ANALYSIS OF COMPLIANCE RECOGNITION, MENSURATION AND DISCLOSING PROVISIONS AND CONTINGENT LIABILITIES REQUIREMENTS IN MINING, STEEL AND METALLURGY ENTERPRISES

Abstract

This study aims to analyze, as set forth in the NBC TG 25 (Brazilian Standards Accounting - General Technical Requirements.) and CPC 25 (Accounting Pronouncements Committee) and other standards, the compliance recognitions, mensuration and disclosing provisions and contingent liabilities requirements in mining, steel and metallurgy enterprises listed on BM&FBovespa level 1 of Corporative Governance. It is a qualitative, descriptive and documentary research. Accounting demonstrations and explanatory notes for the year 2011 of a sample of 5 enterprises were analyzed. The data was collected with a checklist based on regulatory agencies requirements for provisions and contingent liabilities. The findings of this research reveal that the provisions reflect only a fairly small proportion of the total of liabilities that are recognized by the companies, whereas financial liabilities have greater representative. One can observe there inadequate use of the term provision for liabilities resulting from appropriations for competence (accruals) and for reducing assets accounts. As for the criteria of recognition and mensuration this study indicates that the analyzed enterprises are aware of these, however, referring to the disclosure requirements it became apparent that the evaluated companies are still using former accounting practices and do not met all the CPC 25 requirements.