Analysis of Differences in Reporting According to IFRS in SMEs in the Czech Republic and Its Influence on Performance Measurement

Abstract

New information technologies, development of international economic cooperation and market interconnection call for the need of multinational, globally applicable and acknowledged accounting standards which will enable to describe the processes taking place on the companies´ level, within the extent of the contemporary knowledge, but especially in a comparable form.These requirements are met e.g. by International Financial Reporting Standards (IFRS) used mainly in Europe. Their fundamental aim is to develop unified, high-quality and understandable global accounting standards. The financial statements prepared according to these standards provide high-quality, transparent and comparable information, which can help the users to make economic decisions.The information disclosed according to full IFRS standards is sometimes too superfluous for users of financial statements of small and medium-sized enterprises (SMEs) and very often the cost of its full consistence exceeds its contributions. Another problem, which is specific for the Czech Republic is that the national legislation does not allow it to specify the income tax base from the statements prepared according to IFRS standards and thus the companies have to prepare the statements according to Czech legislation in parallel, which represents a tremendous administrative burden.The aim of the article is to analyse problem areas in reporting according to IFRS at SMEs in the Czech Republic and to compare their results with the accounting practice in companies which report according to IFRS. AbstraktNové informační technologie, rozvoj mezinárodní ekonomické spolupráce a propojenost trhu vyvolávají potřebu nadnárodních, celosvětově platných a uznávaných účetních LIBUŠE MÜLLEROVÁ, MARIE PASEKOVÁ, DANA KUBÍČKOVÁ Cílem článku je analýza problémových okruhů při vykazováni dle IFRS u MSP v České republice a porovnání jejich výsledků s účetní praxí v podnicích, které už podle IFRS vykazují. Klíčová slova IFRS, MSP, české účetní standardy (ČÚS), účetní závěrka, měření výkonnosti 1 The original name was IAS (International Accounting Standards). To stress the fact that the case is standardization of financial reporting and not standardization of accounting, the name of the whole IAS set was changed into IFRS. Individual standards (IAS 1 through IAS 41) remain in force but new and updated standards are published under IFRS name.

Tax Avoidance, Tax Incentives and Tax Compliance During the Covid-19 Pandemic: Individual Knowledge Perspectives

“…The current state of the COVID-19 pandemic is very supportive of tax avoidance efforts when cash flow declines and turnover declines. This study is consistent with research by Ialomitianu (2010), Mollerova et al (2010), Daud et al (2010), Loo et al (2010).…”

“…Experience will undoubtedly strengthen attitudes and subjective norms that are owned to behave in compliance with existing tax provisions (Ialomitianu, 2010). Mollerova et al (2010), Supriyati et al (2018), Solichah et al (2019) shows how entrepreneurs' knowledge of accounting and taxes has a significant influence on taxpayer compliance. On the other hand, the examination of student respondents shows that tax avoidance efforts do not mediate the effect of accounting and taxation knowledge on taxpayer compliance.…”

“…Extensive knowledge encourages taxpayers to determine alternative tax decisions to be paid. Intention to fulfill tax obligations will motivate tax avoidance efforts or not (Ialomitianu, 2010;Mollerova et al, 2010;Daud et al, 2010;Loo et al, 2010).…”

Impact of Full IFRS, Accounting Standards for SMES and Company Demographics on Firms’ Return on Asset and Return on Equity using Panel Data Regression

“…After a five-12 months improvement system with rigorous consultation of SMEs worldwide, IFRS for SMEs became published via IASB on July nine, 2009. IASB objectives to define a unified set of exceptional, comprehensible and enforceable accounting requirements, to drop financial burden, to allow clean switch to full IFRS for those SMEs which will determine to transport to IFRS or the ones so that you can collect a duty to make accounting facts public, and to pay attention on enjoyable the dreams of clients of economic statements of SMEs (Mullerova, Pasekova and Kubickova, 2010). Furthermore, IASB believes that IFRS for SMEs will offer superior comparison for users of financial statements, beautify the general self guarantee in monetary statements of SMEs, reduce substantial costs related with preserving requirements on a countrywide foundation, and enable to smooth transition to finish IFRS at developing groups which can be getting ready to cross into public capital markets in reaction to robust global requirements of each developed and rising economies (Mullerova, Pasekova and Kubickova, 2010).…”

The impact of applying international financial reporting standards to SMEs On optimizing the utility of financial reports between Palestinian and Libyan business environmen

“…The results of the Abu Risha study (2011) indicate that "IFRS for SMEs" are important and that their application has a positive impact on the financial information content of these enterprises and on the appropriateness and reliability of the Accounting information in the financial reporting of small and medium industrial establishments in Jordan. While Mullerova et al (2013) believes that special standards should be adopted SMEs to facilitate cooperation with foreign investors and the possibility of comparability with foreign competitors through accounting adjustments and their impact on financial assessment. A study (Melegy, 2014) examined the impact of the shift to IFRS on the quality of accounting information and the value of listed companies on the one hand, and analyzing the implications for investors' decisions in the Saudi business environment on the other.…”