The cost of impairment in active banks in the brazilian market

Abstract

This article investigates the impact of impairment or deterioration application, which is the reduction of the recoverable value of assets, in the three largest banks operating in the Brazilian market: Itau, Bradesco and Banco do Brasil. Defined in the technical statement 01 of the Committee of financial statements, this reduction should be applied whenever the carrying amount of an asset exceeds its recoverable value, which in turn is the higher of the equity sell and value in use of that asset. The parameter for selection was the value of liquid assets, presented in the ranking published by the Central Bank of Brazil, for the information of 2014. It is a descriptive research regarding the objectives, documentary and literature regarding procedures and qualitative in the approach to the problem. The study concluded that there were impairment losses in the three banks analyzed, observed both in tangible assets such as buildings and equipment, as well as intangible assets such as software and banking rights. The greatest losses, in percentage terms, were recorded by Banco Itau and Banco do Brasil fell to the lowest and losses evenly distributed throughout the period analyzed.