Study about the relevance and the disclosure of biological assets of listed companies in BM&FBOVESPA

Abstract

The main objective this article is to verify that the information content of biological assets disclosed in the financial statements are relevant and, the secondary objective perform content analysis of the notes verifying the compliance of information supplied by entities with CPC 29. The study sample was composed of publicly traded stock companies listed on the BM & FBOVESPA with data for the year 2010 and 2011. The empirical tests were conducted applying relevance models, using observations of 347 active companies characterizing a study model pooled ordinary least squares – POLS, including companies that have reported biological assets into account specific .The companies that had values of biological assets posted have had analyzed explanatory notes referring to this account. The results provide empirical evidence that the information content of biological assets disclosed by companies is not relevant to the sample. In relation the content analysis of the notes was checked a partial compliance of the standard, there is a disparity in the information disclosure practices by the companies analyzed, as well as an omission of items required by the standard. Can be inferred that loss of the relevance has occurred, in part, by the poor quality of the notes, which may make it difficult for outside users in interpreting the information disclosed.

Keywords

• Biological assets
• CPC 29
• Fair value
• Relevance of accounting information