Accounting Systems in Poland and Croatia - comparative study

Zyznarska-Dworczak, Beata; Sačer, Ivana Mamić

doi:10.2478/zireb-2019-0012

Cited by 5 publications

(1 citation statement)

References 13 publications

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“…Entities from different countries can operate in different regulatory frameworks [4]. Financial statements are often a subject of harmonization since a certain level of comparison is expected in order to fulfill information needs of wide range of users (especially investors on financial markets [5]. Other authors commented on the accounting background of the V4 countries.…”

Section: Introductionmentioning

confidence: 99%

Comparison of Financial Reporting in the Visegrad Four Countries in a Global Environment

Lőrinczová

2021

SHS Web of Conf.

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Research background: The Visegrad Four (V4) countries are the Czech Republic, Slovakia, Hungary and Poland. As members of EU they had to incorporate into their national legal accounting framework the European Directives related to annual accounts, valid at the time, where various choices were possible to adopt. Some principles of the international financial reporting standards IFRS also affected the national accounting frameworks more or less, depending on the country. These various influences may affect the external user´s ability to read the published financial statements and compare them. Purpose of the article: The aim of this paper is to compare the relevant national legal framework of accounting in selected areas and the content of financial statements required in the V4 countries and to point out the influence of the chosen presentation of some financial information on selected indicators of financial analysis. Methods: Methods of description, analysis, comparison and synthesis are used to achieve the set aims of the paper. The financial analysis is demonstrated on an illustrative example of reported financial information which is based on the different national accounting legislation. Findings & Value added: The comparison showed some similarities and differences. The main differences amongst the V4 countries are related to the reporting of leased assets and the variation of own production and work-in-progress. Czech Republic does not report the leased assets in the balance sheet of the user of the asset but in the owner´s while the Slovak republic, Hungary and Poland report the asset in the user´s balance sheet which is in accordance with the international accounting standards IFRS (in case of Poland it depends on the lease contract). The Czech Republic reports the changes in own production and capitalization of own work as part of expenses which is in line with IFRS. The Slovak Republic, Hungary and Poland report these items as part of revenues which is in line with the EU Directive but in contrast with IFRS. Also, the Slovak republic and Poland have definitions of the elements of financial statements in their accounting legislation while the Czech Republic and Hungary do not have these definitions. These differences influence the results of ROA, ROE and cost efficiency when comparing the same situation in these countries as it is evidenced on the illustrative example in the paper.

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Section: Introductionmentioning

confidence: 99%

Comparison of Financial Reporting in the Visegrad Four Countries in a Global Environment

Lőrinczová

2021

SHS Web of Conf.

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International Accounting and Auditing Standards Adoption in the Eastern European Countries of the European Union: Review of Regulations and Literature

Rykaczewski

Thevenot

Vulcheva

2022

Journal of International Accounting Research

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In this paper, we review regulatory changes surrounding the adoption of international accounting and auditing standards in 11 Central and Eastern European countries that are European Union (EU) members. Additionally, we examine the English-language research related to these changes in each jurisdiction. We find many commonalities associated with the countries' Communist past and the process of joining the EU. While many studies are being conducted in four of the countries (Czech Republic, Hungary, Poland, and Slovakia), such research is sparse in the remaining seven jurisdictions, primarily due to data availability. English-language audit research is particularly lacking. Our review outlines future research avenues and emphasizes country characteristics that must be addressed when any of the jurisdictions are a part of an international sample. Moreover, we enable international research readers to assess the generalizability of extant research findings.

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Quo Vadis, earnings management? Analysis of manipulation determinants in Central European environment

Valášková

Adamko

Michalíková

et al. 2021

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Research background: The paper investigates the earnings management phenomenon in the context of Central European countries, attempting to identify the factors and incentives that can influence earnings management behavior on a sample of 8,156 enterprises from Slovakia, the Czech Republic, Hungary, and Poland. Purpose of the article: The main purpose of the manuscript is to prove that there are significant differences in earnings management practices (measured by discretionary accruals) across the countries and to find the firm-specific features that influence the way enterprises manage their earnings. Methods: The modified Jones model was used to calculate the discretionary accruals, which are further analyzed across the countries. The statistically significant differences were confirmed across the countries. Thus, the impact of the economic sector, firm size, firm age, legal form, and ownership structure on earnings management behavior is studied by the Kruskal-Wallis test. The Dunn-Bonferroni post hoc tests then revealed the significant differences across the categories of the investigated earnings management determinants. To find the association between the particular earnings management practice (income-increasing or income-decreasing manipulation), correspondence analysis was used to visualize the mutual relations. Findings & value added: The results of the realized investigation revealed that the economic sector is one of the most important earnings management determinants, as its statistical significance was confirmed in each analyzed country. The correspondence analysis determined specific sectors, where income-increasing manipulation with earnings is practiced (NACE codes F, J, K, M, N), and vice versa, income-decreasing earnings management is characteristic for enterprises in sectors A, C, D, G or L. In specific economic conditions, firm size is also a relevant indicator (Hungary), or firm age and legal form and ownership structure (Poland). The recognition of crucial earnings management incentives may be helpful for authorities, policymakers, analysts and auditors when identifying various techniques and practices of earnings manipulation which could vary across the sectors and taking necessary measures to mitigate potential financial risks.

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Accounting Systems in Poland and Croatia - comparative study

Cited by 5 publications

References 13 publications

Comparison of Financial Reporting in the Visegrad Four Countries in a Global Environment

Comparison of Financial Reporting in the Visegrad Four Countries in a Global Environment

International Accounting and Auditing Standards Adoption in the Eastern European Countries of the European Union: Review of Regulations and Literature

Quo Vadis, earnings management? Analysis of manipulation determinants in Central European environment

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