Financial statements in the financial decision making

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Year of publication 2016
Type Article in Proceedings
Conference Proceedings of the 13th International scientific conference: European Financial Systems 2016
MU Faculty or unit

Faculty of Economics and Administration

Field Economy
Keywords financial statements; financial decision; models of valuation; recognition; differences; Czech Accounting Legislation (CAL); International Financial Reporting Standards (IFRS);
Description The paper is devoted to the comparison of financial statements according to International accounting standards and Czech accounting legislation and impact assessment of identified differences on the decisions of investors and owners of corporations. The first objective is to identify accounting methods and practices that lead to differences in reporting of financial position and performance of corporations, analyze their causes and examine their impact on the statements. The second objective is to assess the impact of these differences using methods of financial analysis on data specific company. For this purpose is created parallel system of ratio indicators. Calculations of indicators and their development in time make it possible to assess the significance of these differences and the degree of influence on the decisions of users of financial statements. Research has proven that despite the ongoing harmonization efforts, there are still significant differences in both approaches and should be taken into account when making decisions.
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