Property, Plant and Equipment disclosure requirements and firm characteristics: the Portuguese Accounting Standardization System

Article English OPEN
Botelho, Rafaela ; Azevedo, Graça ; Costa, Alberto J. ; Oliveira, Jonas (2015)
  • Publisher: HRMARS
  • Journal: volume 5, issue 1 January, pages 58-71
  • Related identifiers: doi: 10.6007/IJARAFMS/v5-i1/1459
  • Subject: Reporting, Disclosure, Mandatory, Property, Plant, Equipment

In the new Portuguese accounting frame of reference (Portuguese Accounting Standardization System – Sistema de Normalização Contabilística), the issues related to Property, Plant and Equipment assets are dealt with in the Accounting and Financial Reporting Standard (Norma Contabilística de Relato Financeiro – NCRF) 7 (Property, Plant & Equipment). The present study intends to assess the degree of compliance with the disclosure requirements of this accounting standard by Portuguese unlisted companies. Moreover, it tries to identify the factors that influence their level of disclosure. The financial statements for 2010 and 2011 were content analyzed and a multiple linear regression model was used to assess the motivations for companies to comply with disclosure requirements. Results indicate that older companies with lower levels of foreign activity present higher levels of disclosures. The type of auditing firm is also a factor that influences the level of compliance with NCRF 7.
  • References (57)
    57 references, page 1 of 6

    1. Adelopo, I. (2011). Voluntary disclosure practices amongst listed companies in Nigeria. Advances in Accounting, 27 (2), 338-345.

    2. Akhtaruddin, M. (2005). Corporate mandatory disclosure practices in Bangladesh. The International Journal of Accounting, 40 (4), 399-422.

    3. Aljifri, K. (2008). Annual report disclosure in a developing country: The case of the UAE. Advances in Accounting, 24 (1), 93-100.

    4. Archambault, J.J. & Archambault, M.E. (2003). A multinational test of determinants of corporate disclosure.The International Journal of Accounting, 38 (2), 173-194.

    5. Aharony, J., Barniv, R. & Falk, H. (2010). The impact of mandatory IFRS adoption on equity valuation of accounting numbers for security investors in the EU. European Accounting Review, 19 (3), 535- 578.

    6. Armstrong , C., Barth, M.E. & Riedl, E.J. (2010). Market reaction to the adoption of IFRS in Europe. The Accounting Review, 85 (1), 31-61.

    7. Birt, J.L., Bilson, C.B., Smith, T. & Whaley, R.E. (2006). Ownership, competition and financial disclosure, Australian Journal of Management, 31 (2), 235-263.

    8. Barth, M.E., Landsman, W.R. & Lang, M.H. (2008). International accounting standards and accounting quality. Journal of Accounting Research, 46 (3), 467-498.

    9. Beuren, I., Heion, N. & Klann R. (2008). Impact of the IFRS and US-GAAP on economic financial indicators. Managerial Auditing Journal, 23 (7), 632-649.

    10. Branco, M.C. & Rodrigues, L.L. (2008). Social responsibility disclosure: a study of proxies for the public visibility of Portuguese banks. British Accounting Review, 40 (2), 161-81.

  • Metrics
    1
    views in OpenAIRE
    0
    views in local repository
    0
    downloads in local repository
Share - Bookmark