scholarly journals Relationship between legislation and accounting errors from the point of view of business representatives in the Czech Republic

2019 ◽  
Vol 10 (1) ◽  
pp. 193-210 ◽  
Author(s):  
Marie Paseková ◽  
Eva Kramná ◽  
Bohumila Svitáková ◽  
Miroslava Dolejšová
Keyword(s):  
Czech Republic ◽  
Goodness Of Fit ◽  
Accounting Standards ◽  
Value Added ◽  
Financial Statements ◽  
Point Of View ◽  
Goodness Of Fit Test ◽  
The Czech Republic ◽  
Non Profit ◽  
Accounting Errors

Research background: Previous studies have demonstrated that providing relevant information to users is positively affected by higher quality of accounting standards and adhering to ethical rules and accounting principles by accounting professionals. On the other hand, there are a lot of cases when the law was broken. The most common reason for committing financial statement´s fraud include in-creasing stock prices, getting loans from bank or avoiding payment of taxes. Purpose of the article: The aim of this paper is to evaluate both the relationship between using of legislation and accounting errors rate in the financial statements as well as the possible using of creative accounting from the point of view of enterprises and non-profit organizations in the Czech Republic. Methods: Among the quantitative research methods the questionnaire was used. The questionnaires were sent out to randomly 201 selected enterprises and non-profit organization. The survey was conducted from September 2017 to the end of January 2018. The data were analyzed by means of the tools of descriptive statistics and the chi-square goodness of fit test. The research questions sought to investigate whether Czech Accounting Standards helped in all areas of accounting and reporting and avoiding of errors in financial statements, and whether the respondents encountered fraudulent procedures in compiling financial statements. Findings & Value added: The results indicated that using Czech Accounting Standards was perceived as a useful tool in solving all situations in areas of accounting and avoiding accounting errors. Moreover, it was proved that the volume and frequency of errors were not significant in financial statements.

scholarly journals Financial Statement according to National or International Financial Reporting Standards? A Decision Analysis Case Study from the Czech Republic at Industrial Companies

2020 ◽  
Vol 31 (3) ◽  
pp. 270-281
Author(s):  
Michal Krajňák
Keyword(s):  
Czech Republic ◽  
Financial Reporting ◽  
Accounting Standards ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
The Czech Republic ◽  
National Accounting ◽  
Financial Reporting Standards ◽  
Industrial Companies

Financial statements bring information about financial position, performance and changes in financial performance. These statements could be prepared in accordance with national accounting standards or in accordance with International Financial Reporting Standards. The scientific problem is to assess whether it is more beneficial to prepare financial statements according to national, transnational or both national and transnational accounting standards. Results show that it is more convenient to prepare financial statements only according to the legislation of national accounting standards. The advantage of this option is lower costs. However, the second best option, based on preparing financial statements according to International Financial Reporting standards, leads to higher quality, credibility and comparison of these statements. Options based on the gradual convergence of transnational and national accounting standards also do not represent an ideal situation. The utility of options is influenced by many criteria. The most important criterion according to the questionnaire survey is costs. The questionnaire survey was carried out in the year 2018 among 28 industrial companies in the selected region of the Czech Republic. The methods of description, analysis, synthesis, comparison and selected methods of multi-criteria decision-making are used in the article.

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

Equilibrium ◽  
2020 ◽  
Vol 15 (3) ◽  
pp. 595-611
Author(s):  
David Homola ◽  
Marie Paseková
Keyword(s):  
Czech Republic ◽  
Value Added ◽  
Financial Statements ◽  
Statistical Dependence ◽  
Chi Square ◽  
The Czech Republic ◽  
Factors Influencing ◽  
Wide Range ◽  
Average Size

Research background: 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. Purpose of the article: 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. Methods: 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. Findings & Value added: 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 mis-statements. 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. This paper broadens the literature on the factors influencing the quality of financial statements prepared under IFRS and simultaneously reaches conclusions disproving the frequently noted bene-fits of IFRS implementation.

scholarly journals Corporate responsibility aspects of food banks network in the Czech Republic regarding the need of their economic sustainability

2021 ◽  
Vol 92 ◽  
pp. 06028
Author(s):  
Lukas Polacek ◽  
Jan Vavrina
Keyword(s):  
Czech Republic ◽  
Best Practice ◽  
Financial Analysis ◽  
Value Added ◽  
Financial Statements ◽  
Problem Area ◽  
Food Banks ◽  
Current Form ◽  
Economic Point ◽  
The Czech Republic

Research background: Food banks, in their current form, provide services free of charge, but their activities cannot be conducted without public subsidies. Specifically, these are operational and investment subsidies mainly from the resources of the Ministry of Agriculture of the Czech Republic. Thus, the tendency to change the current servicing scheme, mainly from the economic point of view, becomes a growing interest area for food banks and respective stakeholders. Purpose of the article: Purpose of the article is to identify current best practice of food banks sector and to find common aspects of the financial position of food banks in the Czech Republic, using their financial statements and approaches of technical financial analysis in application on the sample of entities. Methods: Authors use general methods of analysis and synthesis of relevant scientific articles and studies with respect to the fact that the problem area of effective and efficient activities in the CEE countries or even Europe is quite rare. There are employed data from accessible financial statements of currently existing 15 food banks in the Czech Republic. Findings & Value added: This article provides an initial outcome of an ongoing specific research project on sustainable service of food banks in the frame of corporate responsible activities within a globalized food manufacturing and food supply chain industry. Authors fill with partial results of this article a gap in the research of the sustainable food bank activities in the CEE countries.

