Level of adherence of the brazilian listed companies of the telecommunications sector to the accounting pronouncement CPC 47

Authors

DOI:

https://doi.org/10.21680/2176-9036.2020v12n1ID19615

Keywords:

CPC 47, adherence, compliance, telecommunications.

Abstract

Purpose: The present work sought to analyze the level of compliance of the Brazilian companies in the telecommunications sector listed in B3 to accounting pronouncement CPC 47.

Methodology: A checklist was elaborated containing 8 (eight) criteria in which companies should disclose in order to obtain a high level of compliance with CPC 47. It’s characterized as a documentary research with analysis of content over the consolidated financial statements (balance sheet and income statement), explanatory notes and management reports published by the companies in the years 2017 and 2018.

Results: The results show that no company presented adherence to the new standard. The company Telefonica Vivo Brazil was the one with the highest level, 56.25%, while Telebras presented the lowest, 29.16%. In addition, it was checked whether the companies already disclosed their information in accordance with the standard before it became mandatory, as a voluntary disclosure. The companies OI S.A., Telebras and Algar Telecom did not mention CPC 47 in the first three quarters of 2017. On the other hand, Telefonica Vivo Brazil and TIM Holdings alluded to the norm since the first period analyzed.

Contributions of the Study: It’s a current topic in accounting research because it’s the year of implementation of CPC 47, and relevant, as it will bring significant changes in the recognition and disclosure criteria of revenues. From the literature review, few studies have been done dealing with the topic. From this, this research sought to contribute to expand the list of works produced on the new CPC, with a quantitative approach, in the lines of accounting disclosure and regulation.

Downloads

Download data is not yet available.

References

Arbel, A., & Strebel, P. (1982). The neglected and small firm effects. The Financial Review, 17(4), 201 – 218.

Backes, R. G., Ott, E., & Wiethaeuper, D. (2005). Disclosure of intellectual capital: content analysis of management reports of Brazilian public companies. Proceedings of the National Meeting of ANPAD – ENANPAD, 29.

Bardin, L. (1977). Content analysis. Publishing House 70. Lisbon.

Beckman, J., & Koczan, M. (2006). The FASB’s Revenue Recognition Project: Pervasive Issues In Long-Term Contract Accounting. Construction Contract & Taxation. v. 16, n. 4, p. 35-40, jul./ago.

Bilhim, J., Amaro, F., & Moreira, C. D. (2010). Research project. Social and Political Sciences Methodology Manual, 7-22.

Securities Commission. CVM Resolution no. 29 of February 5, 1986 (1986). Approves and endorses the pronouncement of the Brazilian Institute of Accountants - IBRACON, on the Basic Conceptual Framework of Accounting. Rio de janeiro Brazil. Retrieved on November 30, 2018 from www.cvm.gov.br/legislacao/deliberacoes/anexos/0001/deli029.pdf.

Securities Commission. CVM Resolution no. 762, December 22, 2016 (2016). Approves technical pronouncement CPC 47 of the Accounting Pronouncements Committee, which deals with revenue from contract with the customer. Rio de janeiro Brazil. Retrieved on November 29, 2018 from http://www.cvm.gov.br/legislacao/deliberacoes/deli0700/deli762.html.

Accounting Pronouncements Committee. Technical Pronouncement CPC 00 - Conceptual Framework for the preparation and disclosure of the Financial Report, December 15, 2011 (2011). Prepared in correlation with international accounting standards - The Conceptual Framework for Financial Reporting (IASB - BV 2011 Blue Book). Sao Paulo, Brazil.

Accounting Pronouncements Committee. Technical Pronouncement CPC 47 - Customer Contract Revenue, December 22, 2016 (2016). Prepared from IFRS 15 - Revenue from contracts with customers. Sao Paulo, Brazil.

Federal Council of Accounting. Brazilian Accounting Standard NBC TG n. 47 - CFC, November 25, 2016 (2016). Deals with revenue from contract with customer. Brasilia DF. Retrieved October 6, 2018 from http://www2.cfc.org.br/sisweb/sre/detalhes_sre.aspx?Code=2016/NBCTG47&file=NBCTG47.doc.

