test and Wilcoxon test). In addition, a qualitative analysis was performed. The results indicated that: (a) approximately 50% of companies reported gains and losses in Comprehensive Income Statement; (b) the effects of gains and losses were positive in 2012 and 2011 and negative in 2010; (c) the CPC 2 (Effects of changes in exchange rates and translation of financial statements) and CPC 38 (Financial Instruments) were the most frequent; and d) there are differences between metrics Net Income and Comprehensive Income for the companies analyzed in years 2011 and 2010. The results indicate that the items of the DRA have the potential to generate volatility in the income statement if they were recognized in the Income Statement.

 

ACCOUNTING CHOICES: AN ANALYSIS OF INVENTORY VALUATION METHODS USED BEFORE AND AFTER IFRS ADOPTION

Autores: Adolfo Henrique Coutinho e Silva; Thiago Medeiros de Souza Barranco;

Keywords: Inventory valuation methods; Accounting practices; Positive Accounting Theory; International accounting standards.

(Working Paper 2014)

Abstract

The aim of this paper was to identify the inventory valuation methods adopted by publicly traded corporations after IFRS implementation, as well as to analyze the economic determinants behind the choice of valuation method used. The literature that was reviewed covered theories used to explain accounting choices (particularly the Positive Theory of Accounting and the Ricardian Hypothesis), including accounting choices regarding inventory valuation methods, and Accounting Standard CPC 16 (2009), concerning inventories, which resulted from convergence with international accounting standards. Through manually reviewing annual reports, it was found that almost all of the companies that were analyzed adopted the weighted average cost inventory valuation method . A multiple case study was carried out to analyze the motivation behind accounting choices for cases identified as exceptional. The results showed that the adoption of weighted average cost by companies is, in general, consistent with the hypothesis of reducing tax burden (tax planning), given the economic climate at the time. For the only company, one belonging to the chemicals sector, that adopted the FIFO method, it was observed that the positive accounting theory is not applicable and that the Ricardian Principle of Comparative Advantage is the best explanation for the adoption of this different accounting method. The results presented are consistent with the literature that was reviewed, and provide relevant information on the accounting practices adopted by Brazilian companies.

 

STOCK MARKET IMPACT ANALISYS DUE TO HEDGE ACCOUNTING ADOPTION BY BRAZILIAN COMPANIES 

Autores: Adolfo Henrique Coutinho e Silva; Marco Aurélio Goulart Canongia;

Keywords: Accounting changes; Event study; Abnormal return; Accounting based measures; Brazilian CPC 38 Standard.

(Working Paper 2014)

Abstract

This study aims to analyze the market’s reaction, using the event study method, to non-financial companies announcing their adoption of hedge accounting, which is regulated by CPC 38, from 01/01/2013 to 28/02/2014. The companies studied formally designated their hedge ratios, such as in cash flow, in order to protect their future export incomes, in dollars, which are considered as likely to be high, against a portion of their future due liabilities, also in dollars, since they can use non-financial liabilities in order to achieve this goal. The risk-adjusted and market returns, using the market model based on the theoretical CAPM (Capital Asset Pricing Model), was the statistical methodology used. The data used in the study were the prices of ON and PN stocks issued by Petrobras, Braskem, Tupy, Randon andFras-le, all companies that opted for the adoption of hedge accounting in the period analyzed. The analysis was based on the abnormal return and cumulative abnormal return of each stock studied. Statistical analysis showed that none of the companies presented an abnormal return in influence date d0 and that only Petrobras ON and Randon PN showed an abnormal return in the event window. The abnormal return of Petrobras PN, Braskem ON and PN, Tupy ON and Fras-Le ON, showed no statistical significance. Additionally, two strength tests that were performed confirmed the adopted methodology, from both quantitative or qualitative viewpoints. The result of this study demonstrates that events are not identically absorbed by the market, therefore the effects of a change in accounting standards depends on the operation and the company’s characteristics. This study contributes to improving our understanding of the impact of -information regarding changes in accounting practices on the stock prices of publicly traded companies, especially the optional adoption of hedge accounting.


 

ADDED VALUE STATEMENT (AVS): AN ANALYSIS OF ITS COMPARATIVENESS AFTER
BECOMING COMPULSORY IN BRAZIL

Added Value Statement (AVS): An Analysis of Its Comparativeness After Becoming Compulsory in Brazil 

Autores: Adolfo Henrique Coutinho e Silva; Renato Lopes de Almeida;

Keywords: Value Added Statement; Accounting Information; Comparability.

