Journal of
Accounting and Taxation

  • Abbreviation: J. Account. Taxation
  • Language: English
  • ISSN: 2141-6664
  • DOI: 10.5897/JAT
  • Start Year: 2009
  • Published Articles: 206

Full Length Research Paper

Canonical relationship between performance indicators based on Brazil, US and IFRS accounting standards of Brazilian and United Kingdom companies

Roberto Carlos Klann
  • Roberto Carlos Klann
  • Universidade Regional de Blumenau, Blumenau, SC, Brazil.
  • Google Scholar
Ilse Maria Beuren
  • Ilse Maria Beuren
  • Universidade Federal do Parana, Curitiba, PR, Brazil.
  • Google Scholar
Nelson Hein
  • Nelson Hein
  • Universidade Regional de Blumenau, Blumenau, SC, Brazil.
  • Google Scholar

  •  Received: 03 September 2014
  •  Accepted: 14 January 2015
  •  Published: 31 January 2015


The aim of the article is to identify canonical correlations among performance indicators calculated from a base of accounting statements prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP), Brazilian accounting standards (BR GAAP) and International Financial Reporting Standards (IFRS). Descriptive research with a quantitative approach was carried out. A research sample of 50 companies was selected, including 17 Brazilian companies listed on the Bovespa’s Board of Corporate Governance and 33 English companies listed on the London Stock Exchange, all of which trade American Depositary Receipts on the New York Stock Exchange. The results demonstrate divergence between companies and indicators in relation to differences calculated in performance indicators as well as statistically significant canonical correlations in both groups researched. The performance indicators of Brazilian and English companies were not affected in any significant way, despite divergences between BR GAAP and US GAAP and between IFRS and US GAAP. However, stands out as the main limitation that no company listed on Bovespa was found in the lists of European stock exchanges, which was necessary in order to verify the differences in these companies’ indicators in the conversion of their accounting statements from BR GAAP to US GAAP and IFRS. This required the adoption of an alternative (i.e., canonical correlations). The main implication of this study is that the impact of IFRS adoption by Brazilian companies may be less than the expected, in terms of improvement of accounting quality and cost of adoption. The article advances research on a comparative study of the financial disclosures made according to Brazilian, American and international accounting standards, supported by an analysis of performance indicators calculated from accounting statements prepared from and based on these standards.


Key words: Performance indicators, accounting statements, BR GAAP, US GAAP, IFRS, canonical correlations.