Editorial

ID: 6880

Authors: Gilberto de Andrade Martins.

Source: Revista Contabilidade & Finanças, v. 22, n. 56, p. 136-136, May-August, 2011. 1 page(s).

Document type: Editorial (Portuguese)

Can regulation make a difference? The case of environmental disclosure

ID: 6416

Authors: Alex Mussoi Ribeiro, Hans Michael Van Bellen, Luiz Nelson Guedes de Carvalho.

Source: Revista Contabilidade & Finanças, v. 22, n. 56, p. 137-154, May-August, 2011. 18 page(s).

Keyword: Accounting , Environmental Disclosure , Mandatory , Regulation

Document type: Article (Portuguese) Show Abstract

Based on different opinions concerning the need for mandatory environmental disclosure, the main purpose of this research was to verify whether or not the company's environmental reporting practices react to different regulatory stimuli. The answer to this question is useful to evaluate the effectiveness of the introduction of regulatory mechanisms in environmental disclosure practices. Since environmental disclosure is mainly voluntary, companies can simply override regulation, making it pointless. The method of research chosen was of a descriptive and predominantly quantitative nature. The companies selected as samples were from the oil and natural gas sectors from four different countries who share cultural similarities, such as the United States, Canada, England and Australia. The environmental information was collected from annual reports year ended 2007. In order to classify the environmental data used, a suitable comparative analysis of two consecrated works was used -the study of Clarkson et al. (2008) and the study of Wiseman (1982). The statistical tests proved that there are significant differences between the regulated and the unregulated countries, and the greatest differences were found when mandatory disclosure was utilized, thus proving that countries can indeed react to different regulatory stimuli.

The convergence level of the brazilian and american accounting principles with IASB standards: a contribution to brazilian companies’ adoption of IFRS

ID: 6417

Authors: Sirlei Lemes, Valdiney Alves Oliveira.

Source: Revista Contabilidade & Finanças, v. 22, n. 56, p. 155-173, May-August, 2011. 19 page(s).

Keyword: Accounting Convergence , Adoption of International Financial Reporting Standards , Disclosure , IFRS

Document type: Article (Portuguese) Show Abstract

This study aimed to assess the extent to which accounting information disclosed in the Brazilian and North American markets meet the requirements for the initial adoption of IFRS - International Financial Reporting Standards. The Brazilian Securities Commission (CVM) required the adoption of IFRS by Brazilian companies in CVM Instruction 457/07. Through a descriptive study about their goals and using the technical procedures of information retrieval and classical content analysis, we analyzed the financial statements prepared for the year 2008 in accordance with U.S. GAAP and B.R. GAAP of 20 Brazilian companies listed both on the Stock Exchange of New York (NYSE) and the Bolsa de Valores de Sao Paulo (BOVESPA), and calculated the rate of disclosure proposed in the study by Lopes and Rodrigues (2007). The research pointed out that the rates of disclosure calculated for Form 20F were higher than those calculated for the Standard Financial Statements (DFP), confirming a higher degree of convergence between U.S. GAAP and IFRS and suggesting that, due to IFRS adoption, financial statements in BR GAAP tend to change substantially, increasing the level of disclosure. Furthermore, for the sample, the results confirm what was presented in the selected literature about the direct influence of market sector and firm size on information disclosure. For auditors, the fact that global audit companies known as the Big Four audited the statement did not determine the extent of disclosure.

Efect of Law 11.638/07 on conditional conservatismo companies listed on BM&FBovespa

ID: 6418

Authors: Luis Paulo Guimarães dos Santos, Gerlando Augusto Sampaio Franco de Lima, Sheizi Calheira de Freitas, Iran Siqueira Lima.

Source: Revista Contabilidade & Finanças, v. 22, n. 56, p. 174-188, May-August, 2011. 15 page(s).