(Revista de Contabilidade do Mestrado de Ciências Contábeis da UERJ, v. 19, n° 1, 2014)

Abstract

The Value Added Statement (VAS), which aims to show how is formed and distributed the wealth of an entity, is an important statement to assess the relationship between company and society. Due to the recent mandatory disclosure of this statement in Brazil, established by Law 11.638/2007 for public-trade companies, this study intended to verify the VASs’ quality about the year 2011, prepared by non financial public-trade companies, from the comparability’s point of view. Thereunto, was carried out an empirical study through a qualitative approach, using the method of multiple case study. Were analyzed 29 companies’ VASs, obtained from a Brazilian business newspaper called “Valor Econômico”. The results bring out to the need for improvements in the VASs’ quality not only in terms of comparability, but also about the reliability and comprehensibility of their information. 

Impact of the Implementation of International Accountings Standards in Brazil: Empirical Evidence in the Industry Regulated and Unregulated

Autores: Adolfo Henrique Coutinho e Silva; Thiago de Abreu Costa; Sidmar Roberto Viera Almeida; Luis da Costa Laurencel; Mauricio Almeida dos Santos Junior;

keywords: Corporate Accounting; International Accounting Standards; Accounting Harmonization.

(Revista de Gestão e Contabilidade da UFPI (GeCont), v. 1, n. 1, 2014) 

Abstract

The aim of this article was to verify if are significant differences between the value of the stockholders' equity, net profit and return on equity (ROE) established in 2007, 2008 and 2009 under different accounting standards (IFRS and BRGAAP) of publicly traded companies in the telecommunications industry and the chemical industry, during the period of convergence to international accounting standards. In addition, searched to identify which changes in accounting practices were more significant and frequent during the period of convergence. This sample was composed of 24 publicly traded companies listed on Bovespa, that 12 of the telecommunications industry (regulated sector) and 12 chemical industry (unregulated sector). With regard to the methodology, it is a qualitative and quantitative research, using average difference test (Student's T and Wilcoxon) and proportion test. The survey pointed out significant differences between the stockholders found in the years 2008 and 2009 in the unregulated sector and in net profit and ROE in fiscal year 2009 for the regulated sector. The unregulated sector covered presented the biggest adjustments when compared with the industry regulated. The principal accounting pronouncements are responsible for these adjustments were CPC 15 (Business Combination), CPC 25 (provisions, contingent liabilities and Contingent Assets), 27 (Property, Plant, And Equipment) CPC, CPC 32 (Taxes on profits) and the CPC 04 (intangible assets).

 

Choice of Accounting Practices in Brazil: An Analysis from the Contractual Covenants Hypothesis Perspective
Autores: Adolfo Henrique Coutinho e Silva; Alexsandro Broedel Lopes;
Keywords: Financial accounting, positive theory of accounting, covenants

(PhD thesis - December 17, 2008 (Sumary))

Abstract

This paper aims to investigate whether managers of companies which are registered at the Brazilian Securities and Exchange Commission (CVM) and which have made long-term financial borrowings (bonds and bank loans), have voluntarily changed their accounting practices in order to prevent violation of the covenants (based on accounting numbers) specified in their lending agreements. Previous studies suggest that company managers have adopted less conservative accounting practices (increasing their earnings and equity) in order to avoid violation of financial covenants. It was possible to demonstrate, by analyzing 125 Brazilian companies (registered at the CVM), with records of long-term borrowings in the credit market via bonds and bank loans (from 2000 to 2006), and by using univariate (empirical histograms and chi–square tests) and multivariate (logistic regression) statistical tests, that these companies did not make voluntarily changes in their accounting practices in order to avoid violating their financial covenants. Two relevant items can explain the observed results: the low costs in cases of violation of financial covenants, and the active accounting regulations and monitoring efforts of regulatory agencies for public services, especially in the electricity sector. The main contribution of the observed results is to demonstrate that, despite the existence of financial covenants in debt securities issued by the Brazilian companies analyzed, there is no significant evidence of opportunistic changes in accounting practices to avoid breaches in financial covenants.

 

Changes in Accounting Practices in Privatized Firms: A Case Study of the Public Companies in Gas Distribution Sector

Autores: Adolfo Henrique Coutinho e Silva; Moacir Sancovschi;
Keywords: Public companies; privatization; accounting choices and accounting;
(RBC: Revista Brasileira de Contabilidade, v. 166, p. 23-37, 2007)

Abstract

The aim of this paper was to study the impact of privatization on company accounting policy. It analyses the changes in the accounting processes (recognition, measurement and disclosure) used in annual reports before and after the privatization of two companies from the piped gas distribution sector. The literature reviewed covers the accounting choices made by companies before and after privatization, based on the theory of positive accounting and its hypotheses. The results show that the companies that were analysed adopted more conservative accounting procedures (recording significant losses) in the first year after the transition from public to private management, resulting in better results being recorded in subsequent years, as well as the payment of dividends. These results are consistent with the literature reviewed. However, contrary to what was expected with regards to the accounting choices made before privatization, the companies recorded new liabilities during this period.

