Contingent Assets Research Articles

An IFRS Decision Heuristic—A Model for Accounting for Credit Card Rewards Programme Transactions

Guidance on the appropriate accounting treatment of a credit card rewards programme (CCRP) transaction after the effective date of IFRS 15 is needed due to current uncertainty and inconsistencies. The objective of the research was to develop a theoretical model for the accounting treatment of CCRP transactions after the effective date of IFRS 15 by considering the relevant literature, including IFRS. This non-empirical qualitative literature study utilised document analysis and model building to construct the theoretical model. To provide practical guidelines in accounting for a CCRP transaction, a model embedded in a decision tree was developed as a heuristic to provide for various possible accounting treatments. It was found that a CCRP transaction can be accounted for in terms of IAS 37 Provisions, Contingent Liabilities and Contingent Assets (as an expense and provision), in terms of IFRS 9 Financial instruments (as an expense and financial liability), or in terms of IFRS 15 Revenue from contracts with customers (as a deferred revenue). The value of this article is that it provides answers in a clear and concise matter on a single page dealing with all the various elements of a CCRP transaction that impacts the accounting treatment. The CCRP theoretical model developed could eliminate uncertainty amongst CCRP management and increase the decision-usefulness of financial information.

ПРИНЦИПЫ РЕАЛИЗАЦИИ ESG-ИНВЕСТИЦИЙ В СОВРЕМЕННЫХ УСЛОВИЯХ

The research is concentrated on the issues of the current ESG investing trends. There are main ESG factors that influence the inclusion of contingent assets in an investment portfolio. Considering environmental, social and governance factors, we provided the methodology, which establishes specific processes for the selection of financial instruments. We also examined the international practice of issuer sustainability analysis in the current economic environment. The analysis was based on data of more than 2,000 US ETFs with ESG scores, returns and volatility indicators. In addition, the article presents ESG criteria for socially responsible investment. All the factors identified are graded according to their basic properties and objectives. Finally, the study proposes a sequence of financial asset searches in order to realise the urgent sustainable evelopment agenda of today’s economy.

Implicit government guarantees and bank risk

We develop a model on bank risk and implicit government guarantees. This model concerns the willingness and capacity of implicit government guarantees. Using the Option Pricing Theory, we derive a mathematical formulation of maximizing the bank’s net present value (NPV) with implicit government guarantees. Unlike previous work, both the loan portfolio and the bank’s NPV are regarded as a combination of options underlying the risky project. We conduct comparative static analyses and numerical examples to examine how implicit government guarantees and capital control affect bank risk and its asset scale. The main insight of our analysis is that implicit government guarantees have some unintended consequences: (a) Inefficient and excessive risk taking (including bank’s asset and overall risk); (b) Inefficient investment if there is no binding capacity constraint. We show that it is mainly due to the bank's excessive reliance on contingent assets. In addition, we demonstrate the ineffectiveness of capital constraint on risk control under certain circumstances. Therefore, we suggest that the gradual withdrawal of implicit government guarantees should be accompanied by multiple combinations of regulatory measures and proper institutional reform to avoid risk surges.

State aid and IFRS accounting policy

Introduction. This paper establishes that accounting policy is an important step in the organization of accounting. The paper shows that an effective accounting policy allows forming reliable and high-quality indicators in the financial statements. This study examines the main ideas by scholars on problems of IFRS accounting policy. Also, the paper gives a critical assessment their main positions. The purpose of the paper is to analyze the system of accounting standards for formation state aid accounting policy. Results. The study shows that the state aid transactions accounting policy is a complex system of interrelated standards. Firstly, the article examines the impact of international accounting standards on the formation of accounting policies in general. Secondly, research shows that other standards also have a partial impact. Also, disclosing of significant accounting policies allows bettering understanding the methodological basis of financial reporting. Moreover, business entities adhere to the principle of conciseness in the formation of accounting policies. Finally, the article highlights the main elements of the State aid transactions accounting policy in accordance with IAS 20: recognition of state aid; methods of accounting for state grants; types and forms of state aid; recognition of contingent assets and contingent liabilities at the recognition of state aid; methods of presenting information on government grants related to assets and government grants related to income; disclosure of information in the notes to the financial statements. Conclusion. Accounting policy is based on standards and judgments of management, which are proved by significant facts. Therefore, IFRS accounting policies should be viewed as a philosophy of choosing alternatives and accounting methods for business.