Keyword: 638/07 , Conservatism; IFRS; International Accounting Standards; Law nº 11

Document type: Article (Portuguese) Show Abstract

Law nº 11.638/07 has substantially changed Brazilian accounting practices and standards, and such changes can exert significant impacts on earnings conservatism. Understanding the role of conservatism and its determinants is important to interpret the nature, purpose and implications of accounting estimates. This study aimed to investigate whether the promulgation of Brazilian Law nº 11.638/07 changed the degree of conditional accounting conservatism of Brazilian companies listed on Bovespa & BMF BOVESPA. An empirical analytical research was carried out collecting information about non-financial companies listed on the Brazilian Stock Exchange from the first quarter of 2005 to the third quarter of 2009 in the Economatica® system. Basu's model was adjusted to measure the effect of Law nº 11.638/07 on conditional conservatism. In conservativeness hypotheses, earnings reflect bad news (negative stock returns) more quickly than good news (positive stock returns). In this model, the measure of conservatism (asymmetrical treatment of gains and losses) is based on the extent to which the earnings-return association is stronger during periods of bad news as compared with periods of good news. For the sample analyzed, results suggest that it cannot be inferred whether the new rules had some effect on the degree of asymmetric recognition of gains and losses.

Value and growth stocks in Brazil: risks and returns for one- and two-dimensional portfolios under different economic conditions

ID: 6419

Authors: Leandro da Rocha Santos, Roberto Marcos da Silva Montezano.

Source: Revista Contabilidade & Finanças, v. 22, n. 56, p. 189-202, May-August, 2011. 14 page(s).

Keyword: BM&FBovespa , Brazilian Stocks , Emerging Markets , Growth Stocks , Market Efficiency , Value Stocks

Document type: Article (English) Show Abstract

For empirical purposes, value stocks are usually defined as those traded at low price-to-earnings ratios (stock prices divided by earnings per share), low price-to-book ratios (stock prices divided by book value per share) or high dividend yields (dividends per share divided by stock prices). Growth stocks, on the other hand, are traded at high price-to-earnings ratios, high price-to-book ratios or low dividend yields. Academic research so far produced, international and Brazilian alike, shows that value stocks outperform growth stocks, challenging the Efficient Market Hypothesis, which states that the market prices of traded stocks are the best estimate of their intrinsic values. Most studies use a single ratio to sort stocks on percentiles; risks (generally defined as beta or standard deviations) and returns are then calculated for the resulting value and growth portfolios. In the present paper, we aim to further contribute to the growing literature on the field by applying a method not previously tested on the Brazilian market. We build portfolios sorted by the price-to-earnings and price-to-book ratios alone and by a combination of both in order to assess value and growth stocks' risks and returns on the Brazilian stock market between 1989 and 2009. Furthermore, our risk analysis may be regarded as the paper's main contribution, since its approach departs from conventional risk concepts, as we not only test for beta: portfolios' returns are measured under different economic conditions. Results support a pervasive value premium in the Brazilian stock market. Risk analysis shows that this premium holds under every economic condition analyzed, suggesting that value stocks are indeed less risky. Beta proved not to be a satisfactory risk measure. Portfolios sorted by the price-to-earnings ratio yielded the best results.

Applicability of the Newcomb-Benford Law on Inspections Service Tax - ISS

ID: 6420

Authors: Umbelina Cravo Teixeira Lagioia, Ivson José Caldas de Araújo, Bartolomeu de Figueiredo Alves Filho, Marcelo Andrade Bezerra Barros, Suênia Graziella Oliveira de Almeida Santos do Nascimento.

Source: Revista Contabilidade & Finanças, v. 22, n. 56, p. 203-224, May-August, 2011. 22 page(s).

Keyword: Digital Audit of ISS , Fundraising Increment , Model Newcomb Benford's law

Document type: Article (Portuguese) Show Abstract

This paper verifies the applicability of the digital audit in service companies, contributing to the immediate improvement of tax management. This research is considered relevant due to the opportunity to specialize the Auditors in carrying out their tasks and in other fields of endeavor, prominently in public expenditure. Through a mathematical model - Newcomb-Benford's law -irregularities could be identified in companies, as an important tool to plan audits. This interdisciplinary research is also important due to the unedited application of this method to Service Tax. The case study strategy was used, with detailed analyses of companies inspected in 2005 and 2006. The qualitative approach was applied to better understand the functioning of the Supervision Department's organizational structure, collecting data through documentary analysis and unstructured interview. Using the quantitative approach, adherence to the model was verified, which signaled deviations. The documentary analysis, interviews and model tests acted in a constant information triangulation process. The results suggest: adherence to ISS supervision model; importance of putting the method in practice in other areas; urgent need to promote changes in forms and rules to audit firms, as well as in the dissemination of these results to Brazilian cities, mainly because no new investments are demanded, in view of scarce resources in public administration. Finally, a national research agenda is suggested to enhance tax management.