 

Accounting Regulation In Brazil: An Analysis Of Public Accounting Committee (CPC) Pronouncements From 2007 To 2011

Autores: Nathalia Apolinario Lima de Oliveira; Adolfo Henrique Coutinho e Silva; Jorge Vieira da Costa Junior;
Keywords: Accounting; regulatory; public hearing;  
(Advances in Scientific and Applied Accounting, v.6, n.1, p. 49-65, 2013)

Abstract

This study aims to investigate the due process related to the public hearing regarding standards issued by the Brazilian Accounting Standards Committee (CPC) from 2007 to 2011. More specifically, we have sought to identify the suggestions made by the interested parties that took part in the public hearing and their main attributes (frequency and nature of the suggestions), as well as the ratio of their acceptance by the CPC. After performing quantitative analysis (non-parametric statistical tests of differences in proportions) and qualitative analysis of the data generated by the public hearing reports, we concluded that the CPC focused its efforts on maximum convergence with IFRS. In order to reach this conclusion, we took into account the phases of the due process, the types of standards issued (with and without matching IFRS), and the nature of the suggestions made (the accounting implications regarding measurement, recognition and disclosure). The CPC has accepted a small number of suggestions made by interest parties (7.4% of cases), and the great majority of the suggestions accepted are based on full disclosure, with no significant impact on accounting practices.

 

Accounting practices of the Brazilian Trading Company: The case of  Boris & Frères Ltd. Co., 1882–1896

Autores: Adolfo Henrique Coutinho e Silva; Amaury José Rezende; Flávia Zóboli Dalmácio; José Paulo Cosenza;
Keywords: Accounting, Brazil, regulation, tax system, trading company, case study.
(Working Paper 2013)

Abstract

This study documents the main accounting practices adopted by a trading company, controlled by a family of French origin, during the transition period between the Empire and the Republic in Brazil. In addition, it analyzes the company’s bookkeeping mechanisms, discusses the level of sophistication of the adopted accounting practices, and identifies the economic and legal influences on the accounting system at that time. This study documents an important component of Brazil’s economic history, allowing academics and professionals access to such historic records. Moreover, it provides evidence concerning the levels of development and complexity of the accounting practices adopted at that time, thus reaching conclusions regarding their evolution. This helps in our understanding of how accounting has adapted to users’ informational needs and legal requirements. Lastly, this study allows comparisons with other case studies of accounting practices adopted in other countries and at other  periods in time.

 

Theory Of Corporate Scandals: A Comparative Analysis Of Brazilian And North American Cases

Autores: Adolfo H. Coutinho e Silva; Moacir Sancovschi; Júlio Sérgio de S. Cardozo; Robson Augusto Dainez Condé;
Keywords: Accounting scandals; Corporate governance system; Theory of corporate scandals.
(Revista de Contabilidade do Mestrado em Ciências Contábeis da UERJ (online), v. 17, n.1, p. 108 - p. 108, jan./abril, 2012)

Abstract

The purpose of this study was to analyze and compare 52 accounting scandals reported in Brazil and in the USA in the last 20 years. The empirical evidence indicates that the accounting frauds disclosed in these countries do not have the same characteristics. The results can be explained by the Theory of Corporate Scandals (COFFEE Jr., 2005), considering that Brazilian companies have a very different system of corporate governance from American companies. By gathering information about the frauds, the study also allows reflection on what is systematic in these cases and creates an opportunity for the development of conceptual models that explain accounting fraud.

 

Disclosure Of Information On Innovation In Annual Reports: An Analysis Of Public Companies With Research And Development Costs (R&D)

Autores: Adolfo Henrique Coutinho e SilvaCláudia Marchioti Nicolau dos Reis;
Keywords: Disclosure; Innovation; Annual Reports; R&D Costs;
(Revista BNDES Setorial, v. 36, p. 85-118, set-2012)

Abstract

The aim of this paper is to analyse the degree of disclosure of information regarding innovation in the Annual Reports of 114 publicly-traded companies in 2011. More specifically, the objective is to analyse whether there are different degrees of disclosure of information regarding innovation in the Annual Reports of companies with research and development (R&D) expenses and those without, as well as evaluating whether the degree of disclosure of information regarding innovation is related to: (1) company size; (2) economic and financial performance; (3) potential for innovating; (4) the degree of government intervention; (5) the degree of international influence; and (6) the degree of stock market visibility. Based on the data analysed, it was observed that: (a) companies with R&D expenses disclosed, on average, more information regarding innovation that those with no such expenses; (b) the degree of transparency regarding innovation differs according to the degree of government influence, in that the Innovation Transparency Index of regulated companies is greater than that of non-regulated companies; and (c) the size and performance (measured in net profit) of companies were positively correlated with the Innovation Transparency Index. The main practical contribution of this study is in highlighting the need for voluntary disclosure of information regarding innovation, in order to legitimize greater government support in the form of funding and tax incentives for companies in general. Within the academic field, it helps to confirm some of the results observed in former studies by using data for Brazilian companies, as well as presenting empirical data that is specific to an emerging economy.

