Practices of Information Disclosure about Operating Segments in Brazil

Abstract

This study aims to identify the practices of information disclosure about operating segments presented by Brazilian companies. The years 2010 and 2011 are covered, and 2010 was the first year of this kind of compulsory disclosure by Brazilian public companies. The descriptive research is developed using the content analysis of companies’ financial statements, with reference from the requirements contained in Pronouncement CPC 22. The data, referring to the financial statements of the companies, are collected in the website of the Comissão de Valores Mobiliários (CVM). The study covers 272 companies active in the BM&FBOVESPA, distributed into 20 economic sectors, totaling 544 financial statements analyzed. It was concluded that there was no uniformity in the segments disclosure practices of the companies, as expected (once that exist the discretion allowed by CPC 22). Differences are identified both at the types of disclosures as at the level of detail of the same. Some of the companies hadn't even directly mentioned the existence of operating segments. It is also noted that the level of disclosure of companies have not explored all the points mentioned by the Pronouncement, and thus the results show there was not full compliance with the requirements of CPC 22 by these companies, and the disclosure practices have a low level of detail and are superficial in several respects.

Keywords

• Operating Segments
• CPC 22
• Segment reporting
• Disclosure practices