BIOLOGICAL ASSETS IN VALUE ADDED STATEMENT: DISCLOSURE ANALYSIS IN BRAZIL
DOI:
https://doi.org/10.11606/rco.v9i23.88025Keywords:
Value Added Statement, Biological Assets, DisclosureAbstract
The Value Added Statement (VAS) is an accounting statement that shows the wealth created by the entity and how this wealth is distributed. Its disclosure became mandatory by public companies in Brazil since 2008. The objective of this paper is to study how the fair value measurements of biological assets have been disclosed in VAS. These assets were chosen because, since 2010, Brazil has adopted the International Financial Reporting Standards (IFRS), and the biological assets had to be measured at fair value since then. Using Fipecafi data base, all the companies that had carrying amount of biological assets in its Balance Sheets and, at the same tame, disclosed the VAS were selected. Using this criterion, 54 companies were selected and only 39 adopted fair value to measure its biological assets. The results revealed that the large majority of the sampled companies that measured these kind of assets at fair value did not evidence clearly these effects in VAS (32 cases) and the few companies that did it used distinct classifications, for example, presenting it in a specific line inside revenue group, or using the ‘other revenues’ line (as determined by the Brazilian Accounting Standard n.9), or even after depreciation and before value added received by transfer. These results show to preparers and auditors the need for a better presentation of this information in VAS and highlight to users the need for special care in analyzing and interpreting the disclosed information in VAS. The empirical evidences may motivate the Brazilian Committee of Accounting Pronouncements to review its pronouncements in order to clarify the treatment of fair value gains and losses in VAS.Downloads
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