Impact of the Amendment to the Act on Accounting on the Measurement of Financial Performance

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Impact of the Amendment to the Act on Accounting on the Measurement of Financial Performance

Popis výsledku v původním jazyce

The main aim of the submitted paper is to analyse the impact of the amendment to the Act on Accounting on the selected ratios of financial analysis in the Czech Republic. Users of accounting information analyse presented information about the company for various reasons. One reason may be the fact that they can elaborate financial analysis based on the obtained data and use processed results for decision - making. There was a change in reporting of items "Change in own inventories" and "Capitalization" since the 1" January 2016 in the Czech Republic. These items were recognized as revenues till the end of 2015 and they have been recognized as expenses since 2016. The new method does not influence the total amount of long-term or current assets, liabilities, equity, profit or loss. The total amount of operating expenses and revenues has been influenced only. These changes in Act on Accounting can be insignificant at first sight, but if the company elaborates selected ratios of financial analysis, the results will be different in accordance with the usage of the old and new method. Analysis of the impact of these changes on the financial performance will be elaborated on a sample of companies operating in the automotive industry. Based on the data it will be possible to say whether these changes has a major impact on results of selected ratios or not.

Název v anglickém jazyce

Impact of the Amendment to the Act on Accounting on the Measurement of Financial Performance

Popis výsledku anglicky

The main aim of the submitted paper is to analyse the impact of the amendment to the Act on Accounting on the selected ratios of financial analysis in the Czech Republic. Users of accounting information analyse presented information about the company for various reasons. One reason may be the fact that they can elaborate financial analysis based on the obtained data and use processed results for decision - making. There was a change in reporting of items "Change in own inventories" and "Capitalization" since the 1" January 2016 in the Czech Republic. These items were recognized as revenues till the end of 2015 and they have been recognized as expenses since 2016. The new method does not influence the total amount of long-term or current assets, liabilities, equity, profit or loss. The total amount of operating expenses and revenues has been influenced only. These changes in Act on Accounting can be insignificant at first sight, but if the company elaborates selected ratios of financial analysis, the results will be different in accordance with the usage of the old and new method. Analysis of the impact of these changes on the financial performance will be elaborated on a sample of companies operating in the automotive industry. Based on the data it will be possible to say whether these changes has a major impact on results of selected ratios or not.

Druh

D - Stať ve sborníku

CEP obor

AE - Řízení, správa a administrativa

OECD FORD obor

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Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2016

Kód důvěrnosti údajů

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

Název statě ve sborníku

SGEM 2016, BK 2: POLITICAL SCIENCES, LAW, FINANCE, ECONOMICS AND TOURISM CONFERENCE PROCEEDINGS, VOL III

ISBN

978-619-7105-74-2

ISSN

2367-5659

e-ISSN

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Počet stran výsledku

7

Strana od-do

305-311

Název nakladatele

STEF92 Technology Ltd.

Místo vydání

Sofia, Bulgaria

Místo konání akce

Albena, Bulgaria

Datum konání akce

24. 8. 2016

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

000395727000039