Disclosure of financial instruments: Practices and challenges of Latin American firms from the mining industry

Malaquias, Rodrigo Fernandes; Zambra, Pablo

doi:10.1016/j.ribaf.2017.07.144

Cited by 8 publications

(9 citation statements)

References 33 publications

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“…By considering the agency costs involved in hiring higher standards, the results can support evaluations of the implementation costs of training of the concepts. In addition, improvements in the rules regarding financial instruments related to disclosure and other requirements of IFRS 9 (Novotny-Farkas, 2016) may be better implemented in companies, by considering the perception of complexity on the part of accountants, thus having implications in the results laid out in previous studies of these countries (Malaquias & Zambra, 2017).…”

Section: Discussionmentioning

confidence: 99%

“…The mineral extraction sector is highly representative in the countries analyzed in this study (Cochilco 2016;Malaquias & Zambra, 2017). The arguments related to the search for a reduction in information asymmetry and also to the use of derivative financial instruments in this sector lead to the understanding that the professionals that have experience in it are more familiarized with the so-called complex financial instruments.…”

Section: Perception Of Complexity and Specific Industrial Sectorsmentioning

confidence: 99%

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Complexity in financial disclosure: the role of the characteristics of hiring firms

Zambra

Malaquias

Rech

et al. 2019

Rev. contab. finanç.

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The main purpose of this research is to analyze the relationship between characteristics of hiring firms and the perception of auditors/accountants that provide services to them regarding complexity in the elaboration/disclosure of sensitivity analyses and risk management. We seek to analyze whether characteristics of firms that have a better level of disclosure could also be associated with the complexity perceived by the professionals that provide services to such firms concerning the information to do with sensitivity analyses and risk management. Information about risk management arouses considerable debate in the area of accounting and finance; nevertheless, how it is addressed, from the point of view of the professionals, still deserves more attention. The results of this study may lead to an improvement, or even a revision, of the standards related with sensitivity analyses and risk management involving financial instruments. The study sample was composed of respondents from South America, namely accountants and auditors from Brazil and Chile. The perception of complexity was evaluated through a structured questionnaire, which was applied using electronic forms. Regarding the explanatory variables, the quantitative model considers the following characteristics of hiring firms: auditor type; firm size; industry; listed firms; transparency; exporting firms. The main advancement provided by this research lies in it revealing that some characteristics of companies usually associated with better levels of disclosure are not necessarily reflected in the perception by accountants/auditors of lower levels of complexity in the elaboration/disclosure of sensitivity analyses and risk management.

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Section: Discussionmentioning

confidence: 99%

Section: Perception Of Complexity and Specific Industrial Sectorsmentioning

confidence: 99%

Complexity in financial disclosure: the role of the characteristics of hiring firms

Zambra

Malaquias

Rech

et al. 2019

Rev. contab. finanç.

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“…In-depth analysis reveals that the discrepancy is mostly about proprietary information and information that reveals managerial judgment and expectations. Malaquias and Zambra (2017) analyzed the level of disclosure of information on financial instruments made available by mining companies located in the Latin America region. The sample consists of 72 companies from Brazil, Chile, Peru, and Mexico.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Disclosure of financial information is defined as the deliberate disclosure of financial information that may be quantitative or qualitative, required, or voluntary, through formal or informal channels (Gibbins et al, 1990). Companies disclose information to meet the needs of various user groups, such as investors, creditors, analysts, and other stakeholders, to increase individuals' decision-making capacity (Cooke, 1989;Malaquias and Zambra, 2017). This information is useful when it meets basic characteristics such as usefulness, faithful representation, comparability, neutrality, topicality, timelessness, verifiability, and intelligibility (Belkaoui, 2002;Mainej and Wahlen, 2006;Nichita, 2018).…”

Section: Introductionmentioning

confidence: 99%

Disclosure Practices of Information in the Field of Financial Instruments: Evidence from Polish Companies Listed in the Warsaw Stock Exchange

Judkowiak¹

2021

ERSJ

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Purpose: The aim of the work is to investigate the practices of disclosing information about financial instruments in the financial statements due to the fulfillment of disclosure obligations and voluntary presentation of information under the accounting policy of financial instruments of companies listed in the Warsaw Stock Exchange. Design/Methodology/Approach: The research aimed at achieving the assumed goal was conducted based on annual, separate financial statements of listed companies for 2016 and 2017. The selection of entities for the audit covered 66 companies and was deliberate selection. In the study, the content of financial statements was analyzed. Findings: The analysis shows that the requirements for disclosing information about financial instruments in accordance with the accounting principles are very liberal. The scope of disclosures about financial instruments among Polish companies is varied and their transparency is low. Overall results show that companies are complying with their accounting policy disclosures, although there are a few requirements that companies ignore. The main problem with information transparency about financial instruments is that companies comply with their disclosure obligations by copying the guidelines and not by presenting important principles to the usefulness of the information. Practical Implications: The information obtained will constitute the basis for multifaceted research on accounting for financial instruments, especially in the field of identifying mandatory and voluntary disclosures of information about the accounting policy of financial instruments, as well as comparing and assessing the application of specific accounting principles of financial instruments from individual periods of application of the guidelines. Originality/Value: The study joins the current literature dealing with disclosure practices about financial instruments that are still missing. The study enriches the existing knowledge in the field of financial instruments and IFRS by identifying attributes that increase the level of information related to financial instruments provided by non-financial enterprises.

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“…Profitability is another of the variables reported in Hassan [16], Malachi & Zambra [18] and Lemos, Rodrigues and Ariza [9] as a determining factor in information disclosure level. To measure profitability, Lemos, Rodrigues and Ariza [9], they used the Return on Equity Ratio (ROE) and the Return on Assets ratio (ROA).…”

Section: Determinants Of Disclosure Level (Independent Variables) and Hypotheses Definitionmentioning

confidence: 99%

Financial Instruments’ Disclosure in Compliance with IFRS 7: The Portuguese Companies

Leote¹,

Pereira²,

Brites³

et al. 2020

IJAFRM

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The constant changes in the business context and international relations have led companies to be provided with financial reporting with useful information, including their relevance, comparability and harmonization as required by International Financial Reporting Standards (IFRS). This study analyzes the level of disclosure of derivative financial instruments from companies in the PSI20 stock index, in the Euronext Lisbon stock exchange, according to requirements of IRFS 7. A disclosure index was created, based on the reports and accounts of companies in the period 2015-2017. To analyze the evolution of the disclosure level according to companies' characteristics (dimension, profitability, share price and auditor type), we applied a cluster analysis. The results show a high level of disclosure. This evidence may be related to the mandatory adoption of IAS / IFRS and may also reflect companies' greater concern in disclosing this type of information due to the negative impact that the global financial crisis has had on corporate performance in general. The dimension is the variable that affects disclosure. That is, there is a tendency to, the higher the company the higher the level of disclosure. However, the results show that smaller companies also have high levels of disclosure. This may be associated with greater or lesser quantity or value of derivative financial instruments used.

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Disclosure of financial instruments: Practices and challenges of Latin American firms from the mining industry

Cited by 8 publications

References 33 publications

Complexity in financial disclosure: the role of the characteristics of hiring firms

Complexity in financial disclosure: the role of the characteristics of hiring firms

Disclosure Practices of Information in the Field of Financial Instruments: Evidence from Polish Companies Listed in the Warsaw Stock Exchange

Financial Instruments’ Disclosure in Compliance with IFRS 7: The Portuguese Companies

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