Graça Maria do Carmo Azevedo

Fair value: model proposal for the dairy sector

Purpose - – The purpose of this paper is twofold. First, it intends to assess the level of comparability of the fair value-based valuation criteria for biological assets of Portuguese dairy farms after the adoption of the Portuguese Accounting Standardization System. Second, it presents an innovative valuation model to assess the fair value of dairy herds. Design/methodology/approach - – The paper conducts a multiple case study at dairy farms in the central region of Portugal which had adopted the new Accounting Standardization System. Data were captured through interviews to assess how dairy farms were using the new valuation criteria required by this recent accounting frame of reference. A proposal for a model to measure fair value is presented. Findings - – Main findings indicate that market values for dairy production animals are inconsistent, reducing financial information comparability levels. To solve these problems, the authors propose a new model to assess fair value based on the net present value (NPV) of future cash-flows. This is a possible method to measure bovines that are in a breeding stage and it will assure the comparability of financial statements among dairy farms. Research limitations/implications - – The study is confined to one case study and one country, not allowing generalization. Originality/value - – Results indicate the need to harmonize one possible method for measuring cattle that are in a breeding stage. In order to overcome these shortcomings, a model was designed to calculate the fair value of dairy production based on the NPV of future economic benefits.

Global Perspectives on Risk Management and Accounting in the Public Sector

In the context of New Public Management, Public Administration must be alert to the efficient management systems in order to rationalize the financial resources and disseminate transparent, accurate and consistent economic and financial information to further assess the performance of managers and organizations. The technological advances have influenced the way financial information is disseminated, including the use of the Internet, allowing it to be quickly accessed. This work is based on the assumptions of agency, public choice and signaling theories, and aims to assess the level of disclosure of financial information on the websites of local authorities in Portugal and to identify factors that may influence it. Given the results, not all local authorities disseminate all the financial information required by law on the websites. Among the factors tested, the size and political competition are the ones that seem to influence the level of disclosure of financial information on the websites. Local Authorities and the Disclosure of Financial Information via the Internet: The Portuguese Case

Impression management and self-presentation dissimulation in Portuguese chairman's statements

Purpose – Drawn on social psychology theory of impression management (IM), the purpose of this paper is to assess the way Portuguese managers build their narratives in chairman’s statement (CS) to manage stakeholders’ perceptions on corporate image, in a period of time of scarce resources. Design/methodology/approach – The paper’s theoretical framework draws on elements of social psychology theory of IM developed by Leary and Kowalski (1990). Through the use of the two-component model of IM (impression motivation and impression construction) the 45 CSs of Portuguese non-finance companies were content analysed to understand how managers build their voluntary communication strategies. Findings – Results indicate that organisational outcome does not influence the adoption of IM strategies. But public visibility and consumer proximity are crucial factors in explaining them. Larger companies with high consumer proximity present themselves in a favourable way, but consistent with an overall reading of the annua...

Ativos biológicos: efeito da dimensão da empresa na opção normativa

Agricultural activity covers a diverse range of activities with significant influence in the Portuguese economy. Farming is characterized by the biological transformation process, which has a strong impact on the accounting treatment for biological assets. The existence of an active market may be the solution for some situations. However, fair value measurement might not be reliable. The size of the company determines the methodology used, adjusting the standards to its features, thereby causing a different accounting treatment of the tax. The present study aims to investigate the influence of firm size on the adoption of standards and on the interpretation of paradigms associated with accounting issues within agricultural activity. To obtain this approach a questionnaire has been conducted to the financial managers of agricultural firms, followed by a descriptive analysis of results. From the key findings of this research, it can be noticed that the voluntary choice of the normative is associated with company features. Thus, micro-entities tend to adopt the Accounting Standard for Micro-Entities, while small entities are more likely to adopt the Accounting Standard for small entities, but the middle and large companies are obliged to use Accounting Standards NCRF 17. Nevertheless, considering the interpretation of the paradigms associated with accounting issues within agricultural activity, it can be observed that the responses are associated with the experience and opinion of the chartered accountants, meaning that such responses are not influenced by the size of firms.

Evolução do Normativo Contabilístico para Entidades do Setor não Lucrativo na Península Ibérica

The non-profit organizations, in Portugal and Spain, used for many years the accounting standards of the profit entities to prepare and elaborate the financial statements. Nearly since the last decade of the twentieth century, some accounting plans for specific sectors were created, adapting the ones applied to profit entities. The second decade of the current century is marked by the creation and implementation of the accounting standards for the Nonprofit Sector Entities. This paper analyzes the evolution of accounting standards for these entities, over time, in the Iberian Peninsula.

DO THE CERTIFIED ACCOUNTANTS KNOW THE MENSURATION OF BIOLOGICAL ASSETS AT FAIR VALUE? AN ANALYSIS OF THE CENTRAL REGION OF PORTUGAL

Accounting regulation has evolved considerably conc er ing agricultural activity. Fair value relevance, as a basis for accounting measurement, i ns ead of historical cost, led to the emergence of more specific standards in this sector , measuring the fair value of biological assets and agricultural products. The European Unio n has adopted the International Accounting Standards (Regulation 1606/2002 of 19 Ju ly 2002), providing the necessary ground for a new accounting standards system in Por tugal (Sistema de Normalização Contabilística SNC). This new paradigm hosts, par ticularly, fair value measurement, without historical cost suppression. In this paper will be analysed to what level the Certified Accountants in Portugal (Centre Region) are familia r with SNC specially NCFR 17, and if it provides a more accurate and proper view, comparati vely to historical cost. We will also analyze the (in)adequacy of historical cost in agri cultural activity and some specific aspects of NCRF 17. At last, it will be analysed market/fai r value, compared to historical cost, presents greater or lower operationalization/implem entation complexity. From the study performed, done through descriptive analysis of an inquiry, it is concluded that the Certified Accountants (Centre Region) SNC’s knowledge and tra ining is satisfactory but is insufficient to what NCRF 17 is concerned.