Decrease in the Value Relevance of Accounting Information in Electric Distributors after the Brazilian IFRS adoption

Abstract Purpose: The present study evaluated whether there were reductions in the relevance of the accounting information of Brazilian energy distributors in the post-IFRS period. Design/methodology/approach: The rationale for such a conjecture stems from the fact that after the adoption of international accounting standards, energy distributors were unable to register regulatory assets and liabilities concerning their activities. Besides, the same hypothesis was also evaluated for Canadian electricity incumbents. The inclusion of the Canadian companies in this study was the result of the permission given by the IASB, through IFRS 14, so that adopters of international standards from 2015, could continue to register the regulatory items. Findings: Using a value relevance model it was possible to conclude that there was a reduction in the relevance of the accounting information in the Brazilian case and that this decrease is very potentially related to the write-off of regulatory assets after IFRS. It was also observed that the same effect did not occur in the Canadian companies after the adoption of this normative set. It was also verified that before the IFRS, both the regulatory assets of Brazilian companies and of Canadian firms, were from the statistical perspective also incorporated into the market value of the companies analyzed, denoting similar behavior on the part of investors. Originality/value: That is, although the economies of these jurisdictions are distinct, investors incorporated such accounting assets into stock prices because they could potentially verify realization rates on such items. Thus, it is concluded that the adoption of international standards did not benefit Brazilian energy distributors by distancing the book value from their market value.

摘要
研究目的：本研究旨在评估巴西能源分销企业的会计信息相关性在采用国际财务报告准则（International Financial Reporting Standards，IFRS）后是否出现下降。
研究设计与方法：本猜想的理论依据源于，采用国际会计准则后，能源分销企业无法再针对其经营活动确认监管资产与监管负债。此外，本研究同时针对加拿大电力在位企业验证了同一假说。将加拿大企业纳入本研究的缘由，是国际会计准则理事会（International Accounting Standards Board，IASB）通过《国际财务报告准则第14号》（IFRS 14）所授予的许可，允许2015年起采用国际准则的报告主体继续确认监管类项目。
研究发现：通过价值相关性模型开展分析，本研究可得出如下结论：巴西能源分销企业的会计信息相关性出现下降，且该下降极有可能与IFRS实施后监管资产的核销存在关联。同时观察到，加拿大电力企业采用该准则体系后并未出现相同效应。此外，研究还验证了，在IFRS实施前，巴西与加拿大企业的监管资产均从统计学层面被纳入所分析企业的市场价值，表明两地投资者展现出相似的决策行为。
研究创新性与价值：换言之，尽管两地司法辖区的经济环境存在显著差异，但投资者仍将此类会计资产纳入股票定价，因为他们能够对这类项目的实现率进行合理预估。由此可以得出结论：采用国际准则并未使巴西能源分销企业受益，反而使得账面价值与市场价值之间的差距进一步拉大。