Implementing IFRS: A Case Study of the Czech Republic

Sucher, Pat; Jindřichovská, Irena

doi:10.1080/0963818042000262757

Cited by 66 publications

(44 citation statements)

References 21 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The main impediments are based on the difficulties rising in the application of some IAS/IFRS and the tax-system of countries sampled as well as the lack of guidelines of national bodies in the application of such standards. Sucher and Jindrichovska (2004) confirm the problems of implementing IAS/IFRS in Czech Republic by analysing the key issues that arise by moving to IAS/IFRS reporting. Their research paper underlines that even though the Czech accounting system is moving closer to IAS/IFRS in some areas such as the valuation at fair value, the need of national system to keep separate the tax and financial reporting to ensure that the different objectives of the two reporting systems are met explains why the Czech system differs in certain aspects from IAS/IFRS.…”

Section: Prior Researchmentioning

confidence: 83%

“…Driven by the findings of the studies investigating the effects of IAS/IFRS transition for firms (Jermakowicz, 2004;Street and Larson, 2004;Sucher and Jindrichovska, 2004;Vellam, 2004) and for local and international regulators (Weißenberger et al, 2004;Haller and Eierle, 2004;Shipper, 2005;Whittington, 2005), the purpose of this paper is to provide empirical evidence of the nature and the size of the differences between Italian GAAP and IAS/IFRS, by analysing the total and individual adjustments to IAS/IFRS in the reconciliations of net income and shareholders' equity of Italian listed companies. This is addressed by proposing a new measure of accounting comparability, i.e.…”

Section: Methodsmentioning

confidence: 99%

“…The studies on the adoption of IAS/IFRS by European companies investigate the implications of the introduction of this set of international accounting standards by adopting two main research approaches: a first group of studies focuses on the transition and implementation of IAS/IFRS and in particular it highlights their effects for firms (Jermakowicz, 2004;Street and Larson, 2004;Sucher and Jindrichovska, 2004;Vellam, 2004) and for local and international regulators (Weißenberger et al, 2004;Haller and Eierle, 2004;Shipper, 2005;Whittington, 2005); a second category investigates the financial reporting under IAS/IFRS with reference to the compliance to IAS/IFRS (Emenyonu and Gray, 1996;Dumontier and Raffounier, 1998;El-Gazzar et al, 1999;Murphy, 1999;Street and Bryant, 2000;Ashbaugh, 2001;Glaum and Street 2003;Tarca, 2004;Cuijpers and Buijink, 2005) and the quality of information under IAS/IFRS (Ashbaugh and Pincus, 2001;Hung and Subramanyam, 2004;Barth et al, 2005;Van Tendeloo and Vanstraelen, 2005).…”

Section: Prior Researchmentioning

confidence: 99%

See 2 more Smart Citations

Conceptual Issues and Challenges in IFRS Research : Towards a Comprehensive Research Framework

Kulkarni

Aanand

2017

Indian Journal of Finance

View full text Add to dashboard Cite

Abstract:The European Commission has required the adoption of IAS/IFRS in order to harmonize financial reporting standards for European listed companies as of 1 January 2005. Converting to IAS/IFRS has represented much more than a change in accounting rules, and firms' main concern has been to understand the extent to which accounting differences between national GAAP and IAS/IFRS could affect their reported performance. The purpose of the paper is to address this concern by providing empirical evidence of the nature and the size of the differences between Italian GAAP and IAS/IFRS. The total and individual differences between Italian accounting principles and IAS/IFRS are identified in the reconciliations of net income and shareholders' equity of Italian listed companies in order to show the major impacts of the conversion to IAS/IFRS. The findings indicate a more relevant total impact of such a transition on net income than shareholders' equity. The individual adjustments show a more significant discrepancy between the two set of standards in the accounting treatment of business combination, provisions, financial instruments and intangible assets with reference to both net income and shareholders' equity; while the individual accounting differences in income taxes, and property, plant, and equipment show a significant difference only on shareholders' equity.

show abstract

Section: Prior Researchmentioning

confidence: 83%

Section: Methodsmentioning

confidence: 99%

Section: Prior Researchmentioning

confidence: 99%

See 1 more Smart Citation

Conceptual Issues and Challenges in IFRS Research : Towards a Comprehensive Research Framework

