The Brazilian equity market duly took notice of accounting changes imposed by the SEC on Telefonica Internacional SA (TISA), which has had to revise down its 2001 earnings. Prices of stock in Telefonica?s subsidiaries and affiliates fell on the local market this week. Telefonica?s BDR lost 4.04%. The SEC ordered TISA to write down goodwill (brands and other intangible assets) because they had been booked at market value on the date of acquisition rather than at the end of the reporting period. As a result, TISA posted a loss of 7.11 billion US dollars in 2001 instead of a 2.09bn USD profit. Even so equity analysts say Telefonica is still the safest investment in the Brazilian market at this time.