Explanatory power of financial health assessment in agriculture

Kód výsledku v 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>

Výsledek na webu

—

DOI - Digital Object Identifier

—

Jazyk výsledku

angličtina

Název v původním jazyce

Explanatory power of financial health assessment in agriculture

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

Explanatory power of financial health assessment in agriculture

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

GA - Zemědělská ekonomie

OECD FORD obor

—

Projekt

—

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

GLOBALIZATION AND ITS SOCIO-ECONOMIC CONSEQUENCES. 16th International Scientific Conference

ISBN

978-80-8154-191-9

ISSN

—

e-ISSN

—

Počet stran výsledku

8

Strana od-do

1588-1595

Název nakladatele

ZU - UNIVERSITY OF ZILINA

Místo vydání

Žlina

Místo konání akce

Rajecke Teplice

Datum konání akce

5. 10. 2016

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

—