ТРАНСФОРМАЦІЯ СУЧАСНИХ МЕТОДИК ФІНАНСОВОГО АНАЛІЗУ ЗВІТНОСТІ ОБ’ЄДНАНЬ ПІДПРИЄМСТВ

The main goal of this research is to identify those indicators of reporting of associations of enterprises that change their nature or content under the influence of consolidation against the background of the application of IFRS, as well as areas of transformation of methods of its analysis. The article reveals the essence of consolidated financial statements and the peculiarities of the process of its formation. Financial information becomes the main tool of communication and formation of business image of enterprises in the market environment. The carrier of such information is the financial statements, which are compiled according to international standards, which are constantly progressing and reforming. As a result, business owners have more and more freedom in its formation, despite the global harmonization of the list of indicators and their content, which allows you to present your business in a favorable light and assess those aspects of contractors that are most important for further cooperation. The main information needs of groups of users of consolidated financial statements are considered. The authors specify the areas of analysis of the financial and property condition of the group of enterprises according to the consolidated financial statements and substantiate the reasons for the need for their transformation. Some aspects of the analysis of the consolidated financial statements are characterized, which do not allow to form a correct idea of the financial and property condition of its individual elements. The accounting components of the consolidated financial statements are determined, which may distort the results of the coefficient analysis and indicators of their modification. The peculiarities of the analysis of such reporting are due to the transformations of the accounting content of its indicators - the reflection of contingent assets, liabilities, risks, possible costs and revenues. All components of analysis methods - horizontal, vertical, trend, and especially - coefficient - undergo certain changes. The need to disseminate cost-oriented approaches in the analysis of consolidated financial statements is substantiated.

ПОРЯДОК ІНДЕНТИФІКАЦІЇ РЕЗЕРВІВ ТА МЕТОДИКА ВІДОБРАЖЕННЯ ЇХ В ОБЛІКУ – ІНСТРУМЕНТ УПРАВЛІННЯ РИЗИКАМИ РОЗРАХУНКІВ ПІДПРИЄМСТВ

Іt is proved that business risk management of agro-industrial enterprises requires the introduction of an effective risk management system. In this aspect, the risk management methodology plays an important role and determines the future effectiveness of risk management methods, actions and measures. The study identified three groups of accounting reserves, which cover all components of calculations as an integrated object of accounting and are one of the effective methods of risk management in optimizing the impact of risk on the activities of the business entity. The procedure for selecting a reserve in risk management of enterprise settlements is developed, proposals are made in terms of methodology for calculating reserves taking into account the impact of risks, implemented through the matrix of risk calculations of agribusiness enterprises, group integrated risk indicator and individual risk indicator for individual settlements with debtors / creditors. It is determined that one of the methods of risk management of settlement operations of agribusiness enterprises is internal provisioning to cover the negative consequences of risks arising from non-receipt / non-repayment of receivables and payables for settlement operations with direct and indirect business interest. It is proposed to improve the method of forming reserves through the accumulation of information on the accrual of accounting reserves in transit account 841 "Reserves for settlements in risk conditions", in particular in social and environmental areas, which will assess the effectiveness of risk management in terms of internal provisions. integrated risk reporting on the components of the agribusiness company. It is determined, in addition to the formation and accounting of reserves for risk management of settlements, to keep off-balance sheet records of contingent assets and liabilities, as well as guarantees and collateral received / provided. This will allow to clearly identify possible threats, risk factors and the need to review the size of the reserve, the feasibility of additional accrual or reversal.

Documenting the Results of Audit of the Information Disclosed in the Notes to the Financial Reporting Compiled by International Standards

