Explanatory power of financial health assessment in agriculture
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F16%3A43891457" target="_blank" >RIV/60076658:12510/16:43891457 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
Explanatory power of financial health assessment in agriculture
Original language description
Risks and the explanatory power of the financial health assessment through bankruptcy and credibility models are very hot topic. Results of the financial health assessment are affected by values in the financial statements. Creative accounting can lead to distortion of these values. Additionally, the success of models is also not absolute and it may happen that the result of this assessment will affect negatively the decision of investors, owners and other users of this information. Due to globalization, the International Financial Reporting Standards are used as the accounting system. This accounting system has some advantages in the financial health assessment compared with Czech regulations. Differences in accounting of subsidies, the valuation at fair value, or the classification of biological assets in fixed assets reduce the using of creative accounting compared with our system. Thus, financial statements are not affected so much. In this paper, models IN05, Gurčík index, CH-index and 'Řezbová OP model' for the Operational Programme Rural Development are evaluated. The absolute and relative indicators that are most correlated with the actual financial position of the company, are identified. According to a summary the most important seems to be EBIT and cash flow. From the ratios are statistically significant the return on assets and the total debt. According to these results it would be useful to replace the suggestible indicator income by the indicator of cash flow, which is not affected by the accounting methods.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
GA - Agricultural economics
OECD FORD branch
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Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
GLOBALIZATION AND ITS SOCIO-ECONOMIC CONSEQUENCES. 16th International Scientific Conference
ISBN
978-80-8154-191-9
ISSN
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e-ISSN
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Number of pages
8
Pages from-to
1588-1595
Publisher name
ZU - UNIVERSITY OF ZILINA
Place of publication
Žlina
Event location
Rajecke Teplice
Event date
Oct 5, 2016
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
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