Divergences between the BR GAAP and US GAAP

Abstract

The objective of this paper is to analyze impacts of the divergences between Brazilian accounting
standards (BR GAAP) and ‘generally accepted accounting principles’ in the United States (US GAAP) in
accounting recognition, measurement and disclosure. Seventeen Brazilian companies listed on the São
Paulo stock exchange (BOVESPA) that negotiated American depositary receipts (ADRs) on the New York
stock exchange (NYSE) were selected, using as a reference financial statements. Results demonstrate
that the principal groups of accounts affected by divergences were long term realizable assets (assets
and equity realizable over a long term), long term exigible liability (long term debts) and operational
profit. The principle divergences observed in explanatory notes were those relative to ‘goodwill’ and
structure of the balance.