Comparison of Brazilian and international accounting standards for patrimonial equivalence

  • Vinícius Silva Pereira Universidade Federal de Uberlândia; Faculdade de Ciências Contábeis
  • Wanderson Luiz de Paula Universidade Federal de Uberlândia; Faculdade de Ciências Contábeis
  • Márcio Alexandre Fischer Universidade Luterana do Brasil
  • Sirlei Lemes Universidade Federal de Uberlândia; Faculdade de Ciências Contábeis
Keywords: Equivalence Patrimonial Method, Not-carried-through-profit, National and international accounting standards

Abstract

Efforts for the convergence of Brazilian standards towards international accounting standards are well known. However one of the persisting difficulties is the measurement of permanent investments according to the Patrimonial Equivalence Method (PEM). This research analyzed the differences between the calculation of the patrimonial equivalence according to CVM and the IASB and Law 6.404/1976 as well as the impact on company net profit, dividend distribution and net equity in order to find the most coherent treatment. Evaluation methods and differences in the recognition and measurement of permanent investments according to both standards were presented followed by an example simulating these approaches. Exploratory, documentary and qualitative research was used for this purpose. The difference found in the PEM was related to the treatment of not-carried-through-profit that affected net profit, dividend distribution and net equity. The most coherent treatment of the not-carried-through-profit was according to the CVM.

Downloads

Download data is not yet available.
Published
2006-01-01
How to Cite
Pereira, V., Paula, W., Fischer, M., & Lemes, S. (2006). Comparison of Brazilian and international accounting standards for patrimonial equivalence . REGE Revista De Gestão, 13(spe), 45-62. https://doi.org/10.5700/issn.2177-8736.rege.2006.36541
Section
Finanças