Mandatory IFRS Adoption in Brazil (2010): Index of Compliance with Disclosure Requirements and some Explanatory Factors of Firms Reporting

Santos, Edilene Santana; Ponte, Vera Maria Rodrigues; Mapurunga, Patrícia Vasconcelos Rocha

doi:10.1590/S1519-70772014000200006

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Revista Contabilidade & Finanças

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ARTICLES • Rev. contab. finanç. 25 (65) • May-Aug 2014 • https://doi.org/10.1590/S1519-70772014000200006 copy

Mandatory IFRS Adoption in Brazil (2010): Index of Compliance with Disclosure Requirements and some Explanatory Factors of Firms Reporting^* * Paper presented at the VII Congresso AnpCONT, Fortaleza, Brazil, 2013 and American Accounting Association Annual Meeting, Anaheim, USA, 2013.

Authorship SCIMAGO INSTITUTIONS RANKINGS

We evaluate firms' compliance with required International Financial Reporting Standards (IFRS) disclosure in the first mandatory adoption year of IFRS in Brazil (2010), by comprehensively examining 638 disclosure required items from 28 encompassing IFRSs in the Notes to Financial Statements of all (366) Brazilian non-financial corporations listed on the Brazilian stock exchange (BM&FBovespa). We measure disclosure compliance levels by calculating the respective index, both overall and for each standard, and investigate associations between disclosure levels and firm's characteristics as potential explanatory disclosure compliance factors. Our findings show overall low levels of disclosure compliance in the analyzed year: the average level of compliance with IFRS required disclosure was very sensible to the approach employed, varying from 16.04% (strict criterion and dichotomous approach) to 33.72% (tolerant criterion and partial compliance unweighted approach). In line with other countries experience illustrated by the international literature, these results emphasize the importance of increasing institutional support conditions for enhanced enforcement mechanisms, enabling the Brazilian firms to better attain the full economic benefits of IFRS adoption. In all our analyses, company size and "Big 4" auditing were positively associated with the dependent variable, independent of the model employed to determine the compliance disclosure index, making it possible to conclude that these factors produce a significant positive impact on compliance with the IFRS disclosure requirement levels of Brazilian firms.

Compliance; Mandatory disclosure; Explanatory factors; IFRS; Brazil

N.	Standards	(CPC and IAS/IFRS)
1	Impairment of Assets	CPC 01 (IAS 36)
2	Intangible Assets	CPC 04 (IAS 38)
3	Related Party Disclosures	CPC 05 (IAS 24)
4	Financial Lease for the Lessee	CPC 06 (IAS 17)
5	Operating Lease for the Lessee	CPC 06 (IAS 17)
6	Transaction Costs and Premium on the Issuance of Securities	CPC 08 (parts of IAS 32 and 39)
7	Share-based Payment	CPC 10 (IFRS 2)
8	Adjustments to Present Value	CPC 12 (NA)
9	Business Combinations	CPC 15 (IFRS 3)
10	Inventories	CPC 16 (IAS 2)
11	Investments in Associates	CPC 18 (IAS 28)
12	Interests in Joint Ventures	CPC 19 (IAS 31)
13	Borrowing Costs	CPC 20 (IAS 23)
14	Operating Segments	CPC 22 (IFRS 8)
15	Accounting Policies	CPC 23 (IAS 8)
16	Changes in Accounting Estimates	CPC 23 (IAS 8)
17	Errors	CPC 23 (IAS 8)
18	Events After the Reporting Period	CPC 24 (IAS 10)
19	Provisions, Contingent Liabilities and Contingent Assets	CPC 25 (IAS 37)
20	Property, Plant and Equipment	CPC 27 (IAS 16) and ICPC 10 (IFRS 1)
21	Investment Property	CPC 28 (IAS 40)
22	Revenue	CPC 30 (IAS 18)
23	Non-current Assets Held for Sale and Discontinued Operations	CPC 31 (IFRS 5)
24	Income Taxes	CPC 32 (IAS 12)
25	Employee Benefits	CPC 33 (IAS 19)
26	Consolidated and Separate Financial Statements	CPC 36 (IAS 2 7)
27	First-time Adoption of International Financial Standards	CPC 37 (IFRS 1)
28	Earnings per Share	CPC 41 (IAS 33)
29	Accounting for the Payment of Proposed Dividends	ICPC 08 (NA)
30	Financial Instruments	CPC 40 and OCPC 03 (IAS 39 and IFRS 7)