Financial reporting releases the information requiring disclosure in accordance with national or international accounting and reporting standards. This information is usually released in the notes to the financial reporting, intended for a broader range of users. The notes are the most informative document, by which a user of the reporting can assess the company’s solvency, financial viability or business activity, can be informed about the terms of transactions with related parties, can make assumptions and receive data on management accounting, which are laid as the basis for the management strategy building. The released information is subject to obligatory disclosure, as its content is to be analyzed by national and international regulators and auditors in a way similar to the principal forms of financial reporting. An auditor assesses the received audit evidence in view of its sufficiency and reliability. Results of audit procedures can be summarized and documented. Because the International Standards on Auditing do not provide examples of documenting, the working document “The auditor’s testing of disclosure of the information attached to the financial reporting compiled by IFRS” has been formed, to support the process of documenting audit procedures with respect to the information given in the notes to the financial reporting. Using this working document, an auditor is able to obtain detailed information about a company and indicators of its financial reports, about its items and transactions that, not being subject to recognition in the reporting, are important for the management, about the accounting foundations and the opinions of management on which a company relied in compiling the reports. Depending on the operation specifics of a company, the working document can be supplemented by the following sections: IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”, IFRS 8 “Operational Segments”, IAS 19 “Employee Benefits”, IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”, IAS 40 “Investment Property” etc. The test, which is a unified working document, can be used by any audit firm. The auditor’s opinion on the information disclosure in the notes to the financial reporting is vitally important bearing in mind that not all the users of financial reports have deep knowledge of the International Accounting and Reporting Standards, but all of them need unbiased and complete data about the company status and performance.

Provisions, contingent liabilities and contingent assets in group reporting of companies

Subject. The article makes an attempt to develop recommendations for provisions, contingent liabilities and conditional assets accounting under RAS and IFRS for companies operating in the real economy, based on the survey conducted using the sampling of Top 600 largest Russian companies at year-end2015 by Expert RA. Objectives. The aim of the study is to improve the quality of financial statements of Russian companies prepared under RAS and IFRS to the extent of provisions, conditional liabilities, contingent assets, and to perfect methods of relevant reporting data analysis. Methods. In the research, I applied the method of comparative analysis. Results. The paper presents a comparative analysis of the existing accounting methods for provisions, contingent liabilities and contingent assets under RAS, IFRS and GAAP, namely, systematizes the characteristic features and highlights the specifics of accounting systems. I examined the impact impact of data on provisions, contingent liabilities and contingent assets on evaluation of financial result of companies and developed recommendations to improve accounting treatment of provisions, contingent liabilities and contingent assets under RAS and IFRS. Conclusions. The offered recommendations may enhance the quality of financial statements of companies operating in financial and real sectors of the economy, as well as the effectiveness of investment decisions based on financial statement data.

A Macro-Financial Model of the Eurozone Architecture Embedded in the Global Offshore US-Dollar System

It is a convention to say that the Eurozone architecture is ill-constructed and deficient. However, monetary architecture is not a well-defined term in monetary theory, and there is no consensus what the Eurozone architecture is beyond being a metaphor. By combining insights from the research strand of (critical) macro-finance, this study from the Global Economic Governance Initiative at the Global Development Policy Center develops a comprehensive definition of monetary architecture in general and presents an inductive, institutionalist model of the Eurozone architecture in particular. The model portrays two monetary jurisdictions—the US and the Eurozone—which have a hierarchical relationship. Each monetary jurisdiction is subdivided into four segments of central banks, commercial banks, non-bank financial institutions and a ‘fiscal ecosystem.’ Different institutions are located within these segments, represented as balance sheets. These have a hierarchical relationship with each other as well, and interlock through the instruments they hold as assets and liabilities. This adds up to a fully self-referential credit system. Each institution has its own respective elasticity space for balance sheet expansion that depends on available counter-parties, stipulations for allowed on-balance-sheet activities and available contingent assets and liabilities which are provided by higher-ranking institutions and only become real once a crisis hits. A monetary architecture is thus defined as a historically specific setup of segments, institutions, instruments and elasticity space within a monetary jurisdiction. The model emphasizes the centrality of the TARGET2 system, shows how offshore US-Dollars are enmeshed in the Eurozone, and rejects the notion that a monetary architecture could ever ‘finished’. It will serve as a starting point for future descriptive and policy-oriented research.

Poreski i računovodstveni aspekt rezervisanja

At the end of the reporting period, when preparing financial statements, it is necessary to pay attention to whether the financial statements include all expenses of the accounting period. Provisions are recognized as an expense in the period only when their recognition in the current period meets certain requirements prescribed by accounting standards. The use of provisions is usually recorded by forming a liability to the supplier, employee and other persons by directly reducing the provision, is the cost is recorded in the Income Statement. IAS 37 Reservation, Contingent Liabilities and Contingent Assets defines a provision as a liability with an uncertain maturity or an uncertain amount, and a liability is a present obligation of an entity based on past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits. represent economic benefits from the business entity. We must emphasize that provisions are also defined by other standards - for example, IAS 19 - Employee Benefits, which defines provisions for benefits and other employee benefits. However, in this paper, the author deals with the tax and accounting treatment of certain provisions that appear in practice, such as: reservation for severance pay, reservation for costs in the warranty period, reservation for awards and other benefits, reservation for litigation costs, etc.

