Compliance level of CPC 28: an analysis in Brazilian open companies

Abstract

This research aimed at analyzing the compliance of companies with the CPC28 - Investment Property, in order to check if they are disclosing the information required by standard pronouncement. To achieve the proposed objective, financial statements and accompanying notes from December 2012 were collected and analyzed. The information published by the companies based on the CPC28 disclosure items were analyzed. The items were divided into blocks, block 1 mandatory items for all companies, block 2 only for those who have chosen to measure the cost method, and block 3 for companies who have chosen fair value method. Levels of disclosure for each item were descriptively analyzed. Besides that, a statistical test was carried out to see the correlation between the relevance of PPI over total assets and the level of disclosure, showing an average positive correlation between both. It was possible to verify that the level of disclosure for companies that have opted for cost method was more satisfactory than those that opted for fair value. Those companies that obtained the highest percentage of dissemination are the real state ones, because they have on their balance sheets significant amounts of properties for investment, which is from where they get their income. Another point found out in this research was that there is a difficulty of disclosuring the financial statements and notes, once some companies put the same information in different topics through out the balance sheet, and it was noticed that most companies are still in a low level of disclosure. The research shows that there is lack of important information items for users' analysis, making it difficult to compare companies.