scholarly journals Construction contract revenue recording comparison

2008 ◽  
Vol 56 (3) ◽  
pp. 241-250
Author(s):  
Hana Bohušová
Keyword(s):  
Czech Republic ◽  
Accounting Standards ◽  
Financial Statements ◽  
Accounting System ◽  
International Accounting Standards ◽  
Publicly Traded ◽  
The Czech Republic ◽  
Publicly Traded Companies ◽  
Construction Contracts

Publicly traded companies prepare their consolidated accounts in conformity with the international accounting standards (IAS/IFRS) in accordance with the Regulation No. 1606/2002. This is obliged for all publicly traded joint-stock companies in the Czech Republic. Other companies prepare financial statements in accordance with national accounting standards. There are Accounting Act No. 563/1991 of Coll. and Regulation No. 500/2002 of Coll., Czech Accounting Standards in the Czech Republic. Both systems are based on different principles so there are many differences. The Czech Accounting System (CAS) is based on the rules while IAS/IFRS are based on principles (Kovanicová, 2005). These differences are mainly caused by the different philosophy. CAS prefers the fiscal policy to the economic substance while IAS/IFRS prefere the economic substance. One of the most significant dif­fe­ren­ces is in the field of revenue recording. There are two standards concerning the revenues recording (IAS 18 − Revenue, IAS 11 – Construction Contracts) in IAS/IFRS. CAS 019 – Expenses and Revenue are dealing with the revenue recording in the Czech Republic. The paper is aimed at the comparison of the methodical approaches for revenue recording used by IAS/IFRS and by CAS. The most important differences are caused by the different approach to the long term contracts (construction contracts, software development contracts) revenues recording.

scholarly journals Green logistics tools applied in selected companies in the Czech Republic: a survey

2021 ◽  
Vol 129 ◽  
pp. 09004
Author(s):  
Jan Chocholáč ◽  
Šárka Vančurová ◽  
Michal Míka
Keyword(s):  
Czech Republic ◽  
Slovak Republic ◽  
Value Added ◽  
Business Practice ◽  
Point Of View ◽  
Computer Assisted ◽  
Green Logistics ◽  
The Czech Republic ◽  
Current Topic ◽  
New Challenges

Research background: The issue of green logistics is a very current topic not only from a scientific point of view but also from the point of view of business practice. The pressure to reduce negative environmental, social and economic impacts presents new challenges and pressures for companies, which will become more important in the coming years. This manuscript deals with green logistics tools applied in selected companies in the Czech Republic. The manuscript strictly focuses on the view of companies on green logistics and its tools, as well as on barriers and drivers for the implementation of green logistics. The aim of the article is to identify the attitude of selected companies in the Czech Republic to green logistics, to analyse barriers and drivers in the implementation of green logistics and to analyse the applied activities of green logistics and the reasons for their application. Purpose of the article: The main aim of the article is to identify the attitude of selected companies in the Czech Republic to green logistics and green logistics tools, to analyse barriers and drivers in the implementation of green logistics and to analyse the applied activities of green logistics and the reasons for their application. Finally, the results of this research are compared and discussed with the results of a study conducted in the Slovak Republic. Methods: To conduct the research, we have used computer-assisted web interviewing with selected Czech companies’ representatives. Findings & Value added: The results show that green logistics is very popular for companies. At the same time, barriers (most often financial) were identified, but also drivers and reasons for the implementation of green logistics tools. Comparing the results with the research conducted in the Slovak Republic, it can be stated that the results of both surveys were very similar, i.e. the location of the company in the Czech Republic or Slovakia does not affect the view of green logistics and its tools.

scholarly journals Analysis of foreign direct investment in the Czech Republic

2011 ◽  
Vol 59 (4) ◽  
pp. 51-62
Author(s):  
Marcela Domesová
Keyword(s):  
Czech Republic ◽  
Value Added ◽  
Balance Of Payments ◽  
Point Of View ◽  
Foreign Direct Investments ◽  
The Czech Republic ◽  
Gross Value Added ◽  
Greenfield Investments ◽  
Technological Intensity

The foreign direct investments are joined with the process of world globalisation. Foreign direct investments are carried out especially by multinational companies. The basic forms of the foreign direct investments are “greenfield” investments and “brownfield“ investments in the form of the privatization. The Czech Republic has shown mass inflow of foreign direct investments since 1998. The aim of the paper is to evaluate the inflow of foreign direct investments in the context of the balance of payments and the evaluation their impact on the outside economic equilibrium and gross value added in the Czech Republic. The subject of the analysis is the identification of the most important factors of foreign direct investments inflow and the classification of foreign direct investments inflow from the point of view of branches and technological intensity of production as well. The aim is fulfilled by analysis of selected indicators of the balance of payments, analysis of gross value added and international comparison of foreign direct investments inflow in countries of Visegrad Group. The results show the part of privatization in foreign capital inflow, increasing import intensity and export efficiency linked with foreign direct investments. The results are subject of research focused on the process of world globalisation and regional development.

