ADOPTION OF FAIR VALUE FOR BIOLOGICAL ASSETS: ANALYSIS OF ITS RELEVANCE IN BRAZILIAN COMPANIES
DOI:
https://doi.org/10.4270/ruc.20139Keywords:
Fair Value. Historical Cost. Biological assets. International ConvergenceAbstract
In 2009, the Accounting Pronouncements Committee (CPC) approved the CPC 29 accounting standards (Biological Assets and Agricultural Products). The CPC 29 expose the accounting treatment for biological assets and agricultural products, bringing the use of fair value rather than historical cost in accounting measurement. That is the context for this article, which aims to analyze the relevance of adopting the fair value of biological assets and its impact on equity. Therefore, it analyzes the question about the value relevance of biological assets measured at historical cost and fair value, as well the impact of the change in measurement basis on equity for the years 2008 and 2009, of the companies listed on the BM&FBOVESPA. Empirical evidence supports that the adoption of the fair value caused significant changes in the values of biological assets and equity. Evidence also suggests that biological assets valued at historical cost were evidenced with underestimated values by accounting. A plausible explanation for this finding is the fact that over time, the historical cost is not likely to reflect the ability of the economic benefit, limited to the face value at the date of acquisition or production.
Downloads
References
ARGILES, J. M.; BLADÓN, J. G.; MONLLAU, T. Fair Value Versus Historic Cost Valuation for Biological Assets: Implications for the quality of financial information, Barcelona, Espanha. Working Paper, 2009. Disponível em: <http://edirc.repec.org/data/feubaes.html>. Acessado em 07 Jan. 2012.
BALL, R.: BROWN, P. An empirical evaluation of accounting income numbers. Journal of Accounting Research, v. 6, p. 159–177, 1968. http://dx.doi.org/10.2307/2490232
BARTH, M. E.; BEAVER, W. H.; LANDSMAN, W. R. The relevance of value relevance literature for financial accounting standard setting: another view. Journal of Accounting and Economics, v. 31, p. 77-104, 2001. http://dx.doi.org/10.1016/S0165-4101(01)00019-2
BARTH, M. E.; LANDSMAN, W. R.; LANG, M. H. International accounting standards and accounting quality. Journal of Accounting Research, v.46, p.467-498, 2008. http://dx.doi.org/10.1111/j.1475-679X.2008.00287.x
BARTH, M. et al. Value Relevance of Banks’ Fair Value Disclosures under SFAS 107. The Accounting Review, v. 71, p. 513-537, 1996.
BEAVER, W. H. Perspectives on recent capital market research. The Accounting Review, v.77, n. 2, p. 453-474, 2002. http://dx.doi.org/10.2308/accr.2002.77.2.453
BEAVER, W. The information content of annual earnings announcements. Journal of Accounting Research, v. 6, p. 67–92, 1968. http://dx.doi.org/10.2307/2490070
BROOKS, C. Introductory econometrics for finance. Cambridge: Cambridge University Press, 2002.
BROWN, S.; LO, K.; LYS, T. Use of R2 in accounting research: measuring canges in value relevance over the last four decades. Journal of Accounting and Economics, v. 28, p. 83-115, 1999. http://dx.doi.org/10.1016/S0165-4101(99)00023-3
CALLAO, S.; JARNE, J. I.; LAÍNEZ, J. A. Adoption of IFRS in Spain: effect on the comparability and relevance of financial reporting. Journal of Accounting, Auditing and Taxation, v. 16, n. 2, p. 148-178, 2007. http://dx.doi.org/10.1016/j.intaccaudtax.2007.06.002
COLLINS, D.; MAYDEW, E.L.; WEISS, L. Changes in the value relevance of earnings and book value over the past forty years. Journal of Accounting and Economics, v. 24, p. 39-67, 1997. http://dx.doi.org/10.1016/S0165-4101(97)00015-3
Comitê de Pronunciamentos Contábeis (CPC). Pronunciamento Técnico CPC 29 –Ativos Biológicos e Produtos Agrícolas. Disponível em: .Acesso em 20 Jan 2012.
