Economic Theories of Accounting: The Review of Modern Approaches and their Relevance for Standard-Setting

Procházka, David; Pelák, Jiří

doi:10.18267/j.polek.1081

Cited by 5 publications

(4 citation statements)

References 70 publications

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“…The criteria were also based on results of studies by Razek and Bernstein (1976), Nan and Wen (2014) or Prochazka and Pelak (2016). The sub-criteria for the main criteria were established according to the studies and the results of the first round of the questionnaire survey.…”

Section: Methodsmentioning

confidence: 99%

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

Krajňák

2020

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Financial statements bring information about financial position, performance and changes in financial performance. These statements could be prepared in accordance with national accounting standards or in accordance with International Financial Reporting Standards. The scientific problem is to assess whether it is more beneficial to prepare financial statements according to national, transnational or both national and transnational accounting standards. Results show that it is more convenient to prepare financial statements only according to the legislation of national accounting standards. The advantage of this option is lower costs. However, the second best option, based on preparing financial statements according to International Financial Reporting standards, leads to higher quality, credibility and comparison of these statements. Options based on the gradual convergence of transnational and national accounting standards also do not represent an ideal situation. The utility of options is influenced by many criteria. The most important criterion according to the questionnaire survey is costs. The questionnaire survey was carried out in the year 2018 among 28 industrial companies in the selected region of the Czech Republic. The methods of description, analysis, synthesis, comparison and selected methods of multi-criteria decision-making are used in the article.

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Section: Methodsmentioning

confidence: 99%

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

Krajňák

2020

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“…In the case of a profit distribution, a situation may arise where the resources left in the business are not sufficient in the long run to cover the renewal of necessary fixed assets or purchase of inputs, which may cause that the business will not be able to maintain its main or productive capacity in the short term and will face bankruptcy in the future [38,39]. In identifying potential problems, the financial distress of a business and assessing financial stability, the information provided by the accounts is based, which should contain the correct and comprehensible information necessary for the financial analysis [40,41].…”

Section: Measuring the Financial Performance Of Businessesmentioning

confidence: 99%

The Impact of Equity Information as An Important Factor in Assessing Business Performance

Tasáryová¹,

Pakšiová²

2021

Information

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Assessing the business performance is an important aspect of almost all economic decisions at the microeconomic and macroeconomic level, in the short and long term. Information about the partners' relationship to the business, their interest in the evaluation of investments can be explained by various indicators. It is relevant to understand the dependencies of the business performance and the amount of equity, while negative equity can be considered as critical information of existence. The purpose of quantitative research is to identify the relationship between reported negative equity and the business performance in Slovakia on an exhaustive sample of financial data of businesses with negative equity in the period 2014–2018. The business performance with negative equity is assessed through the Altman Z-score and the IN05 index, by classifying businesses into bankruptcy, prosperity and gray zones. Pearson's correlation analysis between negative equity and Altman Z-score performance confirms the strong direct relationship between negative equity and the bankruptcy zone, the weaker indirect relationship between negative equity and the gray zone, and almost no dependence of negative equity and prosperity zone. In the case of the IN05 index, a low correlation was found between negative equity and all three zones. Although businesses with negative equity are in a bankruptcy zone, they do not have to close automatically, but they have to improve resource management, in particular to increase equity, for example by making a profit and good financial management.

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“…A government usually sets financial indicators (SIMU system) which could be used for financial health evaluation, but only few of them are obligatory (Šebestová et al, 2018). Basis for enterprise financial distress identification and financial stability assessment is information drawn from accounting, which should provide correct and understandable information for the needs of financial analysis (Kubaščíková and Juhászová, 2016;Prochazka and Pelak, 2016). Widespread evaluation tool for financial situation and financial performance assessment is financial analysis through various financial indicators.…”

Section: Financial Situation Assessment and The Prediction Of Enterprmentioning

confidence: 99%

Capital Maintenance Evolution using Outputs from Accounting System

Freitas

Espinosa

Correia

2020

SAEB

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Decision making based on information provided by an enterprise accounting information system, is essential for sustainable development and enterprises growth. Besides widely used prediction models for an assessment of the financial distress, there is also a useful indicator of a capital maintenance evolution, that provides a deeper view to the enterprise growth or decline compared to traditional performance measures. The aim of the contribution is to develop a model for assessment of a capital maintenance evolution using available accounting outputs. Our constructed model and coefficient for a capital maintenance evolution CMEOPNN has been developed using the multi-layer (triple) artificial neural network with a feedforward signal transmission by a backpropagation method and an activation function is a sigmoid function. For construction our model we used 663 Slovak enterprises sample out of 5 most frequented industry sectors with a unified structure of the provided information in the financial statements for 2014-2017.

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Economic Theories of Accounting: The Review of Modern Approaches and their Relevance for Standard-Setting

Cited by 5 publications

References 70 publications

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

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

The Impact of Equity Information as An Important Factor in Assessing Business Performance

Capital Maintenance Evolution using Outputs from Accounting System

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