Financial Statement according to National or International Financial Reporting Standards? A Decision Analysis Case Study from the Czech Republic at Industrial Companies

Krajňák, Michal

doi:10.5755/j01.ee.31.3.22715

Cited by 3 publications

(3 citation statements)

References 60 publications

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“…IFRS are a set of standards, which are issued by the International Accounting Standards Board, governing the compilation and presentation of all financial statements [4] The IAS/IFRS are largely focused on the output of an accountingfinancial statement [5]. Financial statements bring information about financial position, performance and changes in financial performance [6]. Selected accounting procedures and comments in the financial statements prepared in accordance with IFRS are always assessed and verified by an auditor.…”

Section: Resultsmentioning

confidence: 99%

Reducing the Impact of the Global COVID-19 Pandemic on Business Entities in the Czech Republic from an Accounting and Tax Perspective

2021

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Research background: The global pandemic declared by WHO on 11 March 2020 has had a widespread impact on the world economy, and the COVID-19 outbreak has severely affected economic life throughout the globalized world. Governments have taken various measures to support their economy and financial stability. The global restrictions on production and services, reduced demand for goods and services and this year’s cash-flow problems will certainly lead to a significant decline in their profits, especially for small and medium-sized companies. The COVID-19 pandemic has undoubtedly affected most business entities in the Czech Republic. Purpose of the article: The purpose of the paper is to describe, analyse and evaluate measures of the government of the Czech Republic, which aimed at reducing the impact of the pandemic on businesses in the Czech Republic. Methods: In the paper, classical types of scientific procedures were applied using theoretical and empirical methods which include description, analysis, synthesis, induction, deduction, comparison and evaluation and so on. Findings & Value added: The paper analyses the impacts of COVID-19 in the context of accounting measures from the perspective of Czech and international accounting regulations. The paper proposes a solution in the area of mandatory reactions of accounting entities to a completely unusual situation caused by the COVID-19 pandemic which should be mandatory and disclosed in the notes to the financial statements. Furthermore, the paper evaluates a set of measures in the field of taxation, wages and insurance premiums intended for business entities and their employees.

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Section: Resultsmentioning

confidence: 99%

Reducing the Impact of the Global COVID-19 Pandemic on Business Entities in the Czech Republic from an Accounting and Tax Perspective

2021

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“…2 of the Act on Accounting provides which accounting entities are obliged to compile further statements, which include an statement of changes in equity and cash flow statement. Financial statements bring information about financial position, performance and changes in financial performance [3].…”

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confidence: 99%

“…The reason is mostly the tradability of the entity and the resulting obligation to provide financial statements to the institution that supervises the public market. However, the IFRS rules themselves do not regulate the method of publishing financial statements [12]. The rules only set out the obligation, if the entity applies them, to prepare financial statements at least annually.…”

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confidence: 99%

The process of economic integration and globalization in the area of financial reporting, focusing on publication of financial statements in the Czech Republic and in selected countries of the European Union

2021

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Research background: One of the most important features of the current development of the world economy is international integration, which is taking on global dimensions. Operations of transnational companies and the development of the global capital market brings the necessity of accounting harmonization. The goal of this is to ease the mutual observation, reporting, use and thus creation of a single, international accounting. Purpose of the article: The purpose of this article is to describe the current state of the process of harmonization during preparing the annual accounts in the Czech Republic and in selected countries of the European Union, with the analysis of impacts of change in the legislative framework to the obligations of entities in the area of preparation and publication of financial statements. Methods: Scientific procedures using theoretical methods were used in the paper, which include description, analysis, synthesis, comparison and evaluation, inclusive of processing and evaluation of data and information obtained from research conducted by business entities in the Czech Republic. Findings & Value added: The article analyses the impacts of the process of harmonization and globalization on the area of financial reporting and on publishing financial statements. Based on the acquired theoretical and practical knowledge, the paper suggests possible solutions to improve the informational obligations of accounting units. The paper also evaluates the achievement of compliance in the area of reporting financial statements from the perspective of the Czech Republic and selected countries of the European Union.

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Accounting According to the Czech Legislation or Ifrs? Czechia Case Study

Krajňák

2024

Journal of Business Economics and Management

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The article deals with the decision-making situation whether it is more advantageous for accounting entities in Czechia to keep accounting according to Czech accounting regulations or to International Financial Reporting Standards. The preparation of financial statements only in accordance with national accounting regulations may often not be sufficient. Different ways of regulating accounting in the world put pressure on accounting harmonization. International Financial Reporting Standards are the world’s primary tools for accounting harmonization. The results of the decision analysis show that it is more advantageous for accounting entities to prepare financial statements only in accordance with national accounting regulations. The main reason for the higher utility of this option is lower costs, which is the most important criterion in the decision-making process. While accounting entities confirm that the preparation of financial statements in accordance with International Financial Reporting Standards provides higher quality and comparability of accounting information, it also provides higher costs. In the article are used methods of analysis, synthesis, comparison and a selected method of multi-criteria decision making.

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Financial Statement according to National or International Financial Reporting Standards? A Decision Analysis Case Study from the Czech Republic at Industrial Companies

Cited by 3 publications

References 60 publications

Reducing the Impact of the Global COVID-19 Pandemic on Business Entities in the Czech Republic from an Accounting and Tax Perspective

Reducing the Impact of the Global COVID-19 Pandemic on Business Entities in the Czech Republic from an Accounting and Tax Perspective

The process of economic integration and globalization in the area of financial reporting, focusing on publication of financial statements in the Czech Republic and in selected countries of the European Union

Accounting According to the Czech Legislation or Ifrs? Czechia Case Study

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