Accounting regulation in Brazil: an analysis of processes audiencia public accounting pronouncements committee (CPC) in the years 2007 to 2011

Abstract

This study aims to investigate the due process of the public hearing regarding standards issued by the Brazilian Standards Committee - CPC from 2007 to 2011 More specifically, we have sought to identify the suggestions made by the interest parties that took part in the public hearing and their main attributes (frequency and nature of the suggestions) as well as the ratio of their acceptance by CPC. After performing quantitative analysis (non-parametric statistical tests of differences in proportions) and qualitative analysis of the data generated by the public hearing reports, we concluded that CPC focused its efforts on a maximum convergence with IFRSs. In order to conclude that, we took into account the phases of the due process; the class of the standards issued (with and without matching IFRSs); and the nature of the suggestion made (accounting dimension among measurement, recognition and disclosure). Hence, CPC has accepted a small number of suggestions from interest parties (7.4% of the cases) and the great majority of the suggestions accepted rest upon full disclosure, which showed no significant impact on accounting practices.