AN ACCOUNTING REGULATION ANALYSIS THROUGH THE LENS OF MIGUEL REALE’S TRIDIMENSIONAL THEORY OF LAW

Authors

  • Ricardo Lopes Cardoso Fundação Getulio Vargas, Escola Brasileira de Administração Pública e de Empresas
  • Marcelo Adriano Silva Fundação Getulio Vargas, Escola Brasileira de Administração Pública e de Empresas
  • Poueri do Carmo Mário Universidade Federal de Minas Gerais, Faculdade de Ciências Econômicas
  • Sérgio de Iudícibus Pontifícia Universidade Católica de São Paulo, Mestrado em Ciências Contábeis

DOI:

https://doi.org/10.4270/ruc.20106

Keywords:

Regulation, Tridimensional Theory, Fact. Rule, Value.

Abstract

One of the most relevant challenges that accounting community (regulators, academics, prepares e auditors of financial reports) faces nowadays is regarding the design of accounting standards, in order to provide a faithful representation of a company's economic and financial position to stakeholders. In this context, accounting regulation is crucial on professionals' skills improvement and on shaping accounting practices to meet the stakeholders expectations related to the quantity and the quality of the accounting information. This is the most relevant reason for the actual process of changes on the Brazilian Financial Reporting Standards. Those changes include: the creation of Comitê de Pronunciamentos Contábeis (CPC, the Brazilian Financial Accounting Standards Board), the edition of the Laws n° 11.638/07 and 11.941/09, and of a set of accounting standards by the Comissão de Valores Mobiliários (CVM, the Brazilian Securities & Exchange Commission). While an interdisciplinary theoretical proposition, this paper suggests that Miguel Reale's Tridimensional Theory of Law is helpful in understanding the financial accounting regulation process. According to Reale, the rule (law) is a consequence of the dialectic relationship among fact, value and rule, through the intervention of an entity with authority (power). Financial and economic fact (and events) that affect a company's performance are analyzed by an entity with authority (CPC for instance) based on the values shared by the society (e.g., comprehensiveness, relevance, confidence, comparability), and from there rules (accounting standards) are developed.

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Author Biographies

Ricardo Lopes Cardoso, Fundação Getulio Vargas, Escola Brasileira de Administração Pública e de Empresas

Prof. Adjunto EBAPE/FGV

Prof. Adjunto FAF/UERJ

Marcelo Adriano Silva, Fundação Getulio Vargas, Escola Brasileira de Administração Pública e de Empresas

Mestre em Administração EBAPE/FGV

Poueri do Carmo Mário, Universidade Federal de Minas Gerais, Faculdade de Ciências Econômicas

Prof. Adjunto FACC-UFMG

Sérgio de Iudícibus, Pontifícia Universidade Católica de São Paulo, Mestrado em Ciências Contábeis

Professor do Mestrado em Ciências Contábeis e Financeiras da Pontifícia Universidade Católica de São Paulo - PUCSP e Professor Titular Aposentado e Emérito da Universidade de São Paulo

Published

2010-02-03

How to Cite

Cardoso, R. L., Silva, M. A., Mário, P. do C., & de Iudícibus, S. (2010). AN ACCOUNTING REGULATION ANALYSIS THROUGH THE LENS OF MIGUEL REALE’S TRIDIMENSIONAL THEORY OF LAW. Revista Universo Contábil, 6(1), 06–27. https://doi.org/10.4270/ruc.20106

Issue

Section

National Section