 

Voluntary Social Responsibility Disclosure And The Fukushima Nuclear Accident: A Case Study Of Eletronuclear

Autores: Marlon Cruz Ferreira; Adolfo Henrique Coutinho e Silva; Manoel Marcondes Machado Neto;
Keywords: Voluntary social disclosure; Social responsibility; Disclosure strategies; Legitimacy theory;

(Revista Universo Contábil, v. 8, n. 4, p. 76-96, out./dez., 2012)

Abstract

Legitimacy theory states that when faced with events that reflect negatively on their products or services, companies tend to use voluntary disclosure of information as a strategy with which to demonstrate social responsibility in their activities and regain legitimacy in society. This study aims to analyse reports from Eletrobrás Thermonuclear SA (Eletronuclear), from 2006 to 2010, in order to verify how the company used voluntary disclosure to address negative issues related to its activities. As is consistent with previous studies, the results suggest that the company’s managers, consciously or unconsciously, increased the level of disclosure in their management reports related to the following categories: environment, products and energy, and that they utilized the second and third disclosure strategies proposed by Lindblom (1994). In addition, after the accident, they increased their voluntary disclosure by improving their sustainability report and preparing other related documents. The results observed in the case study contribute to the literature studied in that they demonstrate that there are no significant differences between the social responsibility disclosure strategies used by (1) public and private companies, and (2) companies that cause environmental accidents and those that belong to the same industry, in their quest to maintain social legitimacy in the face of questions regarding their activities or the products they sell, even at different times, in the last three decades.

 

Corporate Social Responsibility Disclosure: A Case Study Of The Petróleo Brasileiro Sa Oil Company

Autores: Adolfo Henrique Coutinho e Silva; Moacir Sancovschi;
Keywords: Corporate Social Responsibility; Disclosure; Case Study;

(Sociedade, Contabilidade e Gestão (UFRJ), v. 1, p. 42-57, 2006)

Abstract

This paper documents and analyses the way in which the company Petróleo Brasileiro S.A. used the voluntary disclosure of social responsibility information in its annual reports, between 1993 and 2002, in order to address concerns about its activities in the face of a possible threat to or loss of legitimacy. Based on the legitimacy theory and on the political cost hypothesis, it is shown that that the company under analysis used its annual reports to address negative questions related to the environmental accidents caused as a result of its activities. It is also shown that the company used specific strategies in its disclosure of social responsibility information. Excerpts from annual reports are presented which show the use of self-benefiting arguments in order to explain problems related to the company’s activities. That is, the company’s management focus on presenting social responsibility information that emphasises positive aspects. In summary, this paper shows that, consciously or unconsciously, the company’s management adopted specific standards regarding the form and content of social responsibility information it disclosed in its annual reports as a way of regaining legitimacy.

 

Choice Of Accounting Practices: A Study On Investment Properties In Public Non-Financial Brazilian Companies

Autores: Thiago de Abreu Costa; Adolfo Henrique Coutinho e Silva; Luiz da Costa Laurencel;
Keywords: Investment Properties; Results Management; Choice of Accounting Practices; International Accounting Standards; Fair Value

(Revista de Contabilidade e Organizações, v. 18, p. 25-36, 2013)

Abstract

The aim of this paper was to analyse the economic incentives behind the choice of accounting method (cost or fair value) used by publicly-traded non-financial Brazilian companies for valuing investment properties. A quantitative analysis was carried out using univariate (Mann-Whitney U difference of means test and proportions test) and multivariate (logistical regression) statistics in order to analyse the 36 companies with investment properties. The results show that only 14 companies (39%) opted for the fair value method for valuing their investment properties. Through univariate and multivariate analysis of the data it can be concluded that “net revenue” was the only statistically significant variable that could explain the companies’ choice of method used for valuing investment properties. In general, those companies with smaller net revenues showed a greater probability of using the fair value method. This study is relevant in two main ways: (a) it presents complementary evidence (in line with accounting choice research) regarding the accounting choices made by company management in Brazil following the adoption of international accounting norms, and highlights the economic incentives that influence companies to adopt specific practices within this new accounting framework; (b) it highlights the main aspects of the implementation of CPC 28 (Investment Properties) in the first year in which international accounting norms were fully adopted.


