The social effectiveness of small and medium-sized entities standard from the view point of Game Theory

Abstract

Accounting has been undergoing significant changes, and among these changes is the creation of a standard for the accounting of small and medium enterprises, in line with international accounting standards for companies of this size. This rule arose from the development of a pronouncement by the Accounting Pronouncements Committee – CPC, which subsequently was approved by the Federal Accounting Council - CFC through specific resolutions. The present study aimed to analyze trends of accounting professionals and business managers concerning the adoption of Technical Pronouncement emitted by Accounting Pronouncements Committee for Small and Medium Enterprises. Considering the level of complexity of the operations performed by companies of this size, the lack of oversight by specific entities and the question of enforcement of these pronouncements, it was used the game theory to determine possible strategies adopted by the accountants and business managers regarding to the effective adoption of pronouncement for SMEs. The study was characterized as a descriptive research, using bibliographical and field research. With the use of surveys sought to identify the perceptions of accounting professionals regarding the adoption of the pronouncement. It was found that this statement constitutes a valid legal standard, endowed with legal effectiveness and technical efficiency, but lacking social effectiveness, due to the low level of efforts for its adoption, both by accounting professionals and by firms.