Avaliação do nível de aderência da NBC TSP 03 (provisões, ativos e passivos contingentes) em face da convergência internacional da contabilidade pública brasileira

O processo de convergência das normas de contabilidade do setor público brasileiro aos padrões internacionais encontra-se em fase de implementação desde 2008 com finalização prevista para 2023. Nesse sentido, este trabalho tem como objetivo avaliar o nível de aderência da NBC TSP 03 – provisões, ativos e passivos contingentes – por parte das capitais brasileiras no período compreendido entre 2015 a 2017. Justifica-se o estudo em razão da amplitude continental do país e da diversidade de alterações propostas pelas NBCASP. A metodologia utilizada baseou-se no exame de balanços patrimoniais, notas explicativas, anexos de riscos fiscais (ARF), bem como solicitação de informações concernentes à existência de controles contábeis e extracontábeis para o registro dos ativos e passivos contingentes. O período da coleta se referiu aos anos de 2015 a 2017, sendo os dois primeiros antes da vigência da norma e o último, exercício relativo aos primeiros registros. Os resultados indicam que após a vigência da NBC TSP 03, a representatividade das provisões aumentou (de 15% para 61%) comparado aos passivos contingentes (1% constante). Já a divulgação de informações dos três itens em notas explicativas foi considerada insatisfatória, sendo os ativos contingentes o mais deficitário. Não obstante, há indícios de que a aderência da NBC TSP 03 somente se iniciou face à vigência da norma em 2017 (último ano da pesquisa), muito embora essas disposições já se estejam na terceira edição do MCASP de 2010.

Prudence vs. Credibility. A Formal Comparative Analysis between Romanian Accounting Regulations and IFRS

Starting from the controversial influence that prudence may have on the credibility of accounting information and from the fact that there are different views of the global accounting systems on this concept, the present research aims to analyze the level of formal convergence between the Romanian accounting regulations and the International Financial Reporting Standards (IFRS) on the application of prudence. In this regard, the requirements for provisions, property, plant and equipment, inventories and receivables were considered, with a focus on asset depreciation and impairment losses, elements that were considered in this case as being representative for prudence in accounting. Using the Jaccard coefficients, the paper compares the requirements of the Romanian accounting regulations, represented by OMFP no. 1802/2014 with the ones presented in IAS 16 „Property, plant and equipment”, IAS 36 „Impairment of Assets”, IAS 38 „Intangible Assets”, IAS 37 „Provisions, Contingent Liabilities and Contingent Assets”, IAS 32 „Financial Instruments: presentation” and IFRS 9 „Financial Instruments”. The results show that the highest degree of convergence is identified for the provisions, and the lowest for financial assets. Also, the requirements on depreciation and impairment losses presented in OMFP no. 1802/2014 differ significantly from those presented in IFRSs.

Общее представление по организации учета будущего урожая, используемого в качестве залога, согласно мсфо

Nowadays, there is no tool to address the issue of valuation and accounting for future crop used as deposit for lending agricultural production in accordance with the requirements of IFRS, which led to the relevance of the study. To solve this issue, it is proposed to develop a methodological aspect of valuation at fair value of the future crop. However, the valuation procedures within the framework of IFRS have been sufficiently developed and should be adequately met for each case separately according to the division, established in IFRS. However, there are a number of features in the valuation of the future harvest, which is pledged, according to IFRS. In this regard, the limits of the impact of IAS 23 “Borrowing costs”, IAS 37 “Estimated liabilities, contingent liabilities and contingent assets” and IAS 41 “Agriculture” on the formation of value estimates for the future harvest, used as deposit, in dynamics, as well as organizational and technological stages, are determined. It is noted that these boundaries are indicative, because of in the IFRS itself and in the guidelines they do not describe such a specific asset as the future crop used as deposit.

