What is OCPC

Accounting communication has attracted substantial attention in the last decade since several regulators issued guidelines that aim to increase financial reporting quality. In this chapter, the authors aim to study the association between the issuance of the technical guidance 07 (OCPC 07) by the Brazilian Accounting Standard Committee (CPC) and the readability of notes to the financial statements of Brazilian public firms. The authors use a multiple linear regression of panel data, controlling by industry and year fixed effect. The results suggest that there is no significant change in the average readability of financial notes after the issuance of OCPC 07. The authors contribute with additional disclosure to accounting literature by collecting empirical evidence on the relationship between the publication of normative guidance and accounting evidence. Moreover, these results may contribute to regulatory decisions made by regulatory agencies, which are certainly among the main stakeholders in the impacts caused by the issuance of norms and guiding the preparation and disclosure of economic-financial information.