Standards	Declared Applicability				Non-Applicability Declared		Nothing infomed
Standards	Required Information Disclosed		Required Information not Disclosed		Non-Applicability Declared		Nothing infomed
	N	%	N	%	N	%	N	%
1 Impairment of Asserts (CPC 01 - IAS 36)	42	11%	0	0%	60	16%	264	72%
2 Operating Lease for the Lessee (CPC 06 - IAS 17)	110	30%	9	2%	11	3%	236	64%
3 Transaction Costs and Premium on the Issuance of Securities (CPC 08 - parts of IAS 32 and 39)	4	1 %	8	2%	0	0%	354	97%
4 Share-based Payment (CPC 10 - IFRS 2)	118	32%	0	0%	70	19%	178	49%
5 Adjustments to Present Value (CPC 12 - NA)	138	38%	0	0%	51	14%	177	48%
6 Business Combinations (CPC 15 - IFRS 3)	55	15%	17	5%	23	6%	271	74%
7 Borrowing Costs (CPC 20 - IAS 23)	36	10%	0	0%	0	0%	330	90%
8 Operating Segments (CPC 22 - IFRS 8)	184	50%	0	0%	3	1 %	179	49%
9 Accounting Policies (CPC 23 - IAS 8)	284	78%	0	0%	4	1 %	78	21 %
10 Changes in Accounting Estimates (CPC 23 - IAS 8)	95	26%	0	0%	4	1 %	267	73%
11 Errors (CPC 23 - IAS 8)	6	2%	0	0%	3	1 %	357	98%
12 Events After the Reporting Period (CPC 24 - IAS 10)	331	90%	0	0%	0	0%	35	10%
13 Provisions, Contingent Liabilities and Contigent Assets (CPC 25 - IAS 37)	320	87%	1	0%	20	5%	25	7%
14 Employee Benefits (CPC 33 - IAS 19)	142	39%	12	3%	59	16%	153	42%
15 Financial Instruments (CPC 40 / OCPC 03 - IAS 39 / IFRS 7)	142	39%	0	0%	155	42%	69	19%