Provisions, contingent liabilities and contingent assets in group reporting of companies

Provisions, contingent liabilities and contingent assets in group reporting of companies

Cross-country Differences in Reporting Practices – the Case of Provisions for Liabilities

Purpose: The aim of the study was to explore and compare reporting practices on provisions for liabilities in different countries. Methodology: The research was limited to the types of provisions that are addressed in the International Accounting Standard 37 - Provisions, Contingent Liabilities and Contingent Assets. For the purpose of the study, financial statements of the biggest public companies in Great Britain, Germany and Poland have been chosen to be taken into consideration. The following detailed issues have been explored: - Presentation of the types of provisions in a statement of financial position and additional notes to a financial statement, - Presentation of the amounts of provisions made, used, and reversed during a given period and the effects of changes in the discount rate, - Scope and quality of descriptions of the nature of obligations presented by entities. The results of the analysis have been viewed from two perspectives - the areas of compliance and non-compliance of reporting on provisions with IFRS have been identified and a comparison of the extent of compliance with particular requirements between companies from different countries has been developed. Findings: The results of the analysis have revealed that companies from selected countries demonstrate different levels of compliance with International Financial Reporting Standards (IFRS). Substantial differences in the scope and the quality of descriptive disclosures on provisions have been also identified. Originality/value: The study contributes to the research on cross-country differences in reporting practices and indicates the need for a further analysis of the underlying determinants.

State and Challenges of Environmental Accounting in the Republic of Kazakhstan

The present paper is devoted to the organization and improvement of the maintenance of environmental accounting in Kazakh companies in market conditions. It deals with environmental costs, which present a more traditional area of environmental reporting and are usually given by accountants and ecologists. Environmental prepaid expenses (as well as any potential costs) are a consequence of the events of the previous periods and the anticipated events, the consequences of which should lead to a decrease in the financial performance of the company. As a result of studying the problem of environmental cost accounting, the authors determined the need for a competent and professional approach to cost accounting in the field of environmental protection.
 The authors examined the costs by the places of their origin, studied the structure of environmental costs, considered the requirements of International Accounting Standard 37 “Provisions, Contingent Liabilities and Contingent Assets” on the establishment of valuation provisions. This article describes the process of allocation of environmental costs by certain types of products, manufacturing lines and facilities. The given classification of costs reflects the environmental measures related to human activities for the protection of the environment, enshrined to some extent in regulatory documents and methodical positions. The authors emphasize the role of public authorities in the establishment of payments by the types of waste. In this connection, it refers to the recovery of environmental costs and the reduction of discharges, which, consequently, results in the reduction of payments.

Periodic Heteroskedastic RegARFIMA Models for Daily Electricity Spot Prices

Although the main interest in the modelling of electricity prices is often on volatility aspects, we argue that stochastic heteroskedastic behaviour in prices can only be modelled correctly when the conditional mean of the time series is properly modelled. In this paper we consider different periodic extensions of regression models with autoregressive fractionally integrated moving average disturbances for the analysis of daily spot prices of electricity. We show that day-of-the-week periodicity and long memory are important determinants for the dynamic modelling of the conditional mean of electricity spot prices. Once an effective description of the conditional mean of spot prices is empirically identified, focus can be directed towards volatility features of the time series. For the older electricity market of Nord Pool in Norway, it is found that a long memory model with periodic coefficients is required to model daily spot prices effectively. Further, strong evidence of conditional heteroskedasticity is found in the mean corrected Nord Pool series. For daily prices at three emerging electricity markets that we consider (APX in The Netherlands, EEX in Germany and Powernext in France) periodicity in the autoregressive coefficients is also established, but evidence of long memory is not found and existence of dynamic behaviour in the variance of the spot prices is less pronounced. The novel findings in this paper can have important consequences for the modelling and forecasting of mean and variance functions of spot prices for electricity and associated contingent assets.