scholarly journals The process of economic integration and globalization in the area of financial reporting, focusing on publication of financial statements in the Czech Republic and in selected countries of the European Union

2021 ◽  
Vol 92 ◽  
pp. 02004
Author(s):  
Hana Bartková ◽  
Marcela Palochová ◽  
Marek Pomp
Keyword(s):  
European Union ◽  
Czech Republic ◽  
Financial Reporting ◽  
Practical Knowledge ◽  
Value Added ◽  
Financial Statements ◽  
The European Union ◽  
The Czech Republic ◽  
Transnational Companies ◽  
Business Entities

Research background: One of the most important features of the current development of the world economy is international integration, which is taking on global dimensions. Operations of transnational companies and the development of the global capital market brings the necessity of accounting harmonization. The goal of this is to ease the mutual observation, reporting, use and thus creation of a single, international accounting. Purpose of the article: The purpose of this article is to describe the current state of the process of harmonization during preparing the annual accounts in the Czech Republic and in selected countries of the European Union, with the analysis of impacts of change in the legislative framework to the obligations of entities in the area of preparation and publication of financial statements. Methods: Scientific procedures using theoretical methods were used in the paper, which include description, analysis, synthesis, comparison and evaluation, inclusive of processing and evaluation of data and information obtained from research conducted by business entities in the Czech Republic. Findings & Value added: The article analyses the impacts of the process of harmonization and globalization on the area of financial reporting and on publishing financial statements. Based on the acquired theoretical and practical knowledge, the paper suggests possible solutions to improve the informational obligations of accounting units. The paper also evaluates the achievement of compliance in the area of reporting financial statements from the perspective of the Czech Republic and selected countries of the European Union.

scholarly journals The application of Kohonen networks for identification of leaders in the trade sector in Czechia

Equilibrium ◽  
2019 ◽  
Vol 14 (4) ◽  
pp. 739-761 ◽  
Author(s):  
Jaromír Vrbka ◽  
Elvira Nica ◽  
Ivana Podhorská
Keyword(s):  
Neural Networks ◽  
Cluster Analysis ◽  
Czech Republic ◽  
Value Added ◽  
Financial Statements ◽  
Data Set ◽  
The Czech Republic ◽  
Return On Equity ◽  
Kohonen Networks ◽  
Trade Sector

Research background: The trade sector is considered to be the power of economy, in developing countries in particular. With regard to the Czech Republic, this field of the national economy constitutes the second most significant employer and, at the same time, the second most significant contributor to GNP. Apart from traditional methods of business analyzing and identifying leaders, artificial neural networks are widely used. These networks have become more popular in the field of economy, although their potential has yet to be fully exploited. Purpose of the article: The aim of this article is to analyze the trade sector in the Czech Republic using Kohonen networks and to identify the leaders in this field. Methods: The data set consists of complete financial statements of 11,604 enterprises that engaged in trade activities in the Czech Republic in 2016. The data set is subjected to cluster analysis using Kohonen networks. Individual clusters are subjected to the analysis of absolute indicators and return on equity which, apart from other, shows a special attraction of individual clusters to potential investors. Average and absolute quantities of individual clusters are also analyzed, which means that the most successful clusters of enterprises in the trade sector are indicated. Findings & Value added: The results show that a relatively small group of enter-prises enormously influences the development of the trade sector, including the whole economy. The results of analyzing 319 enterprises showed that it is possible to predict the future development of the trade sector. Nevertheless, it is also evident that the trade sector did not go well in 2016, which means that investments of owners are minimal.

scholarly journals Analysis of the development of the economic account for agriculture of the Czech Republic

2012 ◽  
Vol 52 (No. 5) ◽  
pp. 205-208
Author(s):  
J. Klíma ◽  
M. Palát Sn
Keyword(s):  
Czech Republic ◽  
Statistical Analysis ◽  
Value Added ◽  
Plant Production ◽  
Reference Period ◽  
The Czech Republic ◽  
Agricultural Industry ◽  
Increasing Trend ◽  
Production Output ◽  
Net Value Added

The paper is focused on assessing the development of the economic account for agriculture of the Czech Republic in the selected reference period 1998–2003. There were evaluated effects of the particular types of the economic accounts. Methods of regression and correlation analysis and development trends were used for the mathematical-statistical analysis. The plant production output similarly as the output of agricultural industry show an increasing tendency since the period under investigation reaching a peak about 2001 and in next years decreasing in difference to the gross value added at basic prices and the net value added at basic prices which shows an increasing trend throughout the period. Both animal output and the agricultural services output show a decreasing trend reaching a minimum about 2002. 

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