THE IDENTIFICATION OF ACCRUALS IN THE ACCOUNTING PROFIT SYN-TAX: THE BRAZILIAN PARMALAT CASE

Abstract

This work identifies the main elements and values, which form the accruals, used in the syntax of a company's accountancy revenue, and adjust the accounts by the values of those components discretionary and not discretionary from the accruals. To achieve this an exploratory research was conducted, with a predominantly qualitative approach, through a study of the case of Parmalat Brazil. The data collected consisted of Published Company Results, Explanatory Notes and the Auditors' Reports from the years 1998 to 2002. From the data collected an analysis was carried out. It was observed that the company presented losses in all the years researched. However, after the accounts were adjusted by the accruals, these losses were converted into significant profits. Therefore, this research contributes in understanding the leeway existent in the main accountancy practices, which in some cases can be used as a form of subterfuge for manipulating company results.