This paper aims to identify the explanatory factors of mandatory disclosure (MD) and voluntary disclosure (VD) levels related to discount rates, based on disclosure theories. The size, leverage, profitability, and audit firms were selected from different theories, namely agency theory, signaling theory, positive accounting theory, including the political cost hypothesis, and the cost of capital theory. Furthermore, the materiality (weight of the items) and the relevance (nature) of the topic were also considered, based on the evidence already obtained in the literature. Research on disclosures related to discount rates has been assessed either as an incidental topic or from a limited-scope analysis, particularly with respect to MDs. This paper assesses this topic as its specific object of analysis for both MD and VD. The use of the discount rate has been assuming growing importance within financial reporting. Therefore, this topic should deserve particular attention from international standard-setting bodies. The understanding of the proper set of items to be disclosed and understanding the factors that explain its disclosure, aligned with the efforts to assure its compliance by legal authorities, may contribute to reducing asymmetries and increasing transparency in entities' financial reporting. This study uses the method of archival research and content analysis of consolidated reports and accounts for the year 2020 of listed entities in Euronext Lisboa. Regression models were used, having disclosure indices related to discount rates as dependent variables. This paper finds a positive association between disclosures related to discount rates and the entity’s size, as well as the materiality and the relevance, assessed by the weight of the items and the nature of the topic under assessment, respectively. It adds new explanatory factors on the VDs and MDs related to discount rates in a broader perspective of analysis.
RESUMO Este artigo visa identificar os fatores explicativos dos níveis de divulgação obrigatória (DO) e de divulgação voluntária (DV) relacionados às taxas de desconto, com base em teorias de divulgação. O tamanho, a alavancagem, a rentabilidade e as empresas de auditoria foram selecionados a partir de diferentes teorias, a saber: teoria da agência, teoria da sinalização, teoria positiva da contabilidade - incluindo a hipótese do custo político, e a teoria do custo do capital. Além disso, a materialidade (peso dos itens) e a relevância (natureza) do tópico também foram consideradas, com base nas evidências já obtidas na literatura. As pesquisas sobre as divulgações relacionadas às taxas de desconto foram avaliadas como um tópico incidental ou a partir de uma análise de escopo limitado, particularmente em respeito às Dos. Este trabalho avalia o tópico mencionado como seu objeto específico de análise tanto para DO como para DV. O uso da taxa de desconto vem assumindo uma importância crescente nos relatórios financeiros. Portanto, esse tópico deve merecer atenção especial por parte dos organismos internacionais de normalização. O entendimento do conjunto adequado de itens a serem divulgados e a compreensão dos fatores que explicam sua divulgação, alinhados com os esforços para assegurar seu cumprimento pelas autoridades legais, podem contribuir para reduzir assimetrias e aumentar a transparência nos relatórios financeiros das entidades. Este estudo utiliza o método de pesquisa de arquivo e análise de conteúdo de relatórios e contas consolidadas para o ano de 2020 das entidades listadas na Euronext Lisboa. Foram utilizados modelos de regressão, tendo índices de divulgação relacionados às taxas de desconto como variáveis dependentes. Foi encontrada associação positiva entre as divulgações relacionadas às taxas de desconto e o tamanho da entidade, assim como a materialidade e a relevância, avaliada pelo peso dos itens e a natureza do tópico em avaliação, respectivamente. Este trabalho acrescenta novos fatores explicativos sobre as DVs e Dos relacionados às taxas de desconto em uma perspectiva de análise mais extensa.
The use of the discount rate within financial reporting deserves particular attention from international standard-setting bodies because it has achieved prominence over time. This chapter uses archival research as a method and content analysis as a technique to assess mandatory and voluntary disclosure levels related to discount rates. The consolidated accounts for the year 2020 of listed entities in Euronext Lisbon are the sources of information. The results show differences in mandatory and disclosure levels regarding IAS/IFRS under analysis. Disclosures related to discount rates have been assessed either as an incidental topic or from a limited-scope analysis. Therefore, understanding the proper set of items to be disclosed and the factors that explain its disclosure, aligned with the efforts to ensure its compliance by legal authorities, may reduce asymmetries and enhance transparency in entities' financial reporting.
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