Scholarly record
INTERNATIONA FINANCIAL REPORTING STANDARD VERSUS CZECH ACCOUNTING STANDARDS IN FINANCIAL RATIOS OF CZECH COMPANIES
Abstract
As a result of globalization, the transfer of ownership to the hands of foreign firms, as a result of acquisitions and mergers, the accounting entity switches to other accounting systems. In the US, the Generally Accepted Accounting Principles accounting standard is used, the International Financial Reporting Standards accounting system is increasingly being promoted in Europe, and the Czech Accounting Standards are the most widely used in the Czech Republic. However, some Czech companies also keep IFRS accounting not only for the purpose of business comparability with other SBUs operating in Europe, but also because it is a necessary condition for entering a company on the stock exchange. Also, the Prague Stock Exchange (BCPP) requires companies with traded securities to disclose their financial statements in the form of financial statements prepared in accordance with IFRS. The aim of this paper is to compare selected indicators of financial analysis and to verify the hypothesis that the chosen accounting system influences the economic performance of the enterprise expressed through financial ratios. For owners, investors and management are the key financial indicators the profitability ratios. The statistical significance of the research has shown that the financial ratios of return on assets and return on capital employed differ according to used accounting standards. On the other hand, return on equity ratios also showed different values, but this difference was statistically confirmed with lower significance level.
Publication Impact Profile
Publication details
References15
Abad, D., Cutillas-Gomariz, M., Sanchez-Ballesta, J. and Yague, J., Does IFRS Mandatory Adoption Affect Information Asymmetry in the Stock Market? Australian Accounting Review, vol. 28(1), pp 61-78, 2018.
Ahmed, K., Chalmers, K., Khlif, H., A Meta-analysis of IFRS adoption effects, International Journal of Accounting, vol. 48(2), pp 173-217, 2013.
Ankarath, N., Ghosh, T.P., Mehta K.J., Alkafaji, Y. A., Understanding IFRS Fundementals, USA, 2010.
Beuselinck, Ch. et al., Which Analysts Benefited Most from Mandatory IFRS Adoption in Europe? International Accounting Research, vol. 16(3), pp 171-190, 2017.
Cordazzo, M., The impact of IFRS on net income and equity: evidence from Italian listed companies, Journal of Applied Accounting Research, vol.14(1), pp 54-73, 2013.
Dvořáková, D., Finanční účetnictví a výkaznictví podle mezinárodních standardů IFRS, Czech Republic, 2009.
Edirin, J., Okoro, E. G., Evaluating the effect of IFRS adoption on the financial position of commercial banks in Nigeria, Scientific papers of the University of Pardubice, Series D, vol. 36, pp 130-140, 2016.
Erhan, L., Socoliuc, M., Mihaila, S., Grosu, V., Policies and Practices for Implementation of IFRS and NAS in the Republic of Moldova, USV Annals of Economics and Public Administration, vol. 15(3), pp 147-162, 2015.
Hinke, J., IAS/IFRS a hodnocení výkonnosti podniku, Czech Republic, 2013.
Hinke, J., IAS/IFRS a vykázání finanční pozice podniku. Czech Republic, 2013.
Hinke, J., Účetní systém IAS/IFRS. Czech Republic, 2007.
Jílek, J., Svobodová, J., Účetnictví podle mezinárodních standardů účetního výkaznictví 2013. Czech Republic, 2013.
Krupová, L., IFRS Mezinárodní standardy účetního výkaznictví. Czech Republic, 2009.
Onali, E., Ginesti, G., Ballestra, L. V., Investor reaction to IFRS for financial instruments in Europe: The role of firm-specific factors, Finance Research Letters, vol. 21, pp 72-77, 2017.
Paseková, M. at al., Implementace IFRS do malých a středních podniků. Czech Republic, 2012.
View or Download full articleAccess options
SWS access login
Login as SWS Scientific CommitteeLogin as SWS Scientific PartnerLogin as SWS AuthorAuthors and approved SWS contributors will read and export their own linked papers after identity matching by SWS profile, email and SGEM GlobalID.
For librarian assistance: [email protected]
Purchase Instant Access
- Article can be downloaded after successful payment.
- Article may be used according to SWS library access terms.
- Article cannot be redistributed.