PANEL A: Compliance Disclosure Index for Standards whose Applicability could be Verified by a Specific Account
Standards		Criteria	NOT Applicable	Applicable	Mean	SD
Standards		Criteria	N	N	(%)	(%)
1	Intangible Assets (CPC 04 - IAS 38)	NA	45	321	22.18	12.1
2	Related Party Disclosures (CPC 05 - IAS 24)	NA	0	366	11.42	81.57
3	Financial Lease for the Lessee (CPC 06 -IAS 17)	NA	235	131	33.33	24.76
4	Inventories (CPC 16 - IAS 2)	NA	78	288	25.07	11.12
5	Investments in Associates (CPC 18 - IAS 28)	NA	131	235	43.2	14.31
6	Interests in Joint Ventures (CPC 19 - IAS 31)	NA	346	20	25.83	16.42
7	Property, Plant and Equipment (CPC 27-IAS 16 and ICPC 10-IFRS 1)	NA	34	332	25.21	12.01
8	Investment Property (CPC 28 - IAS 40)	NA	307	59	6.51	8.35
9	Revenue (CPC 30 - IAS 18)	NA	3	363	42.97	18.97
10	Non-current Assets Held for Sale and Discontinued Operations (CPC 31 - IFRS 5)	NA	326	40	33.33	20
11	Income Taxes (CPC 32 - IAS 12)	NA	0	366	29.81	18.55
12	Consolidated and Separate Financial Statements (CPC 36 - IAS 27)	NA	98	268	44.44	22.53
13	First-time Adoption of International Financial Standards (CPC 37 - IFRS 1)	NA	0	366	57.49	30.94
14	Earnings per Share (CPC 41 - IAS 33)	NA	0	366	32.96	20.37
15	Accounting for the Payment of Proposed Dividends (ICPC 08 - NA)	NA	83	283	87.58	33.02
PANEL B: Compliance Disclosure Index for Standards whose Applicability could only be Verified by Notes
Standards		Criteria	NOT Applicable	Applicable	Mean	SD
Standards		Criteria	N	N	(%)	(%)
1	Impairment of Assets (CPC 01 - IAS 36)	1	60	306	1.89	5.14
1	Impairment of Assets (CPC 01 - IAS 36)	2	324	42	13.74	5.46
2	Operating Lease for the Lessee (CPC 06 - IAS 17)	1	11	355	11.03	21.17
2	Operating Lease for the Lessee (CPC 06 - IAS 17)	2	247	119	32.91	24.87
3	Transaction Costs and Premium on the Issuance of Securities (CPC 08 - parts of IAS 32 and 39)	1	0	366	0.54	5.31
3		2	354	12	16.67	25.34
4	Share-based Payment (CPC 10 - IFRS 2)	1	70	296	8.8	12.87
4	Share-based Payment (CPC 10 - IFRS 2)	2	248	118	22.09	11.03
5	Adjustments to Present Value (CPC 12 - NA)	1	51	315	8.48	11.04
5	Adjustments to Present Value (CPC 12 - NA)	2	228	138	19.17	8.39
6	Business Combinations (CPC 15 - IFRS 3)	1	23	343	2.57	66.38
6	Business Combinations (CPC 15 - IFRS 3)	2	294	72	12.48	9.5
7	Borrowing Costs (CPC 20 - IAS 23)	1	0	366	7.92	25.21
7	Borrowing Costs (CPC 20 - IAS 23)	2	330	36	78.37	2 7.74
8	Operating Segments (CPC 22 - IFRS 8)	1	3	363	16.98	19.53
8	Operating Segments (CPC 22 - IFRS 8)	2	182	184	33.5	14.09
9	Accounting Policies (CPC 23 - IAS 8)	1	4	362	17.14	10.36
9	Accounting Policies (CPC 23 - IAS 8)	2	82	284	21.75	5.89
10	Changes in Accounting Estimates (CPC 23 - IAS 8)	1	4	362	22.25	39.02
10	Changes in Accounting Estimates (CPC 23 - IAS 8)	2	271	95	81.12	27.35
11	Errors (CPC 23 - IAS 8)	1	3	363	1.24	9.59
11	Errors (CPC 23 - IAS 8)	2	360	6	64.28	28.34
12	Events After the Reporting Period (CPC 24 - IAS 10)	1	0	366	49.69	23.79
12	Events After the Reporting Period (CPC 24 - IAS 10)	2	35	331	54.8	18.54
13	Provisions, Contingent Liabilities and Contingent Assets (CPC 25 - IAS 37)	1	20	346	33.21	16.45
13		2	45	321	35.79	14.1
14	Employee Benefits (CPC 33 - IAS 19)	1	59	307	24.7	35.69
14	Employee Benefits (CPC 33 - IAS 19)	2	212	154	49.25	36.49
15	Financial Instruments (CPC 40 / OCPC 03 - IAS 39 / IFRS 7)	1	155	211	32.03	25.1
15	Financial Instruments (CPC 40 / OCPC 03 - IAS 39 / IFRS 7)	2	224	142	47.63	13.91

Model	Approach Employed in Index Accumulation	Criteria for Applicability of a Subject to a Firm	Mean	Standard Deviation	Minimum	Maximum
Model	Approach Employed in Index Accumulation	Criteria for Applicability of a Subject to a Firm	(%)	(%)	(%)	(%)
1	Dichotomous approach	Criteria 1 (Strict)	16.04	7.84	0³	36.02
2	Dichotomous approach	Criteria 2 (Tolerant)	23.69	8.27	0	45.43
3	Partial compliance unweighted approach	Criteria 1 (Strict)	24.19	9.32	0	44.05
4	Partial compliance unweighted approach	Criteria 2 (Tolerant)	33.72	10.39	0	53.4

