New accounting directed to biological assets and their importance for agribusiness

• Grant number: 14/09358-8
• Support Opportunities: Regular Research Grants
• Start date: September 01, 2014
• End date: February 28, 2017
• Field of knowledge: Applied Social Sciences - Administration - Accounting
• Principal Investigator: Ricardo Luiz Menezes da Silva
• Grantee: Ricardo Luiz Menezes da Silva
• Host Institution: Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto (FEARP). Universidade de São Paulo (USP). Ribeirão Preto , SP, Brazil
• Associated researchers: Paula Carolina Ciampaglia Nardi

Abstract

This research project investigates whether there was indeed an increase in the accounting information quality associated with CPC 29, a technical pronouncement introduced after the convergence process to international accounting standards and applied for agribusiness companies. Additionally, the investor informational needs will be assessed in order to offer solutions to reduce asymmetric information. Considering the importance of the sector to the economy is healthy the existence of funding alternative sources, such as the capital market. The relevance of this project is based on the strategic role that this sector has for the country, providing greater economic and social development. In this sense, the growth and strengthening of agribusiness are favorable for the economy, considering the economic and social consequences. Thus, the financial statements must be relevant, understandable and useful for the purpose of investment decision. The accounting standard for Biological Assets and Agricultural Produce proposes to regulate the accounting practices of companies that have live animal or plant, bringing significant changes to the companies' balance sheets, as the application of fair value in order to bring more timely information. However, some studies put in check this informativeness, depending on institutional aspects and manager incentives. The agent can use the standard discretion in order to meet specific interests, resulting in poor accounting reports, or that do not adequately represent the economic and financial reality of the firm. (AU)