Earnings Management and Valuation of Biological Assets
Autor(a) principal: | |
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Data de Publicação: | 2015 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng por |
Título da fonte: | BBR. Brazilian Business Review (English edition. Online) |
Texto Completo: | http://www.bbronline.com.br/index.php/bbr/article/view/131 |
Resumo: | The use of fair value to measure the worth of biological assets allows discretionary choices when using discounted cash flow in the absence of an active market, influencing the quality of accounting information. The objective of this study was to investigate evidence of earnings management among Brazilian companies that have adopted fair value based on the discounted cash flow method. The firms were investigated with regard to: a) disclosure of the discount rate, b) BM&FBovespa corporate governance levels; and c) adherence to disclosure requirements in the Brazilian accounting standard CPC 29 (IAS 41). We analyzed 31 firms with significant biological assets from 2010 to 2012. The earnings management measurements were calculated according to the modified Jones, the Teoh, Welch and Wong (1998), and the KS models. The Mann-Whitney test of the means was applied and revealed evidence of greater earnings management for companies that use discounted cash flow, and the ones that least meet CPC 29 disclosure requirements, considering the KS model estimates. Regarding the other proposals, testing did not offer enough evidence of differences in discretionary accruals. In this sense, only hypotheses 1 and 4 are partially accepted, demanding more research in this area. We also present evidence in favor of adopting Exposure Draft ED/2013/08 Agriculture: Bearer Plants, Proposed amendments to IAS 16 and IAS 41, which proposes to measure biological assets at cost, because firms already following these rules showed lower earnings management in this study. |
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Earnings Management and Valuation of Biological AssetsGerenciamento de Resultados e Valorização dos Ativos BiológicosEarnings managementBiological assetsAgricultural productsFair valueIAS 41Gerenciamento de resultadosAtivos biológicosProdutos agrícolasValor justoPronunciamento técnico CPC 29The use of fair value to measure the worth of biological assets allows discretionary choices when using discounted cash flow in the absence of an active market, influencing the quality of accounting information. The objective of this study was to investigate evidence of earnings management among Brazilian companies that have adopted fair value based on the discounted cash flow method. The firms were investigated with regard to: a) disclosure of the discount rate, b) BM&FBovespa corporate governance levels; and c) adherence to disclosure requirements in the Brazilian accounting standard CPC 29 (IAS 41). We analyzed 31 firms with significant biological assets from 2010 to 2012. The earnings management measurements were calculated according to the modified Jones, the Teoh, Welch and Wong (1998), and the KS models. The Mann-Whitney test of the means was applied and revealed evidence of greater earnings management for companies that use discounted cash flow, and the ones that least meet CPC 29 disclosure requirements, considering the KS model estimates. Regarding the other proposals, testing did not offer enough evidence of differences in discretionary accruals. In this sense, only hypotheses 1 and 4 are partially accepted, demanding more research in this area. We also present evidence in favor of adopting Exposure Draft ED/2013/08 Agriculture: Bearer Plants, Proposed amendments to IAS 16 and IAS 41, which proposes to measure biological assets at cost, because firms already following these rules showed lower earnings management in this study.A utilização do valor justo para mensuração dos ativos biológicos exige discricionariedade ao usar o fluxo de caixa descontado na ausência de mercado ativo, influenciando a qualidade da informação contábil. O objetivo desta pesquisa foi verificar a existência de evidências quanto a possíveis gerenciamentos de resultados entre companhias que adotaram o valor justo com base no método do fluxo de caixa descontado. Ademais, as empresas foram investigadas no que diz respeito a: a) divulgação da taxa de desconto, b) níveis de governança corporativa da BM&FBOVESPA e c) aderência às exigências de divulgação do CPC 29. Trabalhou-se com 31 empresas com ativos biológicos nos anos 2010-2012; as medidas de gerenciamento foram calculadas pelos modelos Jones Modificado, Teoh, Welch e Wong (1998) e modelo KS. O teste de médias “Mann-Whitney” foi aplicado e revelou indícios de maior gerenciamento de resultados (GR) para as empresas que usam fluxo de caixa descontado, e as que menos atendem aos requisitos de divulgação do CPC 29, ao considerar as estimativas do modelo KS. Com relação às demais preposições, os testes não permitiram observar diferenças em termos de accruals discricionários. Nesse sentido, apenas as hipóteses 1 e 4 são parcialmente aceitas, o que demanda mais estudos nessa área. Este trabalho apresenta evidências favoráveis ao exposure draft ED/2013/08 Agriculture: Bearer Plants, Proposed amendments to IAS 16 and IAS 41, que propõe mensurar ativos biológicos de produção ao custo, os quais apresentaram menor gerenciamento de resultados neste estudo.FUCAPE Business Shool2015-07-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed ArticleArtigo revisado pelos paresapplication/pdfapplication/pdfhttp://www.bbronline.com.br/index.php/bbr/article/view/13110.15728/bbr.2015.12.4.1Brazilian