An Analysis Of The Impact Of International Accounting Standards On Net Income And Equity  For Companies In The Textile Industry

Autores: Adolfo H. Coutinho e Silva; Luiz da Costa Laurencel; Sidmar Roberto V. Almeida; Silvestre de Mello de Souza; Thiago de Abreu Costa;
Keywords: Corporate accounting; International accounting standards; Accounting harmonization; Textile industry;

(RIC - Revista de Informação Contábil. Vol. 7, nº 2, p. 01-18, Abr-Jun/2013)

Abstract

This study investigates  whether there are significant differences between the values of  stockholders’ equity, net profit and return on equity (ROE),  for publicly-traded companies in the textile sector,  in  2007, 2008 and 2009, when these values are calculated using different accounting rules (CPC/IFRS and BRGAAP). In addition, the study seeks to identify which changes in accounting practices were more significant and frequent in the period under analysis. The sample is comprised of 23 publicly-traded companies listed on Bovespa. The analysis was conducted using average difference tests (Student's t and Wilcoxon). The results show statistically significant differences in stockholders' equity in 2008 (11.2%) and 2009 (11.6%), net profit in 2009 (5.1%), and ROE in 2009 (-10%), when calculated using different accounting rules (BRGAAP and CPC/IFRS),  with rule CPC27 – fixed assets being primarily responsible for these differences. The study demonstrates that the adoption of international accounting standards can compromise the comparability of financial statements for periods before and after their adoption. The study is also relevant in analyzing the impact of changing accounting practices within a specific economic sector, thereby contributing to a better understanding of the reality of accounting within that sector.

 

An Analysis Of The Impact Of The Adoption Of International Financial Reporting Standards In Brazil: A Study Of Public Companies In The Food, Drinks And Trade Sectors

Autores: Thiago de Abreu Costa; Sidmar Roberto Vieira Almeida; Adolfo Henrique Coutinho e Silva;
Keywords: Corporate Accounting; International Accounting Standards; Accounting Harmonization;

(Pensar Contábil, Rio de Janeiro, v. 15, n. 56, p. 4 - 13, jan./abr. 2013)

Abstract

The goal of this study was to verify if there are significant differences between net equity, net profit and return on equity (ROE) values in 2008 and 2009, the transitional period, using different accounting standards (IFRS and BRGAAP) for publicly-traded companies belonging to the food, drinks and trade sections. In addition, it sought to identify what changes in accounting pratices were more significant and frequent in the period under examination. The sample was composed of 14 publicly-traded companies listed on Bovespa. In relation to methodology, it is a quantitative and qualitative study, using average difference tests (Student’s t and Wilcoxon) and the ICPI (inverse partial comparability index). Previous studies in European countries (Germany, Astria, Belgium, Denmark, Spain, Finland, France, Greece, Holland, Italy, Norway, Switzerland, United Kingdom ) addressing the process of convergence between local and international accounting standards highlight that the previously adopted standards are generally more conservative than the new international ones. The results show: (a) a reduction of 27.6% in net income for 2008 (for the 1st stage of the convergence process) and an increase of 1.4% in net income for 2009 (for the 2nd Phase), both significant statistically (with a significance level of 10%); (b) a decrease of 0.3% in equity in 2008 (for the 1st Phase), then an increase of 0.6% in equity  in the same year (for the 2nd Phase), and an increase of 5% in equity in 2009 (not all statistically significant); and (c) the return on equity changed from -132% to 26% in the second stage of the convergence process (and from 3% to 4% in the 1st phase). This study contributes to analyzing how changes in accounting practices may affect users of accounting information in the decision-making process. Moreover, as a sectorial analysis, the study provides an insight into the most influential accounting changes for the sector in question.

 

An Analysis Of The Impact Of International Accounting Standards On Net Income And Equity For Firms In The Natural Resource Extraction And Processing Sector

Autores: 

Thiago de Abreu Costa; 

Sidmar Roberto Vieira Almeida; 

Adolfo Henrique Coutinho e Silva;

Keywords: Corporate accounting; International Accounting Standards; Accounting harmonization;
(Revista de Contabilidade do Mestrado em Ciências Contábeis da UERJ (online), n. 3, p. 156 - p. 156, set./dez., 2011)

Abstract

The aim of this paper was to determine whether there are significant differences in shareholders' equity, net income and return on equity (ROE) values in 2008 and 2009, the transition period, for publicly-traded companies that extract and process natural resources, when these values are calculated using different accounting standards (IFRS and BRGAAP). In addition, we sought to identify whether changes in accounting practices were more significant and frequent in this period. The sample consists of 17 publicly-traded companies listed on Bovespa, which are classified under the sub-sectors of mining, non-metallic minerals, oil and gas, and pulp and paper. Regarding methodology, it is a qualitative and quantitative study, that uses medium tests (Student's t and Wilcoxon) and ICI (partial inverse index of comparability). There were statistically significant differences in shareholders' equity in 2008 and 2009 when calculated using the different rules (BRGAAP and CPC / IFRS). The main CPCs responsible for these differences were CPC 33 - Retirement benefits, CPC 15 - Business Combinations, CPC 29 - Biological Assets and CPC 27 - Fixed Assets, as well as deferred taxes resulting from changes in accounting practices. The analysis of Net Income in 2009 and ROE in 2009 revealed no significant differences between the amounts calculated using the different rules (BRGAAP and CPC / IFRS). The study is relevant as it analyzes the impact of changes in accounting practices within a specific industry, thus contributing to a better understanding of contemporary accounting in general.

