Accounting divergencies in interest on self-owned capital in steel companies from 2001 to 2003: case studies

  • Sidnei Celerino da Silva Unioeste
  • Marcos Roberto Pinto Instituto Brasileiro de Administração Municipal
  • Ana Carolina de Gouvêa Dantas Motta Instituto Brasileiro de Administração Municipal
  • José Augusto Veiga da Costa Marques UFRJ; IE
Keywords: Interest on Self-owned Capital, Investor Remuneration, Income and Dividend Distribution, Selfowned Capital, Fiscal Savings

Abstract

Justifications for interest on self-owned capital were shown to follow two tendencies among accountants and analysts. In one it may be a substitute for monetary correction in accounting for fiscal purposes. The second seeks to provide isonomic treatment between interest on self-owned capital and that of third parties. Differences between Brazilian tax authorities and the security and exchange commission on the subject were also identified. Some authors state that Law 9.430/96 made distribution of remunerative interest on self-owned capital as dividends, more attractive depending upon the nature of the beneficiary's revenues. Finally, practical application of the pertinent Laws 6.404/76 and 9.249/95 in the publicly traded "Companhia Siderurgica Nacional", "Metalúrgica Gerdau" and "Belgo-Mineira" steel companies between 2001 and 2003 revealed discrepancies in relation to tax and corporate legislation.

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Published
2006-06-01
How to Cite
Silva, S., Pinto, M., Motta, A., & Marques, J. (2006). Accounting divergencies in interest on self-owned capital in steel companies from 2001 to 2003: case studies . REGE Revista De Gestão, 13(2), 37-54. https://doi.org/10.5700/issn.2177-8736.rege.2006.36557
Section
Finanças