The Practice of Recognition and Measurement of Estimated Loss on Loan Losses Before and After Adoption of the International Financial Reporting Standards

The objective of this paper is to investigate through content analysis of the notes to the financial statements for the years 2006 to 2011, and by the application of an econometric model, if there were changes in the criteria for recognition and measurement Estimated Loss on Loan Losses (PECLD) from the implementation of the Technical Statement 38 emitted by Accounting Pronouncements Committee. According to this pronouncement, the expected future losses that have not yet occurred, should no longer be recognized through estimates, i.e., it is necessary that the event has actually occurred in order to be registered the loss. This standard provides for the Brazilian business context a new form of recognition and measurement of PECLD, which became to be based on losses actually incurred, different from the practice previously adopted, which consisted of accounting based on expected losses. The study population are all active companies listed on the BM&FBOVESPA. On another way, the sample is in a non-probabilistic choice, being selected for the study the active companies classified in the sector of commerce Economática ®, totaling 19 companies to be studied. The results obtained show that after the adoption of CPC 38 the criteria for recognition of PECLD was not, in its entirety, based on the method from CPC, ie, losses incurred. Perceives a reduced level of compliance of the accounting practices adopted in relation to the norm. With the convergence process and the adherence of Brazilian companies to international standards, the expectation was that companies use losses incurred as the basis for recognition of PECLD.