The Influence of the International Financial Reporting Standard for Small and Medium-sized Entities on the Financial Position and Performance of a Company
| Autoři | |
|---|---|
| Rok publikování | 2011 |
| Druh | Článek ve sborníku |
| Konference | International Conference New Socio-economic Challenges of Development in Europe 2010, Riga, Latvia |
| Fakulta / Pracoviště MU | |
| Citace | |
| www | http://www.ev.lu.lv/conf2010/ |
| Obor | Ekonomie |
| Klíčová slova | Accounting; reporting; financial position; performance; |
| Popis | In 2009 the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) was published; it is expected to bring a considerable progress towards the harmonization of the accounting of SMEs. The aim of the standard is to create financial statements which will provide information about the financial position, performance and cash flow as these are important for users’ economic decisions. Another objective of the standard is the enhancement of the quality of the provided information, its comprehensibility in the international context and the reduction of load for accounting entities which have to report with the use of global standards. Currently, there is no obligation to use the standard; its acceptance depends on the European Commission and then the national legislation of each particular country. Because of the differences between the national GAAP in particular countries and the standard, it is certain that in case of transition to the standard there will be qualitative and quantitative differences arising from the differing approach to the recognition and reporting of assets and liabilities. The qualitative differences are brought about by the standard objectives in which it is assumed that the reporting in compliance with the standard will result in a truer and fairer view; moreover, the information from different countries will be comparable, which is not possible if national regulations are used. The quantitative differences arise as a consequence of the differing valuation of statement of financial position, assets, liabilities, expenditures and revenues, which will then be reflected in the differing values of profit ratio, indebtedness, or liquidity. The aim of the paper is to conduct the analysis of the influence of reporting selected items of the financial statement in compliance with IFRS for SMEs on the financial position and performance of a company. |
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