ANALYSIS OF IMPACTS OF INTERNATIONAL ACCOUNTING STANDARDS ON NET INCOME AND EQUITY OF COMPANIES IN THE TEXTILE INDUSTRY

Abstract

This study investigates if there are significant differences between the value of the stockholders’ equity, net profit and return on equity (ROE) of publicly traded companies in the textile sector, disclosed in the years 2007, 2008 and 2009, which were calculated under different accounting rules (CPC/IFRS and BRGAAP). In addition, the study sought to identify which changes in accounting practices were more significant and frequent in the analysis period. The sample is comprised of 23 publicly traded companies listed on Bovespa. The analysis was conducted using average difference test (Student's t and Wilcoxon). The results showed statistically significant differences between the stockholders in 2008 (11.2%) and 2009 (11.6%), net profit in the year 2009 (5.1%) and the ROE in the year 2009 (-10%) established under separate accounting rules (BRGAAP and CPC/IFRS), being the main rule responsible for this difference was the rule CPC27 – fixed assets. The contribution of the study is to demonstrate that the adoption of international accounting standards can compromise the comparability of financial statements for periods before and after its adoption. The study is also relevant for analyzing the impacts of changing accounting practices within a specific economic sector, thereby contributing to a better understanding of the reality of accounting concerned sector.