CORDAZZO, M. The impact of IAS/IFRS on accounting practices: evidence from Italian listed companies. 2007. Disponível em: <http://www.hec.unil.ch/urccf/seminar/Michela%20%20%20Dec07.pdf>. Acessado em 07 Jan. 2012.
COSTA, F. M.; LOPES, A. B. Ajustes aos US-GAAP: estudo empírico sobre sua relevância para empresas brasileiras com ADRs negociadas em bolsa de Nova Iorque. Revista Contabilidade & Finanças, Edição 30 anos de Doutorado, p. 45-57, 2007.
ECCHER, E et al. Fair value disclosures by bank holding companies. Journal of Accounting and Economics, v. 22, p. 79-117, 1996. http://dx.doi.org/10.1016/S0165-4101(96)00438-7
ELAD, C.; HERBOHN, K. Implementing Fair Value in the Agricultural Sector. Scotland: SATER, Working Paper, 2011. Disponível em: <http://papers.ssrn.com/sol3/papers.cfm?abstract_id=599741>. Acessado em 07 Jan. 2012.
FÁVERO, L. P. et al. Análise de Dados: Modelagem Multivariada para Tomada de Decisões. 1. ed. Rio de Janeiro: Campos Elsevier, 2009.
FIORAVANTE, A. C; et al.: Ativo Biológico e Produto Agrícola. In: ERNEST&YOUNG; FIPECAFI. Manual de normas internacionais de contabilidade: IFRS versus normas brasileiras. São Paulo: Atlas, 2010.
GUJARATI, D. N. Econometria Básica. 3. Ed. São Paulo: Makron Books, 2000.
HENDRIKSEN, E. S.; BREDA, M. F. V. Teoria da contabilidade. São Paulo: Atlas, 1999.
HOLTHAUSEN, R.; WATTS, R. The relevance of the value-relevance literature for financial accounting standard setting. Journal of Accounting and Economics, v. 3, p. 3-75, 2001. http://dx.doi.org/10.1016/S0165-4101(01)00029-5
HUNG, M.; SUBRAMANYAM, K. R. Financial statement effects of adopting international accounting standards: the case of Germany. Review of Accounting Studies, v.12, p. 623-657, 2007. http://dx.doi.org/10.1007/s11142-007-9049-9
IASC – INTERNATIONAL ACCOUNTING STANDARDS COMMITTEE. Exposure draft E65 – Agriculture, 1999.
INSTITUT DER WIRTSCHAFTSPRÜFER (IDW). Comments on E65, “Agriculture”. In: International Accounting Standards Board. Germany, 2000. Disponível em: <http://www.iasb.org.uk>. Acesso em 20 Jan 12.
INTERNATIONAL ASSOCIATION OF FINANCIAL EXECUTIVES INSTITUTES (IAFEI). Comments on E65, “Agriculture”. In: International Accounting Standards Board, 2000.Disponível em: <http://www.iasb.org.uk>. Acesso em 30 Dezembro 05.
IUDÍCIBUS, S. Teoria da Contabilidade. 10ª. Ed. São Paulo: Atlas, 2010.
KADRI, M. H.; AZIZ, R. A.; IBRAHIM, M. K. Value relevance of book value and earnings: evidence from two different financial reporting regimes. Journal of Financial Reporting & Accounting, v. 7, n. 1, p. 1-16, 2009. http://dx.doi.org/10.1108/19852510980000638
KALLAPUR, Sanjay; KWAN, Sabrina Y. S. The Value Relevance and Reliability of Brand Assets Recognized by U.K. Firms. The Accounting Review, v. 79, n.1, p. 151-172, 2004. http://dx.doi.org/10.2308/accr.2004.79.1.151
KAM, V. Accounting Theory. California: Jonh Wiley & Sons, 1986.
