Impact of the Accounting Standards Applied on the Assessment of the Financial Situation of a Company from the Mining Sector

Abstract

The discrepancies between the Polish balance sheet law and the International Financial Reporting Standards (IFRS) with regard to the recognition and presentation of economic events may in some cases have a significant impact on the financial data of the entities applying selected standards. Having regard to the Polish legal system, which imposes the obligation to apply IFRS on listed entities, at the same time excluding this possibility for other entities, it is interesting to attempt to verify the potential comparability of specific companies with a similar profile, operating in the same industry. The aim of the paper is to identify and assess the impact of the accounting standards applied on the key financial ratios and data of an entity operating in the mining industry. The research method used in the paper is financial analysis. The data used for the analyses cover the years 2007–2015.