Variable	Groups	N	Mean	Standard Deviation	Minimum	Maximum	Z test
Industry	Agri & Fisheries	3	16%	7%	8%	23%	25.47
	Food & Beverage	16	16%	10%	3%	36%
	Trade	17	19%	7%	7%	35%
	Construction	28	14%	6%	1%	27%
	Electric Electronic	7	14%	8%	5%	26%
	Electric Power	57	18%	7%	3%	35%
	Industrial Machines	5	14%	7%	2%	19%
	Mining	7	13%	12%	1%	28%
	Nonmetallic Mining	4	16%	7%	9%	22%
	Pulp & Paper	6	20%	7%	8%	28%
	Oil & Gas	8	15%	7%	7%	31%
	Chemical	12	18%	6%	9%	29%
	Basic & Fac Metal	25	15%	10%	2%	31%
	Software & Data	4	20%	4%	17%	26%
	Telecommunication	14	21%	9%	2%	31%
	Textile	27	15%	6%	1%	25%
	Transportation Services	22	17%	7%	2%	31%
	Vehicle & Parts	18	15%	9%	2%	30%
	Others	86	15%	8%	0%	33%
International listing	Yes	89	22%	5%	12%	36%	-6.467^*** , , ** Indi Model 1: Compliance disclosure index obtained when both the strict criteria for applicability of a subject to a firm and the dichotomous approach to calculate the overall index were adopted. , , ** Indi Findings for the variable "industry" were submitted to the Kruskal-Wallis test. The other variables were analyzed with the Mann-Whitney U test.
International listing	No	277	14%	8%	0%	35%
"Big4" auditing	Yes	260	19%	6%	3%	36%	-10.076^*** , , ** Indi Model 1: Compliance disclosure index obtained when both the strict criteria for applicability of a subject to a firm and the dichotomous approach to calculate the overall index were adopted. , , ** Indi Findings for the variable "industry" were submitted to the Kruskal-Wallis test. The other variables were analyzed with the Mann-Whitney U test.
"Big4" auditing	No	106	9%	7%	0%	30%
Corporate governance	Yes	150	20%	5%	3%	35%	-7.711^*** , , ** Indi Model 1: Compliance disclosure index obtained when both the strict criteria for applicability of a subject to a firm and the dichotomous approach to calculate the overall index were adopted. , , ** Indi Findings for the variable "industry" were submitted to the Kruskal-Wallis test. The other variables were analyzed with the Mann-Whitney U test.
Corporate governance	No	216	13%	8%	0%	36%

Variable	Groups	N	Mean	Standard deviation	Minimum	Maximum	Z test
Industry	Agri & Fisheries	3	31%	10%	20%	40%	31.543^** , , ** Indi Model 4: Compliance disclosure index obtained when both the indulgent criteria for applicability of a subject to a firm and the partial compliance unwheig-ted approach to calculate the overall index were adopted.
	Food & Beverage	16	33%	12%	9%	50%
	Trade	17	37%	8%	22%	51%
	Construction	28	33%	10%	6%	50%
	Electric Electronic	7	32%	9%	18%	40%
	Electric Power	57	36%	6%	16%	48%
	Industrial Machines	5	34%	14%	10%	45%
	Mining	7	23%	16%	4%	40%
	Nonmetallic Mining	4	34%	7%	24%	43%
	Pulp & Paper	6	42%	8%	26%	50%
	Oil & Gas	8	32%	8%	22%	49%
	Chemical	12	37%	5%	28%	44%
	Basic & Fac Metal	25	32%	13%	9%	51%
	Software & Data	4	38%	10%	24%	46%
	Telecommunication	14	38%	11%	9%	46%
	Textile	27	34%	10%	3%	46%
	Transportation Services	22	39%	9%	9%	51%
	Vehicle & Parts	18	32%	12%	10%	53%
	Others	86	31%	11%	0%	53%
International listing	Yes	89	40%	6%	24%	51%	-6.148^*** , , ** Indi Model 4: Compliance disclosure index obtained when both the indulgent criteria for applicability of a subject to a firm and the partial compliance unwheig-ted approach to calculate the overall index were adopted.
International listing	No	277	32%	11%	0%	53%
"Big4" auditing	Yes	260	38%	7%	11%	53%	-10.251^*** , , ** Indi Model 4: Compliance disclosure index obtained when both the indulgent criteria for applicability of a subject to a firm and the partial compliance unwheig-ted approach to calculate the overall index were adopted.
"Big4" auditing	No	106	24%	11%	0%	46%
Corporate governance	Yes	150	38%	6%	20%	53%	-6.453^*** , , ** Indi Model 4: Compliance disclosure index obtained when both the indulgent criteria for applicability of a subject to a firm and the partial compliance unwheig-ted approach to calculate the overall index were adopted.
Corporate governance	No	216	31%	12%	0%	51%

