Recognition vs. Disclosure of Investment Properties: Determinants of the Brazilian Market
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The choice between historical cost and fair value is likely to depend on the specific circumstances of the company. This study aimed to verify whether the probability of recognizing Investment Properties (IP) at fair value depends on the amount invested in these assets, also, whether the effect of this amount is sensitive to the company's level of indebtedness and conservatism. To do this, publicly traded companies listed on B3 with IP on their balance sheets for the years 2010-2017 were analyzed. The analysis was conducted using a Logit regression model. Empirical results demonstrate that a higher amount invested in IP leads to a higher probability of recognition at fair value. However, when it comes to the factor of indebtedness, the findings contradict what is evident in the international literature on the subject. The cost of leverage in Brazil may be an influencing factor in the results, considering that it differs from those countries where these investigations were conducted. Concerning the level of conservatism, it was confirmed that the higher the level, the less the effect of the amount invested in investment properties on the probability of recognizing such assets at fair value.
conservadorismo, custo histórico, escolhas contábeis, propriedade para investimento, valor justoconservatism, historical cost, accounting decisions, investment property, fair valueconservadurismo, costo histórico, decisiones contables, propiedad de inversión, valor razonable
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