An analysis of profit and loss in Brazil before and after the full adoption of the International Financial Reporting Standards

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Artigo
Data de publicação
2014
Periódico
International Journal of Accounting, Auditing and Performance Evaluation
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0
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Gallego-Alvarez I.
Pelucio-Grecco M.C.
Formigoni H.
Geron C.M.S.
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This study aims to determine whether the main items of the profit and loss (P&L) accounts of listed Brazilian companies have been modified, according to sector, after Brazil's adoption of the International Financial Reporting Standards (IFRS). The sample is composed of 118 companies classified by the Securities and Exchange Commission of Brazil (SECB) as corporate governance for the year before (2007) and the year after (2010) the implementation of IFRS. The analysis is based on the interpretation of biplots developed by Gower and Hand. The study concludes that a change did occur in the P&L accounts in the periods studied, which is substantiated by an analysis of the evolution of the national added value and explained by the application of new IFRS. This suggests that, unless there has been a significant alteration of performance in all sectors of the economy, the confrontation between P&L in Brazil has undergone significant changes in the different sectors of the economy after the full adoption of IFRS.. Copyright © 2014 Inderscience Enterprises Ltd.
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