Effects of CPC 47 (IFRS 15) from the perspective of revenue management in the brazilian stock market

Abstract

This study analyzed the effect of adopting CPC 47 (IFRS 15) for revenue recognition on the quality of accounting information from the perspective of revenue management in the Brazilian stock market. The study sample has a total of 560 observations corresponding to 112 companies from 2016 to 2020. The models by specific discretionary accruals of revenues proposed by Caylor (2010) and Stubben (2010) were considered to measure the management levels. As a method of analysis, we used regression models with panel data and tests at a significance level of 5%. According to the results obtained, it was impossible to confirm that adopting CPC 47 (IFRS 15) affected the quality of accounting information from the increase in revenue management levels, as well as whether the effects on the specific sectors indicated by the literature as more impacted were more significant than the other sectors in the Brazilian capital market. The research is relevant because it advances existing studies by using two different revenue management models to analyze the effects of specific accruals after adopting the standard and, in addition, extends the period and sample of Brazilian companies. Therefore, this research contributes to deepening discussions on the effects of applying accounting standards and assists in the analysis of regulatory bodies, preparers, auditors, and financial information on the effects of the new accounting standard after adoption, especially in the Post-Implementation Review (PIR) process of IFRS15.