Study of the comparability level of partial adjustments in USGAAP and BRGAAP
DOI:
https://doi.org/10.11606/rco.v2i3.34711Keywords:
BRGAAP, USGAAP, reconciliations, comparabilityAbstract
The objective of this study is to analyze the level of comparability of Brazilian companies that report their results in accordance with USGAAP through the identification and evaluation of the principal adjustments to profit and liquid assets from accounting reports (2000 to 2006) in accordance with the two sets of standards: BRGAAP and USGAAP. The research was developed through the following steps: quantification of the adjustments from the accounting reports, summarizing the adjustments in table form and determining the level of comparability between adjustments and between reported profits. Calculations were made at two points (2000 and 2006) to determine if the numbers generated by the two standards had converged during that seven year period. This study is characterized as exploratory and data collection was from document research. Classification of adjustments followed those of UCIEDA (2003) and the level of comparability of the adjustments was calculated using the Gray Comparability Index (1980). It was shown that the adjustments that had the greatest effect on the reconciliations analyzed were Business Combination and Intangibles. Additionally, it was demonstrated that the majority of companies did not have adjustments comparable to 5% and 10% materiality indicating significantly different measurements of liquid profit/loss determined by BRGAAP and USGAAP. This study was limited by the number of years researched, because research was from documents and therefore dependent on the reliability of the information disclosed by the companies and also for incomplete conversion of the accounting reports because contact was not established with the companies.Downloads
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