 

The Impact Of Adopting International Accounting Standards In Brazil: An Investigation Into The Steel And Metallurgy Sector 

Autores: Leonardo Portugal Barcellos; Adolfo Henrique Coutinho e Silva; Jorge Vieira da Costa Junior;

Keywords: Accounting convergence; IFRS; steel and metallurgy sector;

(Pensar Contábil, Rio de Janeiro, v. 14, n. 54, p. 27 - 37, maio/ago. 2012)

Abstract

The objective of this paper is to measure and analyze the impact of each stage of the process of accounting convergence in Brazil on shareholders’ equity, net income and return on equity (ROE) reported in 2008 and 2009 by publicly-traded companies in the steel and metallurgy sector. To this end, difference of means tests were applied, as well as the conservatism index, calculated as shown by Gray (1980). The results demonstrate poor quality in the disclosure of transitional effects, since a considerable portion of companies in the sector did not comply with the disclosure requirements of the rules’ initial adoption. Additionally, contradictions were found in relation to the adoption of the new standards, as well as considerable variations in the ways used to disclose information. The results of a quantitative analysis show that: (i) the adoption of the standards generated a reduction in the metrics investigated in the first stage, (ii) the rules of the second stage led to an increase in equity in 2008 and 2009 and a decrease in net profit in 2009, and (iii) after the entire process, shareholders’ equity in 2008 was higher than that reported using the previous standards. In general, the results show that the previous Brazilian accounting practices were more conservative compared to those aligned with international accounting standards. The contribution of this study lies mainly in its analysis of the impact, in each stage of convergence, , on a sector that is fundamentally important to the Brazilian economy.

 

The impact of adopting International Accounting Standards on Public Companies in the Building and Construction Sector in Brazil

Autores: Juliana Silva Coutinho; Adolfo Henrique Coutinho e Silva;
Keywords: Accounting convergence; IFRS; building and construction sector;

(Working Paper 2013 - 2º lugar no Prêmio Contador Américo Matheus Florentino- CRC-RJ - 2013)

Abstract

The objective of this paper is to analyze the impact of the mandatory adoption of International Financial Reporting Standards (IFRS) on equity, net income, and Return on Equity, reported by listed companies in the building and construction industry in Brazil. In addition, we sought to determine which changes in accounting practices were more frequent and significant in both phases analyzed. To reach our objectives, we used qualitative and quantitative research with differences of means tests (Student t). The results show a low level of disclosure of transition effects, as many companies did not reveal what these effects were, and the form of company disclosure varied greatly. The results of the quantitative analysis show that: (i) in the first phase, all of the analyzed metrics were lower in value, with standard CPC 12 (Adjustment to Present Value), guidance OCPC 01 (Real Estate Development Entities) and the tax effects generated with the adoption of Law 11.638/07 and MP 449/08, being the most impacted; and (ii) in the second phase of transition, there was an increase in equity in 2008 and 2009 and a decrease in net profit in 2009, with standards CPC 36 (Consolidated Financial Statements), CPC 15 (Business Combinations) and CPC 32 (Income Taxes) being the most impacted. This study is relevant because it identifies how the adoption of new accounting standards impacted the financial statements of companies in an important sector.

 

An Analysis Of The Impact Of Matching Brazilian Accounting Standards With International Accounting Standards On Companies Providing Public Services In The State Of Rio De Janeiro

Autores: Érica Gomes Rocha da Silva; Adolfo Henrique Coutinho e Silva;
Keywords: Financial Accounting. International Accounting Standards. Accounting Harmonization

(Working Paper 2012 1º. lugar no Prêmio Américo Matheus Florentino -CRC-RJ - 2012).

