Valuation of intangible assets according to Czech accounting standards and IFRS in the context of explanatory power of financial statements

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F04274644%3A_____%2F18%3A%230000413" target="_blank" >RIV/04274644:_____/18:#0000413 - isvavai.cz</a>

Výsledek na webu

<a href="http://mmi.fem.sumdu.edu.ua/sites/default/files/MMI_A39-03-2018_Dlaskova.pdf" target="_blank" >http://mmi.fem.sumdu.edu.ua/sites/default/files/MMI_A39-03-2018_Dlaskova.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.21272/mmi.2018.3-05" target="_blank" >10.21272/mmi.2018.3-05</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Valuation of intangible assets according to Czech accounting standards and IFRS in the context of explanatory power of financial statements

Popis výsledku v původním jazyce

The globalization of the economy and the levelling of the boundaries in entrepreneurial activity necessitates the international comparability of corporate financial reports in order to make effective management decisions by banks, business partners, rating agencies and other. The article addresses possible changes in company's creditworthiness, represented by the change in the achieved values of the Z-score bankruptcy model as a result of data application from the IFRS financial statements as compared to the data from the reports compiled according to the Czech Accounting Standards. The intention has been to highlight the possible deterioration in its creditworthiness. This article aims at mapping out the differences between the two modifications in the area of acquisition and valuation of fixed assets in the selected segment of construction companies and demonstration of their impact on the explanatory power of financial statements prepared in accordance with the Czech Accounting Standards and IFRS. The article also identifies the risks that this situation brings to users of accounting statements. When using the data of 20 financial statements of entities with main activity in the construction sector lower values were achieved for the Z-score indicators compiled from the IFRS statements as compared to the values determined with the use of data from financial statements prepared according to the Czech Accounting Standards. The main reasons for this impact are the differences in the procedures for discounting of assets values to present value and accounting for the lease which may lead to significant differences in the financial performance of the company, levels of its financial stability and market value. It is proved that these differences can have a certain risk for the portfolio of companies credited by one bank.

Název v anglickém jazyce

Valuation of intangible assets according to Czech accounting standards and IFRS in the context of explanatory power of financial statements

Popis výsledku anglicky

The globalization of the economy and the levelling of the boundaries in entrepreneurial activity necessitates the international comparability of corporate financial reports in order to make effective management decisions by banks, business partners, rating agencies and other. The article addresses possible changes in company's creditworthiness, represented by the change in the achieved values of the Z-score bankruptcy model as a result of data application from the IFRS financial statements as compared to the data from the reports compiled according to the Czech Accounting Standards. The intention has been to highlight the possible deterioration in its creditworthiness. This article aims at mapping out the differences between the two modifications in the area of acquisition and valuation of fixed assets in the selected segment of construction companies and demonstration of their impact on the explanatory power of financial statements prepared in accordance with the Czech Accounting Standards and IFRS. The article also identifies the risks that this situation brings to users of accounting statements. When using the data of 20 financial statements of entities with main activity in the construction sector lower values were achieved for the Z-score indicators compiled from the IFRS statements as compared to the values determined with the use of data from financial statements prepared according to the Czech Accounting Standards. The main reasons for this impact are the differences in the procedures for discounting of assets values to present value and accounting for the lease which may lead to significant differences in the financial performance of the company, levels of its financial stability and market value. It is proved that these differences can have a certain risk for the portfolio of companies credited by one bank.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

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OECD FORD obor

50205 - Accounting

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2018

Kód důvěrnosti údajů

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

Název periodika

Marketing and Management of Innovations

ISSN

2218-4511

e-ISSN

2227-6718

Svazek periodika

3

Číslo periodika v rámci svazku

3

Stát vydavatele periodika

UA - Ukrajina

Počet stran výsledku

9

Strana od-do

59-67

Kód UT WoS článku

000446112400005

EID výsledku v databázi Scopus

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