THE IMPLEMENTATION OF EQUITY ACCOUNTING PROCEDURES AND TAX TRANSPARENCY

Abstract

This research is dedicated to assessing the influence of the adoption of the Plan for the Implementation of Equity Accounting Procedures - PIPCP on the tax transparency index of Brazilian states. The descriptive, documentary, quantitative research has a sample composed of data from the 26 Brazilian states and the Federal District, analyzed in the period between 2014 to 2019. To measure the relationship, a Pearson univariate correlation was applied, through regression analysis tobit. The findings contribute as a basis for social control and for managers, professionals in the public area and the Courts of Auditors, when they demonstrate that accounting is showing reliable and comparative information, reinforcing the benefits of fiscal transparency. As a result, the evidence pointed to a positive relationship between the levels of Implementation of PIPCP in the Brazilian states and the level of fiscal transparency, suggesting that the modernization of Accounting in the public sector tends to issue up-to-date and quality financial information.