Cova, C. J. G. (2016). The Impacts of the Assimilation of the International Financial Reporting Standard (IFRS 15), which deals with the Recognition of Revenue from Contracts with Customers, and its Asymmetric Effects on the Financial Statements of Brazilian Companies. Thinking Accounting, 17 (64).

Dantas, J. A., Zendersky, H. C., & Niyama, J. K. (2004). The duality between the benefits of disclosure and the reluctance of organizations to increase the degree of disclosure. In: Proceedings of ENANPAD, 28., Curitiba, Brazil.

Diehl, A. A., & Tatim, D. C. (2004). Applied social science research: methods and techniques. Pearson Brazil.

Dye, R. A. (2001). An evaluation of “essays on disclosure” and the disclosure literature in accounting. Journal of accounting and economics, 32(1-3), 181-235.

Falcão, D. F., Niyama, J. K., & Pinto, L. J. (2014). Real Estate Sales Revenue Recognition: A Study of the Largest Brazilian S / A's in the Residential Market. Accounting Journal of the Master of Accounting Sciences at UERJ (online), Rio de Janeiro, v. 19, no. 1, p. 26 - p. 41, Jan / Apr

Gil, A. C. (2002). How to design research projects. Sao Paulo, 5(61), 16-17.

Gonçalves, R. D. S. (2011). Social Disclosure and Cost of Equity in Brazilian Public Companies. Doctoral Thesis in Accounting, Multi-institutional and Interregional Postgraduate Program in Accounting, UnB, UFPB, UFRN, Brasilia, Brazil.

Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of accounting and economics, 31(1-3), 405-440.

IASB. (2016). IFRS 15 - Revenue from Contracts with Customers. IFRS Green Book 2016 Part A, A729–A794.

KPMG International Standards Group. (2014). Featured IFRS 02/14: First Impressions - IFRS 15 - Revenue from Contracts with Customers. Retrieved November 30, 2018 from www.kpmg.com/BR.

Lanzana, A. P. (2004). Relationship between disclosure and corporate governance of Brazilian companies. Master dissertation in Accounting. University of Sao Paulo, USP. Sao Paulo Brazil.

Lima, G. A. S. F., Fonseca, J. A. S., & Brito, G. A. S. (2009). Conservatism in the accounting results of banks in Portugal. In USP Congress of Accounting and Controlling (Vol. 9).

Malhotra, N. K., Kim, S. S., & Patil, A. (2006). Common method variance in IS research: A comparison of alternative approaches and a reanalysis of past research. Management science, v. 52, n. 12, p. 1865-1883.

McConnell, P. (2014). Revenue recognition: finally, a Standard approach for all. Investor Perspectives, London: IFRS Foundation, jun.

Niyama, J. K., Cavalcante, P. R. N., & Rezende, I. C. C. (2010). Brazilian, North American and International Accounting Standards applicable to the Civil Construction sector: a comparative analysis in a company from the State of Paraíba. In IV ANPCONT Congress.

Sousa, F. C. O de., Mapurunga, P. V. R., & Ponte, V. M. R. (2014). Disclosure Compliance Relative to present value adjustment in companies listed on Bm & Fbovespa. Journal of Accounting and Organizations, 8 (21), 14-24.

Mota, R. H. G. M., Campos, S. J. de B., Niyama, J. K., & Paulo E. (2012). Revenue recognition in real estate construction contracts: a study by Exposure Draft ED / 2010/6 - Revenue from contracts with clients. Accounting Journal of the Master of Accounting Sciences at UERJ (online), Rio de Janeiro, v. 17, no. 2, p. 89-103, May / Aug.

Oliveira, R. X. D. (2016). Market Analyst Coverage and social disclosure in open Brazilian companies. Completion of course work. Bachelor of Accounting Sciences. University of Brasilia, Brasilia, DF.