		SIZE	PROF	LEV	INT	BIG4	GOV
SIZE	Pearson Correlation	1
	Sig. (2-tailed)	.
	N	360
PROF	Pearson Correlation	-0.062	1
	Sig. (2-tailed)	0.241	.
	N	360	360
LEV	Pearson Correlation	0.132(^* SIZE: Company size (natural logarithm the firm total asset); PROF: Profitability (ROE); LEV: Financial leverage (debt/asset ratio); INT: International listing (1 if the firm is listed in international stock exchanges and 0 otherwise); BIG4: Type of auditor (1 if the firm is audited by Ernest Yong, Deloitte, PWC or KPMG and 0 otherwise); GOV: Corporate governance (1 if the firm is in the BM&FBovespa corporate governance special listing and 0 otherwise). )	0.178(^** SIZE: Company size (natural logarithm the firm total asset); PROF: Profitability (ROE); LEV: Financial leverage (debt/asset ratio); INT: International listing (1 if the firm is listed in international stock exchanges and 0 otherwise); BIG4: Type of auditor (1 if the firm is audited by Ernest Yong, Deloitte, PWC or KPMG and 0 otherwise); GOV: Corporate governance (1 if the firm is in the BM&FBovespa corporate governance special listing and 0 otherwise). )	1
	Sig. (2-tailed)	0.012	0.001	.
	N	360	360	360
INT	Pearson Correlation	0.410(^** SIZE: Company size (natural logarithm the firm total asset); PROF: Profitability (ROE); LEV: Financial leverage (debt/asset ratio); INT: International listing (1 if the firm is listed in international stock exchanges and 0 otherwise); BIG4: Type of auditor (1 if the firm is audited by Ernest Yong, Deloitte, PWC or KPMG and 0 otherwise); GOV: Corporate governance (1 if the firm is in the BM&FBovespa corporate governance special listing and 0 otherwise). )	0.001	0.071	1
	Sig. (2-tailed)	0	0.99	0.177	.
	N	360	360	360	360
BIG4	Pearson Correlation	0.420(^** SIZE: Company size (natural logarithm the firm total asset); PROF: Profitability (ROE); LEV: Financial leverage (debt/asset ratio); INT: International listing (1 if the firm is listed in international stock exchanges and 0 otherwise); BIG4: Type of auditor (1 if the firm is audited by Ernest Yong, Deloitte, PWC or KPMG and 0 otherwise); GOV: Corporate governance (1 if the firm is in the BM&FBovespa corporate governance special listing and 0 otherwise). )	0.106(^* SIZE: Company size (natural logarithm the firm total asset); PROF: Profitability (ROE); LEV: Financial leverage (debt/asset ratio); INT: International listing (1 if the firm is listed in international stock exchanges and 0 otherwise); BIG4: Type of auditor (1 if the firm is audited by Ernest Yong, Deloitte, PWC or KPMG and 0 otherwise); GOV: Corporate governance (1 if the firm is in the BM&FBovespa corporate governance special listing and 0 otherwise). )	0.048	0.258(^** SIZE: Company size (natural logarithm the firm total asset); PROF: Profitability (ROE); LEV: Financial leverage (debt/asset ratio); INT: International listing (1 if the firm is listed in international stock exchanges and 0 otherwise); BIG4: Type of auditor (1 if the firm is audited by Ernest Yong, Deloitte, PWC or KPMG and 0 otherwise); GOV: Corporate governance (1 if the firm is in the BM&FBovespa corporate governance special listing and 0 otherwise). )	1
	Sig. (2-tailed)	0	0.044	0.369	0	.
	N	360	360	360	360	360
GOV	Pearson Correlation	0.349(^** SIZE: Company size (natural logarithm the firm total asset); PROF: Profitability (ROE); LEV: Financial leverage (debt/asset ratio); INT: International listing (1 if the firm is listed in international stock exchanges and 0 otherwise); BIG4: Type of auditor (1 if the firm is audited by Ernest Yong, Deloitte, PWC or KPMG and 0 otherwise); GOV: Corporate governance (1 if the firm is in the BM&FBovespa corporate governance special listing and 0 otherwise). )	0.008	0.021	0.469(^** SIZE: Company size (natural logarithm the firm total asset); PROF: Profitability (ROE); LEV: Financial leverage (debt/asset ratio); INT: International listing (1 if the firm is listed in international stock exchanges and 0 otherwise); BIG4: Type of auditor (1 if the firm is audited by Ernest Yong, Deloitte, PWC or KPMG and 0 otherwise); GOV: Corporate governance (1 if the firm is in the BM&FBovespa corporate governance special listing and 0 otherwise). )	0.415(^** SIZE: Company size (natural logarithm the firm total asset); PROF: Profitability (ROE); LEV: Financial leverage (debt/asset ratio); INT: International listing (1 if the firm is listed in international stock exchanges and 0 otherwise); BIG4: Type of auditor (1 if the firm is audited by Ernest Yong, Deloitte, PWC or KPMG and 0 otherwise); GOV: Corporate governance (1 if the firm is in the BM&FBovespa corporate governance special listing and 0 otherwise). )	1
	Sig. (2-tailed)	0	0.878	0.698	0	0	.
	N	360	360	360	360	360	360