Business Review; Vol. 12 No. 4 (2015): July to August 2015; 1-26Brazilian Business Review; v. 12 n. 4 (2015): Julho a Agosto de 2015; 1-261808-23861807-734Xreponame:BBR. Brazilian Business Review (English edition. Online)instname:Fucape Business School (FBS)instacron:FBSengporhttp://www.bbronline.com.br/index.php/bbr/article/view/131/197http://www.bbronline.com.br/index.php/bbr/article/view/131/198Silva, Ricardo Luiz Menezes daNardi, Paula Carolina CiampagliaRibeiro, Maisa de Souzainfo:eu-repo/semantics/openAccess2018-10-31T19:07:30Zoai:ojs.pkp.sfu.ca:article/131Revistahttps://www.bbronline.com.br/index.php/bbr/indexONGhttp://www.bbronline.com.br/index.php/bbr/oai|| bbronline@bbronline.com.br1808-23861808-2386opendoar:2018-10-31T19:07:30BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)false |
dc.title.none.fl_str_mv |
Earnings Management and Valuation of Biological Assets Gerenciamento de Resultados e Valorização dos Ativos Biológicos |
title |
Earnings Management and Valuation of Biological Assets |
spellingShingle |
Earnings Management and Valuation of Biological Assets Silva, Ricardo Luiz Menezes da Earnings management Biological assets Agricultural products Fair value IAS 41 Gerenciamento de resultados Ativos biológicos Produtos agrícolas Valor justo Pronunciamento técnico CPC 29 |
title_short |
Earnings Management and Valuation of Biological Assets |
title_full |
Earnings Management and Valuation of Biological Assets |
title_fullStr |
Earnings Management and Valuation of Biological Assets |
title_full_unstemmed |
Earnings Management and Valuation of Biological Assets |
title_sort |
Earnings Management and Valuation of Biological Assets |
author |
Silva, Ricardo Luiz Menezes da |
author_facet |
Silva, Ricardo Luiz Menezes da Nardi, Paula Carolina Ciampaglia Ribeiro, Maisa de Souza |
author_role |
author |
author2 |
Nardi, Paula Carolina Ciampaglia Ribeiro, Maisa de Souza |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Silva, Ricardo Luiz Menezes da Nardi, Paula Carolina Ciampaglia Ribeiro, Maisa de Souza |
dc.subject.por.fl_str_mv |
Earnings management Biological assets Agricultural products Fair value IAS 41 Gerenciamento de resultados Ativos biológicos Produtos agrícolas Valor justo Pronunciamento técnico CPC 29 |
topic |
Earnings management Biological assets Agricultural products Fair value IAS 41 Gerenciamento de resultados Ativos biológicos Produtos agrícolas Valor justo Pronunciamento técnico CPC 29 |
description |
The use of fair value to measure the worth of biological assets allows discretionary choices when using discounted cash flow in the absence of an active market, influencing the quality of accounting information. The objective of this study was to investigate evidence of earnings management among Brazilian companies that have adopted fair value based on the discounted cash flow method. The firms were investigated with regard to: a) disclosure of the discount rate, b) BM&FBovespa corporate governance levels; and c) adherence to disclosure requirements in the Brazilian accounting standard CPC 29 (IAS 41). We analyzed 31 firms with significant biological assets from 2010 to 2012. The earnings management measurements were calculated according to the modified Jones, the Teoh, Welch and Wong (1998), and the KS models. The Mann-Whitney test of the means was applied and revealed evidence of greater earnings management for companies that use discounted cash flow, and the ones that least meet CPC 29 disclosure requirements, considering the KS model estimates. Regarding the other proposals, testing did not offer enough evidence of differences in discretionary accruals. In this sense, only hypotheses 1 and 4 are partially accepted, demanding more research in this area. We also present evidence in favor of adopting Exposure Draft ED/2013/08 Agriculture: Bearer Plants, Proposed amendments to IAS 16 and IAS 41, which proposes to measure biological assets at cost, because firms already following these rules showed lower earnings management in this study. |
publishDate |
2015 |
dc.date.none.fl_str_mv |
2015-07-01 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer-reviewed Article Artigo revisado pelos pares |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://www.bbronline.com.br/index.php/bbr/article/view/131 10.15728/bbr.2015.12.4.1 |
url |
http://www.bbronline.com.br/index.php/bbr/article/view/131 |
identifier_str_mv |
10.15728/bbr.2015.12.4.1 |
dc.language.iso.fl_str_mv |
eng por |
language |
eng por |
dc.relation.none.fl_str_mv |
http://www.bbronline.com.br/index.php/bbr/article/view/131/197 http://www.bbronline.com.br/index.php/bbr/article/view/131/198 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/pdf |
dc.publisher.none.fl_str_mv |
FUCAPE Business Shool |
publisher.none.fl_str_mv |
FUCAPE Business Shool |
dc.source.none.fl_str_mv |
Brazilian Business Review; Vol. 12 No. 4 (2015): July to August 2015; 1-26 Brazilian Business Review; v. 12 n. 4 (2015): Julho a Agosto de 2015; 1-26 1808-2386 1807-734X reponame:BBR. Brazilian Business Review (English edition. Online) instname:Fucape Business School (FBS) instacron:FBS |
instname_str |
Fucape Business School (FBS) |
instacron_str |
FBS |
institution |
FBS |
reponame_str |
BBR. Brazilian Business Review (English edition. Online) |
collection |
BBR. Brazilian Business Review (English edition. Online) |
repository.name.fl_str_mv |
BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS) |
repository.mail.fl_str_mv |
|| bbronline@bbronline.com.br |
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