ADOPTION OF IFRS IN BRAZIL: A STUDY OF THE RELEVANCE OF ACCOUNTING INFORMATION ON INTANGIBLE ASSETS

The change in companies' profile in recent years turn intangible assets as or more important than the tangible assets. The adoption of International Financial Reporting Standards (IFRS) in Brazil, in turn, introduced a different treatment and detail on the recognition and measurement of intangible assets. Thus, this study assessed the relevance of financial reporting on intangible assets in the Brazilian context in 2009 and 2010, the period of transition from the Brazilian Accounting Standards (GAAP) to IFRS. To this end, we used the specification model developed by Chalmers, Clinch and Godfrey (2008), which combines stock prices with the value of the identifiable intangible assets and goodwill. It was found that the accounting numbers for intangible assets and goodwill, both recognized in accordance with IFRS, reflect higher value relevance of information for investors when compared to those assets disclosed in BRGAAP.