Independent Variables	Expectation	Coefficient (significance)
		t test
		Model 1	Model 2	Model 3	Model 4
SIZE	+	0.0406(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.0392(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.0473(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.0525(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )
SIZE	+	(13.00)	(11.68)	(13.08)	(12.92)
PROF	+	0.0092	0.0116(^* Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.0093	0.0104
PROF	+	(1.45)	(1.7)	(1.27)	(1.26)
LEV	+	0.0146	0.0073	0.0016	-0.0127
LEV	+	(1.58)	(0.73)	(0.15)	(-1.05)
INT	+	0.0165(^** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.0091	0.0092	0.0023
INT	+	(2.26)	(1.15)	(1.09)	(0.25)
BIG4	+	0.0464(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.06524(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.0682(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.0841(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )
BIG4	+	(6.66)	(8.71)	(8.41)	(9.2 7)
GOV	+	0.0086	-0.0009	0.0086	0.0013
GOV	+	(1.26)	(-0.12)	(1.08)	(0.15)
AG_I	?	0.0121	0.0036	0.0303	0.0027
AG_I	?	(0.42)	(0.11)	(0.90)	(0.07)
FB_I	?	0.0076	0.02 73(^* Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.0266	0.0301
FB_I	?	(0.52)	-1.73	(1.57)	(1.58)
TR_I	?	0.0174	0.0248(^* Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.0378(^** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.0300(^* Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )
TR_I	?	(1.32)	(1.76)	(2.49)	(1.75)
CO_I	?	0.0345(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	-0.0317(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	-0.0143	-0.0152
CO_I	?	(-3.16)	(-2.71)	(-1.14)	(-1.07)
EL_I	?	- 0.0164	0.0002	-0.0184	-0.0019
EL_I	?	(-0.83)	(0.01)	(-0.81)	(-0.07)
EP_I	?	0.0095	0.0001	-0.0208(^** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	-0.0116
EP_I	?	(-1.05)	-0.01	(-1.98)	(-0.98)
IM_I	?	0.0339	-0.0256	-0.0023	0.0128
IM_I	?	(-1.46)	(-1.02)	(-0.09)	(0.042)
M_I	?	- 0.0184	-0.0427(^* Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	-0.0424(^* Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.0733(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )
M_I	?	(-0.88)	(-1.91)	(-1.76)	(-2.70)
NM_I	?	0.0239	0.0249	0.0440	0.0532
NM_I	?	(0.95)	(0.92)	(1.51)	(1.62)
PP_I	?	0.0064	0.0209	0.0301	0.0427
PP_I	?	(0.31)	(0.93)	(1.24)	(1.56)
OG_I	?	- 0.0418	-0.0361(^* Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	-0.0466(^** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	-0.0501(^** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )
OG_I	?	(-2,27)	(-1.82)	(-2.19)	(-2.09)
CH_I	?	- 0.0011	0.0028	0.0120	0.0058
CH_I	?	(-0.07)	-0.17	(0.68)	(0.29)
BM_I	?	- 0.0114	-0.0029	0.0096	0.0120
BM_I	?	(0.12)	(-0.24)	(0.73)	(0.81)
SD_I	?	- 0.1136	-0.0384	-0.0182	-0.0203
SD_I	?	(-0.44)	(-1.39)	(-0.61)	(-0.61)
TC_I	?	0.0087	-0.0174	0.0096	-0.0078
TC_I	?	(0.57)	(-1.06)	(0.55)	(-0.39)
TX_I	?	0.0075	0.0166	0.0353(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.3774(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )
TX_I	?	(0.69)	-1.41	(2.79)	(2.65)
TS_I	?	- 0.1874	-0.0056	0.0052	0.0208
TS_I	?	(-1.54)	(-0.43)	(0.37)	(1.31)
VP_I	?	0.0090	0.0284(^* Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.0162	0.02 72
VP_I		(0.66)	(1.94)	(1.03)	(1.53)
R²a		59.61%	57.04%	60.98%	59.92%
F test		0.00(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.00(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.00(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )	0.00(^*** Models 1 and 2: Disclosure compliance index obtained employing the dichotomous approach to calculate the overall index and the strict criteria (Model 1) and the tolerant criteria (Model 2) for establishing applicability of a subject to a firm. )
N		360	360	360	360

