DISCLOSURE OF THE ACCOUNTING INFORMATION ABOUT DEPRECIATION: BEFORE AND AFTER THE ADOPTION OF THE IFRS

With the adoption of the IFRS, it was expected that the Accounting would get closer to its economic essence. However, some studies point to the existence of evidences of the permanence of the use of certain practices of the previous Accounting. Therefore, the main goal of this study was to analyze t...

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Published inRevista universo contábil Vol. 11; no. 2; pp. 153 - 173
Main Authors Telles, Samantha, Salotti, Bruno
Format Journal Article
LanguageEnglish
Portuguese
Published Blemenau Ilse Maria Beuren 30.06.2015
Subjects
Accounting
Accounting standards
Accumulated depreciation
Corporate finance
Depreciation
Disclosure
Financial statements
International Financial Reporting Standards
Stock exchanges
Studies
Brazil
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Summary:With the adoption of the IFRS, it was expected that the Accounting would get closer to its economic essence. However, some studies point to the existence of evidences of the permanence of the use of certain practices of the previous Accounting. Therefore, the main goal of this study was to analyze the evolution of the disclosure and presentation, in the annual financial statements, of the information about the depreciation of property, plant and equipment in Brazil. To do so, Content Analysis was used in financial statements of 74 public companies listed in BM&FBOVESPA from 2006 to 2012. The results have shown that the tax rates levels of use were bigger before the adoption of the new rules, but some companies already used other rates in this period. After the adoption, the presentation method of average rates began to be used more frequently. Over the years, the depreciation rates almost did not change in all the analyzed assets groups. However, before and after the adoption of the IFRS, some companies did not present the mandatory information, even with the requirement of the existing rules. It was also verified that before the IFRS, the accumulated depreciation was presented in the calculus of the net value of property, plants and equipment; and after, it began to be presented inside the reconciliation of the carrying amount, alongside with the depreciation. It is possible to conclude that the Notes about depreciation had suffered considerable changes, especially after the adoption of the IFRS, but residues of the previous culture remain.
ISSN:1809-3337
1809-3337
DOI:10.4270/ruc.2015216