A STUDY OF LISTED COMPANIES ON THE BM&FBOVESPA SECTOR CONSTRUCTION ON THE RECOGNITION OF INCOME AND EXPENSES BASED ON CPC 17

Abstract

The main objective of this paper is to verify whether the companies in the construction industry not only recognize its revenues but also their costs based on IAS17: Construction Contracts. To achieve the objectives of the research, it was carried out a content analysis in notes between 2009 and 2010 of 22 companies in the construction sector listed on the BM&FBovespa in order to investigate whether they are meeting the requirements of CPC 17regardingthe recognition of revenues and Costs. There search is classified as descriptive and bibliographical. Findings were foundin100% of companies that did not have the type of cost plus, however, 68% use the percentage of completion method (POC), according to this method, contract revenue should be proportionate to the contract costs incurred at each stage measurement, 41% of companies reported values of labor costs at the site of the contract, including its supervision and the costs of materials used in construction. Thus, it is concluded that 59% attended two of the sub items analyzed regarding the recognition of costs, however, more than 50% met there quirements of OCPC01 which deals with the formation of the cost of property, the object real estate development. Finally, regarding Disclosure of Informations hawed that none of the companies disclose their revenues and costs based on the sub items of CPC 17, thus, the results of companies may prove different from what really should be for the purpose of taxation.