Universidade de São Paulo, Faculdade de Economia, Administração e Contabilidade, Departamento de Contabilidade e Atuária Av. Prof. Luciano Gualberto, 908 - prédio 3 - sala 118, 05508 - 010 São Paulo - SP - Brasil, Tel.: (55 11) 2648-6320, Tel.: (55 11) 2648-6321, Fax: (55 11) 3813-0120 - São Paulo - SP - Brazil
E-mail: recont@usp.br

Acompanhe os números deste periódico no seu leitor de RSS

[tfn01t10] CPC is the Brazilian Equivalent for each IAS/IFRS. ICPC is CPC's Interpretation and OCPC is CPC's Orientation. "NA" indicate that there is no corresponding IAS/IFRS for the Brazilian CPC.

Panel A: Correlation Matrix Between Independent Variables and Dependent Variable as per Model 1
		SIZE	PROF	LEV	INT	BIG4	GOV	DISC
DISC₁	Pearson Correlation	0.714(***)	0.024	0.121(**)	0.410(***)	0.533(***)	0.389(***)	1
	Sig. (2-tailed)	0	0.651	0.021	0	0	0
	N	360	360	360	360	360	360	360
Panel B: Correlation Matrix Between Independent Variables and Dependent Variable as per Model 4
		SIZE	PROF	LEV	INT	BIG4	GOV	DISC
DISC₄	Pearson Correlation	0.684(***)	0.034	0.060	0.314(***)	0.589(***)	0.357(***)	1
	Sig. (2-tailed)	0	0.515	0.227	0	0	0
	N	360	360	360	360	360	360	360

Brasil

Brasil

Mandatory IFRS Adoption in Brazil (2010): Index of Compliance with Disclosure Requirements and some Explanatory Factors of Firms Reporting* * Paper presented at the VII Congresso AnpCONT, Fortaleza, Brazil, 2013 and American Accounting Association Annual Meeting, Anaheim, USA, 2013.

Mandatory IFRS Adoption in Brazil (2010): Index of Compliance with Disclosure Requirements and some Explanatory Factors of Firms Reporting^* * Paper presented at the VII Congresso AnpCONT, Fortaleza, Brazil, 2013 and American Accounting Association Annual Meeting, Anaheim, USA, 2013.