Kulkarni

Aanand

2017

Indian Journal of Finance

View full text Add to dashboard Cite

show abstract

“…Are the differences between local practices and IFRSs more easily to be reduced? Previous studies show that even if some changes towards Substance over Form and a focus on investors have been tempted, the emphasis on compiling proper accounting records and on adhering to tax regulations rather than fairly presenting financial statements has continued in the Czech Republic Sucher and Jindřichovská, 2004), and considerable differences between the Polish regulations and IFRS were identified given the legalistic and rule-based orientation of Polish rules (Vellam, 2004). Also, problems associated with lack of clarity in the fiscal law, a variable level of understanding of IFRSs by the regulators and preparers, the persistence of the communist mentality among accountants who gained their knowledge and skills prior the transition, the accountants' preference for more prescriptive regulation and less choice of accounting treatments, were also documented (Vellam, 2004).…”

Section: Introductionmentioning

confidence: 99%

Comparative Analysis of Czech Accounting with International Regulation from SMEs Perspective

Strouhal¹,

Paseková²,

Müllerová³

2011

EFAJ

View full text Add to dashboard Cite

“…2 It is well documented that IAS 39, the international standard for the recognition and measurement of financial instruments, is the most complex standard in terms of understandability and, consequently, is the one that raises more difficulties in implementation by firms. [3][4][5][6] Furthermore, it has generated a great deal of controversy among several agents of the accounting scene and it is far from being a closed issue. [7][8][9][10][11] This paper describes the key questions of accounting for derivatives raised by IAS 39, particularly regarding electricity futures.…”

Section: Introductionmentioning

confidence: 99%

Accounting for electricity derivatives under IAS 39

Lopes

2007

J Deriv Hedge Funds

View full text Add to dashboard Cite

Practical applicationsElectricity derivative users generally find IAS 39, the international standard for the recognition and measurement of financial instruments, to be a major challenge and have doubts about the impacts of the standard on Income statement amounts, namely in hedging strategies. IAS 39, as a general rule, requires that all derivatives are measured at fair value with movements in fair value recognised immediately through the Income Statement. IAS 39, however, also allows hedge accounting treatment for certain hedging relationships. Hedge accounting mitigates the volatile impact of derivative adoption in the Income Statement, by matching the timing of recognition of gains and losses on both the hedged item and the hedging instruments. Hedge accounting allows firms to override the normal accounting treatment of IAS 39. In order to apply hedge accounting rules, the transactions must meet the strict requirements defined in IAS 39. Yet, when hedges are accomplished with standard exchangetraded futures, compliance with IAS 39 hedge accounting rules is quite simple and straightforward. The use of electricity futures to hedge electricity price risk does not have major impacts in the Income Statement. Hedge accounting rules of IAS 39 mitigate volatility when there are balanced positionsso that only real exposures give rise to income volatility. AbstractThis paper analyses the impact of accounting rules on the accounting for hedges with energy derivatives in the context of the launch of MIBEL Derivatives Market. Specifically, the key questions of accounting for nonfinancial derivatives raised by IAS 39, following the mandatory adoption of IFRS in Europe, are described. Under certain conditions, IAS 39 allows contracts on commodities to be exempted from its rules. Those conditions are, however, quite strict and require a case-by-case analysis. IAS 39 requires all derivatives to be reported at fair value. Nevertheless, it allows for hedge accounting, provided that certain conditions are met, eliminating undesirable income volatility. Futures contracts pay-off profile is generally the inverse of the underlying item, and so futures tend to be easily qualified for hedge accounting rules of IAS 39, due to the way in which hedge effectiveness is measured. The paper shows that as far as energy producers and users are concerned, when hedges are accomplished with exchange-traded futures, compliance with IAS 39 hedge accounting rules is simple and straightforward.

show abstract

Implementing IFRS: A Case Study of the Czech Republic

Cited by 66 publications

References 21 publications

Conceptual Issues and Challenges in IFRS Research : Towards a Comprehensive Research Framework

Conceptual Issues and Challenges in IFRS Research : Towards a Comprehensive Research Framework

Comparative Analysis of Czech Accounting with International Regulation from SMEs Perspective

Accounting for electricity derivatives under IAS 39

Contact Info

Product

Resources

About