Factors influencing true and fair view when preparing financial statements under IFRS: evidence from the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F20%3A63525260" target="_blank" >RIV/70883521:28120/20:63525260 - isvavai.cz</a>

Result on the web

<a href="http://economic-research.pl/Journals/index.php/eq/article/view/1812" target="_blank" >http://economic-research.pl/Journals/index.php/eq/article/view/1812</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.24136/eq.2020.026" target="_blank" >10.24136/eq.2020.026</a>

Result language

angličtina

Original language name

Factors influencing true and fair view when preparing financial statements under IFRS: evidence from the Czech Republic

Original language description

Accounting records provide a wide range of data necessary for decisions of the management as well as for users of a company’s financial statements. IFRS represents one of the widely accepted accounting principles, often mentioned in relation to the preparation of high-quality financial statements. The aim of this paper is to identify the factors contributing to the occurrence of misstatements when preparing financial statements under IFRS. The subsequent goal is to identify the possible influences of such misstatements on the users of the financial statements. The research itself focuses on perceived problems in IFRS application in the Czech Republic. The total tested population is 193 Czech companies preparing their financial statements under IFRS. Descriptive statistics, the chi-square test of independence along with proportional tests, are used for the statistical data analysis. The results indicate that, while misstatements in accounting do not occur regularly, a statistical dependence can be shown be-tween the frequency of misstatements occurrence and the average size of misstatements. The frequency of the subsequently identified misstatements is also proven to be statistically dependent on the average size of misstatements. The IFRS themselves are not proven to influence misstatement occurrences in financial statements, which is in contrast with previous studies. Managerial pressures, similarly to other studies, are proven by the research to be affecting the quality of accounting information.

Czech name

—

Czech description

—

Type

J_ost - Miscellaneous article in a specialist periodical

CEP classification

—

OECD FORD branch

50205 - Accounting

Project

—

Continuities

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Publication year

2020

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Equilibrium. Quarterly Journal of Economics and Economic Policy

ISSN

1689-765X

e-ISSN

—

Volume of the periodical

15

Issue of the periodical within the volume

3

Country of publishing house

LT - LITHUANIA

Number of pages

17

Pages from-to

"595–611"

UT code for WoS article

000589231500009

EID of the result in the Scopus database

—