Radoslav Tusan – Department of Finance, Faculty of Economics, Technical University of Košice, Nemcovej 32, 042 00 Košice, Slovak Republic
6th International Scientific-Business Conference – LIMEN 2020 – Leadership, Innovation, Management and Economics: Integrated Politics of Research – SELECTED PAPERS, Online/virtual, November 26, 2020, published by the Association of Economists and Managers of the Balkans, Belgrade; Printed by: SKRIPTA International, Belgrade, ISBN 978-86-80194-40-0, ISSN 2683-6149, DOI: https://doi.org/10.31410/LIMEN.S.P.2020
This paper deals with the evaluation of the impact of the adoption of International Financial Reporting Standards (IFRS) on the financial situation and performance of the company. The Slovak Accounting Act allows accounting and reporting under IFRS for two types of entities – explicitly specified by law (e.g. banks, insurance companies, stock exchange); and those that meet specified size criteria. The analyzed company met the size criteria and IFRS has been applying since 2018. The transition from Slovak accounting procedures to IFRS has an impact on the classification of individual items of assets and liabilities, their structure, and the classification of related costs and revenues. The transition to IFRS thus has an impact on the company’s financial position and performance. The paper set out two objectives of the research: 1) the transition to IFRS caused an insignificant change in the company’s financial indicators; 2) the transition to IFRS caused a significant change in the company’s financial indicators. The results of the analysis show changes in the structure of the company’s assets and liabilities, the amount of income and expenses, and the less significant impact of the adoption of IFRS on financial indicators.
Accounting, Reporting, Financial statements, Financial ratios.
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