Abstract

International Financial Reporting Standards (IFRS) were adopted by several countries. Since Brazil actively participates in international capital markets, it realized there was a need to reconcile its accounting practices with IFRS. This harmonization promoted changes in Brazilian accounting law. Because of this, the subject has been much discussed in accounting papers. Therefore, this paper aims to examine which rules issued by the Brazilian Accounting Committee (CPC) impacted the equity and net income of companies that provide public services in Rio de Janeiro State. To achieve the objective we analyzed Financial Statements for the years 2008 and 2010. It was found that several standards impacted financial statements, but only CPC 12 - Present Value Adjustment impacted more than one company. It was also observed that the form of information disclosure by companies varied widely, and that a significant number did not clearly mention the rule that caused the effect. With regards to the effect on shareholders' equity and net income, it was found that the adjustments were higher in the second stage of the process (2010) than in the first one (2008). This study is relevant because it identifies how the adoption of new accounting standards affects the financial statements of firms providing public services in Rio de Janeiro State.

 

Inventory Accounting Choice After Ifrs Adoption: A Multiple Case Study

Autores: Thiago Medeiros de Souza Barranco; Adolfo Henrique Coutinho e Silva;
Keywords: inventory valuation methods; accounting practices; FIFO; international accounting standards;

(Working Paper 20123º. Lugar no II Prêmio Contador Américo Matheus Florentino - CRC – RJ - 2012)

Abstract

The aim of this paper was to identify inventory valuation methods adopted by publicly-traded corporations after IFRS implementation, as well as to analyze the economic determinants of the valuation methods chosen. The literature review addressed the theories used to explain accounting choices (especially, the Positive Theory of Accounting and the Ricardian Hypothesis), including accounting choices regarding inventory valuation methods, as well as Accounting Standard CPC 16 (2009), concerning inventories, which was the result of convergence with international accounting standards. After manually searching through annual reports, it was found that almost all companies analyzed adopted the weighted average cost inventory valuation method. A multiple case study was conducted to analyze the motivation behind accounting choices in cases identified as exceptional. The results showed that weighted average cost adoption by companies is, in general, consistent with the tax burden reduction (tax planning) hypothesis, observed in the current economic climate. As for the only company that has adopted the FIFO method, one belonging to the chemical sector, it was observed that the positive accounting theory is not applicable and the Ricardian Principle of Comparative Advantage is the best explanation for the adoption of this accounting method. The results presented are consistent with the literature review and present relevant background information.

 

The Organizational Impact Of The Implementation Of International Accounting Standards: A Case Study Of Two Publicly-Traded Brazilian Companies

Autores: Vivian Teixeira Ribeiro; Adolfo Henrique Coutinho e Silva;

Keywords: Accounting; International Standards; IFRS adoption; Case Study;

(Working Paper 20133º. lugar no Prêmio Contador Américo Matheus Florentino - CRC/RJ – 2013)

Abstract

The objective of this study is to describe the organizational impact that occurred in two large public companies, as a result of the implementation of international accounting standards (IFRS), as the perception of accountants responsible for the preparation and publication of the audited financial statements of companies analyzed. The results generally indicate that the greatest difficulties lie in finding skilled professionals, in how current legislation in Brazil is affected, and in the short times for adapting to the new Accounting Standards, with the latter seen as the main negative factor in the process. Clarity of information, an increased understanding of the standards, comparison between results, greater integration between company areas and cost savings were highlighted as advantages of adopting IFRS. The study was justified by the importance and attention that has been given to the subject and primarily by the need to investigate, using a new methodology, the perception accounting professionals in Brazil have, considering their own experience and accounting routine. It is hoped that this study identifies those points that caused the most difficulties in the adaptation process, as well as respondents’ perceptions of the short and medium term benefits for both accounting professionals in general and for the organizations in which they work.

 

Adoption Of Ifrs In Brazil: An Analysis Of The Effects On The Comparability And Relevance Of Publicly-Traded Firms’ Financial Statements

Autores: André dos Santos do Nascimento; Adolfo Henrique Coutinho e Silva;
Keywords: Financial Accounting, Adoption of IFRS, Accounting Convergence

(Working Paper 2012)

Abstract

The aim of this paper is to analyse the impact of the changes in accounting practices, resulting from the adoption of international accounting rules, on the accounting variables (accounts and indicators) published by publicly-traded Brazilian companies in 2008 and in 2010. It seeks to understand the effect the convergence process has on the comparability and relevance of accounting records prepared in accordance with the international rules (IFRS) and with the Brazilian rules (BRGAAP), based on Act no. 6404/76. An analysis of 21 accounting variables (accounts and indicators) for 49 IBOVESPA-listed Brazilian companies was carried out. For this, financial statements filed on the Brazilian Securities and Exchange Commission website were analysed, using statistical difference of means parametric tests (student t-test) and non-parametric tests (Wilcoxon test), depending on the normality of the variables (according to the results of the Kolomogorov-Smimov and Shapiro-Wilk test). As was shown for other countries, the results of the study show that accounting data for the companies that were analysed differs significantly and in a positive direction when international accounting rules are applied in substitution of Brazilian ones. It was also shown that IFRS accounting standards are more relevant than Brazilian rules in that the accounting data appeared closer to market values. The study also showed that rules CPC 13, CPC 15 and CPC 27 caused the most significant effects in terms of value and frequency. This study is relevant in 5 main ways: (1) the experience of convergence with international rules was different for Brazil than for other countries; (2) the accounting practices adopted in Brazil before the convergence process have peculiar characteristics; (3) there is a lack of research into the effects of adopting international rules in the emerging countries that make up the BRICS (Brazil, Russia, India, China and South Africa); (4) the companies that make up the sample analysed in this study are largely represented in the Brazilian capital market (companies that compose the Bovespa Index); and (5) regarding the analytical methodology, it analyses the effects of adopting IFRS on 12 financial accounts and on 9 financial indicators. In this way it was possible to verify the comparability in a more accurate way, as well as identifying which rules had more impact on Brazilian companies.