Oliveira, R. X. D., Gonçalves, R. D. S., Medeiros, O. R. D., & Fernandes, B. V. R. (2018). Coverage of market analysts and social disclosure: evidence in publicly traded Brazilian companies. Advances in Scientific and Applied Accounting, v. 11, no. 1, p. 024-046.

Oncioiu, I., & Tãnase, A. E. (2016). Revenue from contracts with customers under IFRS 15: new perspectives on practice. Business Administration and Business Economics, v.2, n.35.

Quinteiro, L. G. D. L., & Medeiros, O. R. (2005). Accounting disclosure and volatility of stock returns in Brazil. Proceedings of XXIX ENANPAD.

Rodrigues, H. S. (2014). Effects of analyst follow-up and double listing on voluntary disclosure during the IFRS convergence process in Brazil. Master dissertation in Accounting. Federal University of Espirito Santo. Vitória, ES.

Rutledge, R. W., Karim, K. E., & Kim, T. (2016). The FASB’s and IASB’s New Revenue Recognition Standards: What Will Be The Effects on Earnings Quality, Deferred Taxes, Management Compensation, and on Industry-Specific Reporting? Journal of Corporate Accounting & Finance, v. 27, n. 6, ago.

Severiano, L. S., de Alencar, R. C., & Garcia, E. A D. R. (2017). Adoption of IFRS 15 - Revenue from contracts with customers in Brazilian companies: main obstacles. Applied Social Sciences in Review, 17 (32), 146-166.

Silva, A. S. D. (2018). The impacts of IFRS 15 on transportation companies. Completion of course work. Bachelor of Accounting Sciences. Federal University of Uberlândia, Uberlândia, Brazil.

Souza, E.T., Souza, C.A., & Dalfior, V.A.O. (2015). The impact of IFRS 15 - Revenue from customer contracts on the financial statements of Brazilian companies. IN: Proceedings of the Management and Technology Excellence Symposium, October 28-30, 2015, Rio de Janeiro. Rio de Janeiro / RJ: XII SEGET.

Tavares, M. F. N., Anjos, L. C. M. D., & Paulo, E. (2014). Contributions submitted to the IASB / FASB regarding Revenue Recognition Draft Revision. Contemporary Journal of Economics and Management, 12 (3), 35-63.

Tavares, T. N. (2016). The implementation of IFRS 15 in Brazil: analysis of changes in processes and internal controls for revenue recognition in construction contracts. Dissertation presented to the Graduate Program in Accounting from Mackenzie Presbyterian University.

TEIXEIRA, S. C. (2010). The relationship between the adoption of corporate governance best practices and the level of disclosure. 103 p. Dissertation (Master in Controlling and Accounting) - Postgraduate Program in Controlling and Accounting, University of Sao Paulo, Sao Paulo.

Telebrasil - Brazilian Telecommunications Association (2018). The performance of the telecommunications sector in Brazil. Rio de janeiro Brazil. Retrieved on November 29, 2018, from http://www.telebrasil.org.br/panorama-do-setor/deemformance-do-setor.

Verrecchia, R. E. (2001). Essays on disclosure. Journal of accounting and economics, 32(1-3), 97-180.

Yamamoto, M. M., & Salotti, B. M. (2006). Accounting information: studies about its disclosure in the capital market. Sao Paulo: Atlas.

Downloads

Published

03-01-2020

How to Cite

RAFAEL XAVIER DE OLIVEIRA; THAIS MOTA CRABBI; JOMAR MIRANDA RODRIGUES. Level of adherence of the brazilian listed companies of the telecommunications sector to the accounting pronouncement CPC 47. REVISTA AMBIENTE CONTÁBIL - Universidade Federal do Rio Grande do Norte, [S. l.], v. 12, n. 1, 2020. DOI: 10.21680/2176-9036.2020v12n1ID19615. Disponível em: https://periodicos.ufrn.br/ambiente/article/view/19615. Acesso em: 8 nov. 2024.

Issue

Section

Section 7: International (S7)