Tag Archives: Embraer

Did Embraer Succeed in Adopting the International Financial Reporting Standards (IFRS) in Brazil (Published)

This article investigates the challenges that the Brazilian Aeronautics Company Embraer (Empresa Brasileira de Aeronáutica), faced to adapt its accounting system to the IFRS standards, adopted in Brazil in 2010. International Financial Reporting Standards (IFRS) were created by the International Accounting Standards Board (IASB), and IFRS Foundation in 2001, with the objective of unifying different business accountability standards in European Union (EU). From 1973 to 2001, the International Accounting System (IAS) was issued by the Board of the International Accounting Standards Committee (IASC). On April 1st 2001, the International Accounting Standards Board (IASB) created the International Accounting Standards (IAS), through the adoption of the existing IAS and the Standing Interpretations Committee standards (SICs). The IASB, then gave birth to International Financial Reporting Standards (IFRS), which spread very fast through European Union, and then to the rest of the world. Brazilian Federal Government adopted its standards nine years later, in 2010. Since then, the major Brazilian and multinational companies are facing challenges to harmonize their accountability system to the IFRS standards. This article investigates how Embraer, the first company in the Brazilian aeronautics segment, adapted to the IFRS standards, since its implementation in 2010. We analyzed Embraer’s IFRS demonstratives, in comparison to a European equivalent competitor, Airbus, throughout 2010-2015 periods. Finally, we brought managerial recommendations, as well as future research implications.

Keywords: Accounting Systems, Embraer, Financial Reporting, International, Standards

Will Boeing Succeed With the Embraer Acquisition Operation, Despite The Brazilian Federal Government Golden Share Veto (Published)

This case studied how the Brazilian jet manufacturer Embraer (Empresa Brasileira de Aeronáutica), dealt with the Brazilian Federal Government’s veto, in an ongoing acquisition process driven by the North american jet aircraft manufcturer Boeing Corporation. The global’s second largest company played a move in the global aircraft  chess board against its main competitor.  The european Airbus SE recently acquired the jets operation from the Canadian Bombardier, Embraer’s direct competitor. Nevertheless, the Brazilian Federal Government crossed Boeings’ path, , exercising the right of final word on this transaction, due to golden share veto. The golden share rule, however, is a vestige of the state’s role in the economy, in an era of deregulation and large scale privatizations. We addressed in this single case, the question of Governement interference on strategical transactions due to the golden share veto, as well as its implications to the economy, and finally brought managerial recommendations for practitioners, as well as future research recommendations.

Keywords: Aircraft Manufacturer, Embraer, Golden Share