The Relationship Between The Accounting Choices And The Characteristics Of Firms: The Case Of Cvm Deliberation No. 371/00

Autores: Adolfo Henrique Coutinho e Silva
Keywords: Accounting; Accounting Choices; Actuarial Liability; 

(Working Paper 2006)

Abstract

The aim of this paper is to study the relationship between company types and the accounting choices made regarding the timing and method used when recording the initial effects of CVM Resolution no. 371/00. In addition, the paper identifies those companies impacted by the resolution. The results indicate a large number of companies impacted by the rule and a significant number reporting actuarial deficits (63.0% of those companies impacted by the rule). With regards to the method used when recording actuarial deficit, 34 companies (37.0% of those with a deficit) opted to record it in the results, within up to 5 years, whereas 58 companies (63.0% of those with a deficit) opted to record it against shareholders’ equity, net of taxes. As to when the effects of the rule were recognised, only 8 companies recorded an actuarial deficit in the 2000 financial year (8.7% of those companies displaying a deficit), whereas 33.7% of the companies showing a deficit opted to postpone recognising the effects of the new rule. It should be noted that size (in total assets) resulted in the biggest difference between the two groups (with a 10% level of significance regarding the form of recognition and a 5% level of significance regarding the recognition timeframe). Return on Equity (RoE 2001) was 10% significant with regards to the form of recognition.


Evidence On The Average Time For Publication Of Financial Statements For Public Brazilian Companies

Autores: Adolfo Henrique Coutinho e Silva; Carlos Eduardo Vieira da Silva; Moacir Sancovschi;
Keywords: Disclosure of Financial Statements; Accounting; Brazil;

(Working Paper 2006)

Abstract

The aim of this paper is to establish the average timeframe over which publicly-traded Brazilian companies published their financial statements in 2002, 2003 and 2004, as well as to analyse the relationship between this timeframe and the different types of companies that were selected. The theoretical framework presents the timeframe for publishing financial statements in Brazil and argues that the agency theory and the political cost hypothesis help in understanding the incentives for management to bring forward the publication of financial statements. The paper shows that there are statistically significant differences in the timeframes used when publishing financial statements due to the companies’ results (profit or loss) and their size (large or small). Those companies that obtained a profit tend to publish their financial statements within a shorter timeframe than those that suffered a loss. Also, larger companies tend to publish their financial statements within a shorter timeframe than smaller ones. Contrary to expectations, there is no significantly sufficient evidence to suggest any difference in the average timeframes used for publishing financial statements resulting from the evolution of a company’s results (growth or contraction) nor from the type of control (private or publicly traded). These results are consistent with the literature that was studied and help in understanding those factors that affect management behaviour with regards to the timeframe used for publishing financial statements.

 

Rio De Janeiro’s Accounting Students’ Perception Regarding Stereotypes Of Accounting Professionals After The Adoption Of Ifrs

Autores: Érica Gomes Rocha da Silva; Adolfo Henrique Coutinho e Silva;
Keywords: Accounting. Accountant Profile. Stereotype of the professional. 

(Working Paper 2012)

Abstract

Considering the new skills that the labour market has come to demand from the accounting profession, particularly after the adoption of the new international accounting rules (IFRS), this paper aims to identify the perception accounting students at Rio de Janeiro State University (UERJ) and at Gama Filho University (UFG) have towards the profession. In addition, the paper aims to: a) analyse whether the perception of students at UERJ (a public university) differ from that of students at UGF (a private university); b) analyse whether such perceptions differ between students studying different subjects; c) analyse whether perceptions differ according to gender; and d) analyse the degree of importance certain factors have when students are choosing the profession. In order to achieve the aims of the study, questionnaires adopted by Saemann and Crooker (1999) were used. Afterwards, statistical non-parametric difference-of-means tests (the Mann-Whitney test) were carried out. The results show that the students that were analysed do not view the accounting professional in the traditional way, contrary to the results found by Saemann and Crooker (1999).