Corporate governance and provisions under IAS 37

PurposeThe purpose of this paper is to illustrate the extent of disclosure of provisions reported under IAS 37 provisions, contingent liabilities and contingent assets and explore the relation between provisions and corporate governance.Design/methodology/approachThe current research utilizes a panel data analysis using a sample of 1,078 firm-year observations from Borsa Istanbul between the years 2005 and 2010.FindingsOverall findings indicate that 62 percent of 1,078 firm-year observations recognize provisions, and among those, only 32 percent provide IAS 37’s full disclosure requirements. Firms that recognize provisions have larger board of directors and are more likely to be characterized with concentrated ownership and institutional owners. Also, firms with larger board of directors, greater independence and concentrated ownership have higher total provision/total debt ratios. Finally, firms that make full disclosure of provisions are more likely to have larger boards, higher ownership concentration and institutional owners and less likely to have CEO duality.Research limitations/implicationsAs with all research, there are several limitations of this study. The study suffers from a lack of literature about provisions under IAS 37. The lack of literature directly focusing on provisions or IAS 37 appears to be one of the main limitations as well as one of the main contributions. Since this study focuses on one country, the comparison is not possible. Further research may contribute to literature by the use of other emerging economy’s capital market data. Moreover, further research can cover any other mandatory disclosure information specified in IASs/IFRSs and can provide comparative results about the compliance and strictness of the mandatory disclosure regime.Practical implicationsThis study can be of interest to government, investors, business management, regulatory bodies, educators, researchers, accountants, auditors and scholars particularly in the field of accounting by seeking to make theoretical and practical contributions in the area of accounting disclosures and also serves as benchmark for future researches on corporate disclosures. Also this study provides significant insights to accounting regulators who set disclosure requirements.Originality/valueAccurate corporate reporting is a necessary tool for the short- and long-term survival of the firms, hence the capital markets. Studying the level of disclosure will enable us to have additional insights about corporate reporting and will enhance the understanding of the nature of corporate reporting in developing countries. Disclosure practices by developing countries were empirically investigated in the past; however, the relation between provisions under IAS 37 and corporate governance has been unexplored in the literature. Thus, to the best of the authors’ knowledge, this is a pioneering research on provisions and corporate governance structure.

A influência da cultura e do julgamento profissional sobre a contabilidade: uma análise sob o ponto de vista dos preparadores da informação em Portugal

As normas emitidas pelo International Accounting Standard Board (Iasb) são normas baseadas em princípios, as quais delegam ao julgamento profissional a decisão em matérias contabilísticas a partir dos conceitos existentes nas referidas normas, com implicações no relato financeiro. O objetivo do presente estudo passa por analisar a influência da cultura sobre o julgamento profissional, através da análise da existência de diferenças significativas relativamente às decisões em torno da divulgação ou reconhecimento de passivos e ativos, bem como validar (ou não) a classificação atribuída por Gray (1988) a Portugal, no que respeita aos valores contabilísticos do conservadorismo e do sigilo. Nesse sentido, foram analisados os conceitos previstos na Norma Contabilística e de Relato Financeiro (NCRF) 21, intitulada Provisões, Passivos Contingentes e Ativos Contingentes. A partir da distribuição de um questionário aos preparadores da informação, do qual resultou uma amostra de 408 profissionais, foi possível identificar, por meio de técnicas estatísticas bivariadas, diferenças significativas na perceção dos profissionais em torno da divulgação e do reconhecimento de passivos e ativos, verificando-se uma tendência mais fortalecida para a divulgação ou o reconhecimento de passivos. Relativamente aos valores do conservadorismo e do sigilo, e a partir de técnicas estatísticas multivariadas, foi possível constatar um maior grau de conservadorismo como valor contabilístico em Portugal, bem como a existência de uma associação entre os referidos valores. Pretende-se que este estudo desperte a atenção de organismos normalizadores relativamente à importância dos aspetos relacionados com a informação divulgada no relato financeiro, particularmente quando está em causa o julgamento profissional

Fiscal Contingencies due to Changes in the Method of Calculating the PIS and COFINS Levies in Brazil

<p>This paper studies the effects of change in the method of calculating the PIS and COFINS in the disclosure of tax contingencies. The tax contingencies in general, including contingencies related tax contributions, must be evidenced in financial statement notes, in accordance with established accounting criteria for this purpose. In this context, this study analyzes the disclosure level of Brazilian companies reporting in the financial statement notes to the tax contingent assets and liabilities, especially with regard to non-cumulative PIS and COFINS, and what its features. To assess the level of disclosure of contingencies it applied a Probit model in which it tried to identify the determinants of disclosure level. The results suggest that the majority of the firms analyzed, although they have fiscal contingencies related to PIS and COFINS, do not explain the nature of the respective accounting figures in financial statement notes, so they are not being transparent to investors in this respect.</p>