IFRS adoption and company conservatism in Colombia and Brazil

Autores/as

  • Marta Cristina Pelucio-Grecco Faculdade FIPECAFI
  • Cecilia Moraes Santostaso Geron Universidade Presbiteriana Mackenzie
  • Hugo Arles Macias-Cardona Universidad de Medellin

Palabras clave:

IFRS, theory of cultural influence, conservatism index, Brazil, Colombia

Resumen

We analysed changes in the levels of conservatism in Colombia and Brazil after International Financial Reporting Standards (IFRS) adoption, in accordance with the theory of cultural influence in accounting (Gray, 1988). We found that IFRS adoption resulted in decreased conservatism of accounting practices in Brazil; however, it resulted in increased conservatism in Colombia. We found uniformity in conservatism among economic sectors in Brazil. In Brazil and Colombia, the industrial, investment, commercial, and financial sectors showed a decrease in conservatism, as expected. The service and public sectors showed an important increase in conservatism in Colombia, however.

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Publicado

2019-10-07

Número

Vol. 16 Núm. 3 (2019): Jul/Sep

Sección

Articles

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