Comparability of financial statements in the area of intangible assets in different financial reporting systems

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F21%3A43921040" target="_blank" >RIV/62156489:43110/21:43921040 - isvavai.cz</a>

Výsledek na webu

<a href="http://dx.doi.org/10.15611/2021.935.1" target="_blank" >http://dx.doi.org/10.15611/2021.935.1</a>

DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Comparability of financial statements in the area of intangible assets in different financial reporting systems

Popis výsledku v původním jazyce

Intangible assets represent a significant part of fixed assets in many accounting entities. However, the values of recognized assets on balance sheets show that the numbers are very far from reality in many national adjustments, and that the financial statements in this area are not comparable, even between entities reporting in accordance with international accounting standards. There are significant differences between national accounting regulations in terms of the conditions under which intangible assets can be recognized on the balance sheet and how they should be measured and amortized. According to findings from numerous researchers, the level of unrecognized intangible assets and the potential distortion of information in financial statements varies depending on the financial reporting system used. Many of the intangible fixed assets that bring economic benefits to a company are not recognized in the financial statements at all - often due to conservative accounting approaches and the application of the prudence principle in national accounting rules. According to some sources, the ratio of recognized intangible assets to total assets represents less than 2% on average, although the actual value of intangible assets used is significantly higher. There are analyzed in the chapter impacts of different approaches to the recognition and subsequent measurement of intangible assets in selected national regulations, especially inthe V4 countries (namely in the Czech Republic, Slovakia and Poland) and they are compared with harmonized reporting systems IAS / IFRS and US GAAP. The impacts of different approaches to financial position and performance are specified on a number of items. The contribution shows in which areas of intangible assets the financial statements are very difficult to compare. Special attention is paid to emission allowances as a specific regulatory tool reported under intangible assets,. Reporting approaches are not harmonized at all within the mentioned systems. The advantages and disadvantages of the procedures used in practice are presented.

Název v anglickém jazyce

Comparability of financial statements in the area of intangible assets in different financial reporting systems

Popis výsledku anglicky

Intangible assets represent a significant part of fixed assets in many accounting entities. However, the values of recognized assets on balance sheets show that the numbers are very far from reality in many national adjustments, and that the financial statements in this area are not comparable, even between entities reporting in accordance with international accounting standards. There are significant differences between national accounting regulations in terms of the conditions under which intangible assets can be recognized on the balance sheet and how they should be measured and amortized. According to findings from numerous researchers, the level of unrecognized intangible assets and the potential distortion of information in financial statements varies depending on the financial reporting system used. Many of the intangible fixed assets that bring economic benefits to a company are not recognized in the financial statements at all - often due to conservative accounting approaches and the application of the prudence principle in national accounting rules. According to some sources, the ratio of recognized intangible assets to total assets represents less than 2% on average, although the actual value of intangible assets used is significantly higher. There are analyzed in the chapter impacts of different approaches to the recognition and subsequent measurement of intangible assets in selected national regulations, especially inthe V4 countries (namely in the Czech Republic, Slovakia and Poland) and they are compared with harmonized reporting systems IAS / IFRS and US GAAP. The impacts of different approaches to financial position and performance are specified on a number of items. The contribution shows in which areas of intangible assets the financial statements are very difficult to compare. Special attention is paid to emission allowances as a specific regulatory tool reported under intangible assets,. Reporting approaches are not harmonized at all within the mentioned systems. The advantages and disadvantages of the procedures used in practice are presented.

Druh

C - Kapitola v odborné knize

CEP obor

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OECD FORD obor

50205 - Accounting

Projekt

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Návaznosti

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Rok uplatnění

2021

Kód důvěrnosti údajů

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

Název knihy nebo sborníku

Tax Avoidance, Accounting and Financial Reporting: The Perspective of the Visegrad Group Countries and Serbia

ISBN

978-83-7695-930-6

Počet stran výsledku

22

Strana od-do

41-62

Počet stran knihy

93

Název nakladatele

Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu

Místo vydání

Vratislav

Kód UT WoS kapitoly

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