KOTHARI, S. P. Capital markets research in accounting. Journal of Accounting and Economics, v. 31, p. 105-231, 2001. http://dx.doi.org/10.1016/S0165-4101(01)00030-1
LANDSMAN, W. R. Fair value accounting for financial instruments: some implication for bank regulation. Workshop on Accounting Risk Management and Prudential Regulation, BIS, Basiléia, 2005.
LIMA, J. B. N. A relevância da informação contábil e o processo de convergência para as normas IFRS no Brasil. 2011. Tese (Doutorado em Ciências Contábeis) – Programa de Pós- Graduação em Controladoria e Contabilidade, FEA/USP, São Paulo, 2010.
LIPE, R. Fair Valuing Debt Turns Deteriorating Credit Quality into Positive Signals for Boston Chicken. Accounting Horizons, v.16, v.2, p. 169-181, 2002.
LOPES, A. B.; IUDÍCIBUS, S. (Coordenadores). Teoria Avançada da Contabilidade. 2ª. Ed. São Paulo: Atlas, 2012.
MACEDO, A. S. M., et al. Análise do Impacto da Substituição da DOAR pela DFC: um estudo sob a perspectiva do value-relevance. Revista de Contabilidade & Finanças – USP, v. 22, n. 57, p. 299-318, 2011.
MAROCO, J. Análise Estatística com a utilização do SPSS. 3ª Ed. Silabo. Lisboa, 2007.
MARTINS, G. Manual para elaboração de monografias e dissertações. 3 ed. São Paulo: Atlas, 2002.
MORAIS, A. I.; CURTO, J. D. Accounting quality and the adoption of IASB Standards – Portuguese Evidence. Revista Contabilidade & Finanças, v.19, n. 48, p. 103-111, 2007. http://dx.doi.org/10.1590/S1519-70772008000300009
NESTLÉ. Comments on E65, “Agriculture”. In: International Accounting Standards Board. Swetzerland, 2000. Disponível em: <http://www.iasb.org.uk>. Acesso em 20 de Janeiro de 2012.
NISKANEN, J.; KINNUNEN, J.; KASANEN, E. A note on the information content of parent company versus consolidated earnings in Finland. European Accounting Review, v. 7, p. 31-40, 1998. http://dx.doi.org/10.1080/096381898336565
PERRAMON, J.; AMAT, O. IFRS introduction and its effect on listed companies in Spain. [S.I.: s.n.], 2006. Disponível em: <http://ssrn.com/abstract=1002516>. Acesso em: 7 de Janeiro de 2012.
POON, W. W. Using fair value accounting for financial instruments. American Business Review, v.22, n.1, 2004.
SANTOS, E. S.; CALIXTO, L. Impactos do Início da Harmonização Contábil Internacional (Lei 11.638/07) nos Resultados das Empresas Abertas. RAE Eletrônica, v. 9, n. 1, 2010.
STERGIOS, A.; ATHANASIOS, V,; NIKOLAOS, D. Financial Statement effects of adopting internacional acounting standards: the case of Greece. Working Paper, University of Macedonia, 2007. Disponível em: <http://web.xrh.unipi.gr/hfaa/files/A21.pdf>. Acessado em 07 Jan. 2012.
SULZER – Switzerland. Comments on E65, “Agriculture”. In: International Accounting Standards Board, 2000. Disponível em: <http://www.iasb.org.uk>. Acesso em 20 Jan 12.
YANG, Ziyun; ROHRBACH, Kermit; CHEN, Shimin. The Impact of Standard Setting on Relevance and Reliability of Accounting Information: Lower of Cost or Market Accounting Reforms in China. Journal of International Financial Management & Accounting, v. 16, n. 3, p. 194-228, 2005. http://dx.doi.org/10.1111/j.1467-646X.2005.00117.x
Published
How to Cite
Issue
Section
License
The copyright for papers published in this journal belong to the author, with rights of first publication for the journal. As the papers appears in this publicly accessed journal, the papers are for free use, receiving their credit, in educational and non-commercial uses. The journal will allow the use of the papers published for non-commercial purposes, including the right to send the paper to publicly accessed databases.
