Deferral of currency variation losses as an earnings management tool

Detalhes bibliográficos
Autor(a) principal: Santos, Ariovaldo dos
Data de Publicação: 2006
Outros Autores: Paulo, Edílson
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/456
Resumo: Earnings management has become an important topic in accounting and finance in recent decades. This practice is possible due the existence of alternative accounting criteria for recognition, measurement and/or demonstration of earnings, creating opportunities for managers to choose one of the available options in order to reflect information in the desired form. This can sometimes distort the analysis of the company’s performance. There are various ways to manipulate accounting information. This paper investigates whether there was earnings management in Brazil through deferral of losses due to exchange rate variations in 1999 and 2001, as well as through the respective amortization of these losses in following years. We analyze the companies that carried out such deferral in one or both years, and the respective amortization from 1999 to 2003, utilizing histograms and nonparametric methods, and find strong indications that the companies that chose such deferral did so to manage their earnings, in order to avoid showing decreased earnings or even losses.
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spelling Deferral of currency variation losses as an earnings management tooldeferralcurrency variation lossearnings managementdiferimentoperdas cambiaisgerenciamento de resultadosEarnings management has become an important topic in accounting and finance in recent decades. This practice is possible due the existence of alternative accounting criteria for recognition, measurement and/or demonstration of earnings, creating opportunities for managers to choose one of the available options in order to reflect information in the desired form. This can sometimes distort the analysis of the company’s performance. There are various ways to manipulate accounting information. This paper investigates whether there was earnings management in Brazil through deferral of losses due to exchange rate variations in 1999 and 2001, as well as through the respective amortization of these losses in following years. We analyze the companies that carried out such deferral in one or both years, and the respective amortization from 1999 to 2003, utilizing histograms and nonparametric methods, and find strong indications that the companies that chose such deferral did so to manage their earnings, in order to avoid showing decreased earnings or even losses.O gerenciamento de resultados (earnings management) tem se tornado um dos principais temas na área de contabilidade e finanças nas últimas décadas. Essa prática é possível pela existência de critérios alternativos de reconhecimento, mensuração e/ou evidenciação dentro do sistema contábil, criando-se oportunidades para que os administradores possam escolher uma das opções válidas, a fim de retratar as informações da forma desejada, podendo, por vezes, distorcer a análise do desempenho empresarial. Diversas são as possibilidades de manipulação das informações contábeis, entretanto, este trabalho busca verificar se existiu no Brasil o gerenciamento de resultados através do diferimento das perdas cambiais nos anos de 1999 e 2001, bem como a respectiva amortização nos períodos subseqüentes. Foram analisadas as empresas que efetuaram o diferimento, e respectiva amortização, durante os anos de 1999 a 2003. Utilizando-se da análise de histograma e de testes não-paramétricos, verificou-se que existem fortes indícios de gerenciamento de resultados nas empresas que optaram pelo diferimento das variações cambiais em 1999 e 2001, com objetivo de evitar (ou minimizar) a apresentação de resultados negativos.FUCAPE Business Shool2006-01-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed ArticleArtigo revisado pelos paresapplication/pdfapplication/pdfhttp://www.bbronline.com.br/index.php/bbr/article/view/45610.15728/bbr.2006.3.1.2Brazilian Business Review; Vol. 3 No. 1 (2006): January to June 2006; 15-31Brazilian Business Review; v. 3 n. 1 (2006): Janeiro a Junho de 2006; 15-311808-23861807-734Xreponame:BBR. Brazilian Business Review (English edition. Online)instname:Fucape Business School (FBS)instacron:FBSengporhttp://www.bbronline.com.br/index.php/bbr/article/view/456/688http://www.bbronline.com.br/index.php/bbr/article/view/456/689Copyright (c) 2006 Brazilian Business Reviewhttps://creativecommons.org/licenses/by/4.0info:eu-repo/semantics/openAccessSantos, Ariovaldo dosPaulo, Edílson2018-11-06T20:00:23Zoai:ojs.pkp.sfu.ca:article/456Revistahttps://www.bbronline.com.br/index.php/bbr/indexONGhttp://www.bbronline.com.br/index.php/bbr/oai|| bbronline@bbronline.com.br1808-23861808-2386opendoar:2018-11-06T20:00:23BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)false
dc.title.none.fl_str_mv Deferral of currency variation losses as an earnings management tool
title Deferral of currency variation losses as an earnings management tool
spellingShingle Deferral of currency variation losses as an earnings management tool
Santos, Ariovaldo dos
deferral
currency variation loss
earnings management
diferimento
perdas cambiais
gerenciamento de resultados
title_short Deferral of currency variation losses as an earnings management tool
title_full Deferral of currency variation losses as an earnings management tool
title_fullStr Deferral of currency variation losses as an earnings management tool
title_full_unstemmed Deferral of currency variation losses as an earnings management tool
title_sort Deferral of currency variation losses as an earnings management tool
author Santos, Ariovaldo dos
author_facet Santos, Ariovaldo dos
Paulo, Edílson
author_role author
author2 Paulo, Edílson
author2_role author
dc.contributor.author.fl_str_mv Santos, Ariovaldo dos
Paulo, Edílson
dc.subject.por.fl_str_mv deferral
currency variation loss
earnings management
diferimento
perdas cambiais
gerenciamento de resultados
topic deferral
currency variation loss
earnings management
diferimento
perdas cambiais
gerenciamento de resultados
description Earnings management has become an important topic in accounting and finance in recent decades. This practice is possible due the existence of alternative accounting criteria for recognition, measurement and/or demonstration of earnings, creating opportunities for managers to choose one of the available options in order to reflect information in the desired form. This can sometimes distort the analysis of the company’s performance. There are various ways to manipulate accounting information. This paper investigates whether there was earnings management in Brazil through deferral of losses due to exchange rate variations in 1999 and 2001, as well as through the respective amortization of these losses in following years. We analyze the companies that carried out such deferral in one or both years, and the respective amortization from 1999 to 2003, utilizing histograms and nonparametric methods, and find strong indications that the companies that chose such deferral did so to manage their earnings, in order to avoid showing decreased earnings or even losses.
publishDate 2006
dc.date.none.fl_str_mv 2006-01-01
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/456
10.15728/bbr.2006.3.1.2
url http://www.bbronline.com.br/index.php/bbr/article/view/456
identifier_str_mv 10.15728/bbr.2006.3.1.2
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/456/688
http://www.bbronline.com.br/index.php/bbr/article/view/456/689
dc.rights.driver.fl_str_mv Copyright (c) 2006 Brazilian Business Review
https://creativecommons.org/licenses/by/4.0
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 2006 Brazilian Business Review
https://creativecommons.org/licenses/by/4.0
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. 3 No. 1 (2006): January to June 2006; 15-31
Brazilian Business Review; v. 3 n. 1 (2006): Janeiro a Junho de 2006; 15-31
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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