Radoslav Tusan – Department of Finance, Faculty of Economics, Technical University of Košice, Nemcovej 32, 042 00 Košice, Slovak Republic


DOI: https://doi.org/10.31410/LIMEN.S.P.2020.37


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.



Aharony, J., Barniv, R., Falk, H. (2010). The Impact of Mandatory IFRS Adoption on Equity Valuation of Accounting Numbers for Security Investors in the EU. European Accounting Review, 19(3), 535-578. https://doi.org/10.1080/09638180.2010.506285
Arens, A. A., Elder, R. J., & Beasley, M. S. (2003). Essentials of Auditing and Assurance Services. New Jersey: Prentice Hall

Aubert, F., Grudnitski, G. (2010). The Impact and Importance of Mandatory Adoption of International Financial Reporting Standards in Europe. Journal of International Financial Management & Accounting, 22(1), 1-26. https://doi.org/10.1111/j.1467-646X.2010.01043.x
Beneish, M. D., Miller, B. P., Yohn, T. L. (2015). Macroeconomic evidence on the impact of mandatory IFRS adoption on equity and debt markets. Journal of Accounting and Public Policy, 34(1), 1-27. https://doi.org/10.1016/j.jaccpubpol.2014.10.002
Bryce, M., Ali, M. J., Mather, P., R. (2015). Accounting quality in the pre-/post-IFRS adoption periods and the impact on audit committee effectiveness — Evidence from Australia. Pacific-Basin Finance Journal, 35(Part A 2015), 163-181. http://dx.doi.org/10.1016/j.pacfin.2014.12.002
Blanchette, M., Racicot, F., & Sedzro, K. (2013). IFRS Adoption in Canada: An Empirical Analysis of the Impact on Financial Statements. Toronto, Canada: Certified General Accountants Association of Canada.
Cameran, M., Campa, D., Pettinicchio, A. (2014). IFRS Adoption Among Private Companies: Impact on Earnings Quality. Journal of Accounting, Auditing & Finance, 29(3), 278-305. https://doi.org/10.1177/0148558X14534260
Chua, Y., L., Cheong C., S., Gould, G. (2012). The Impact of Mandatory IFRS Adoption on Accounting Quality: Evidence from Australia. Journal of International Accounting Research, 11(1), 119–146 https://doi.org/10.2308/jiar-10212
Clarkson, P., Hanna, J., D., Richardson, G., D., Thompson, R. (2011). The impact of IFRS adoption on the value relevance of book value and earnings. Journal of Contemporary Accounting & Economics, 7(1), 1-17. http://doi:10.1016/j.jcae.2011.03.001
DeFond, M., Hu, X., Hung, M., Li, S. (2011). The impact of mandatory IFRS adoption on foreign mutual fund ownership: The role of comparability. Journal of Accounting and Economics, 51(3), 240-258. https://doi:10.1016/j.jacceco.2011.02.001
Gordon, L., A., Loeb, M., P., Wenjie, Z. (2012). The impact of IFRS adoption on foreign direct investment. Journal of Accounting and Public Policy, 31(4), 374-398. http://dx.doi.org/10.1016/j.jaccpubpol.2012.06.001
Hakalová, J., Palochová, M., & Pšenková, Y. (2017). Globalization Trends in Financial Accounting and Taxation of Business Entities in Compliance with the Implementation of EU Directives and Upcoming Recodification of Tax Legislation in the Czech Republic. In: 17th International Scientific Conference Globalization and Its Socio-Economic Consequences. October 4th-5th, 2017 (pp. 613-620). University of Zilina, The Faculty of Operation and Economics of Transport and Communications, Department of Economics.
Hakalová, J., Pšenková, Z., & Losová, M. (2014). First-time Adoption of International Financial Reporting Standards for Business Corporations Based in EU Member State that are Issuers of Securities Admitted to Trading on Regulated Market. In I. Honová, et al. (Ed.), Proceedings of the 2nd International Conference on European Integration. May 15th-16th, 2014, (pp. 192-201). Ostrava: VŠB-Technical University of Ostrava.
Hong, H., A., Hung, M., Lobo, G., J. (2014). The Impact of Mandatory IFRS Adoption on IPOs in Global Capital Markets. The Accounting Review, 89(4), 1365–1397.https://doi.org/10.2308/accr-50720
Jiao, T., Koning, M., Mertens, G., Roosenboom, P. (2011). Mandatory IFRS adoption and its impact on analysts’ forecasts. International Review on Financial Analysis, 21, 56-63. https://doi:10.1016/j.irfa.2011.05.006
Kim, J., B., Liu, X., Zheng, L. (2012). The Impact of Mandatory IFRS Adoption on Audit Fees: Theory and Evidence. The Accounting Review, 87(6), 2061–2094 https://doi.org/10.2308/accr-50223

Lantto, A., M., Sahlström,P., (2009). Impact of International Financial Reporting Standard adoption on key financial ratios. Accounting & Finance, 49(2), 341-361. https://doi.org/10.1111/j.1467-629X.2008.00283.x
Lungu, C., I., Caraiani, Ch., Dascălu, C. (2017) The Impact of IFRS Adoption on Foreign Direct Investments: Insights for Emerging Countries, Accounting in Europe, 14(3), 331-357 https://doi.org/10.1080/17449480.2017.1374546
Mackenzie, B., Coetsee, D., Njikizana, T., Chamboko, R., Colyvas, B., & Hanekom, B. (2012). Interpretation and Application of International Financial Reporting Standards. New Jersey: Wiley and Sons Inc.
Müller, V., O. (2014). The impact of IFRS adoption on the quality of consolidated financial reporting. Procedia – Social and Behavioural Sciences, 109, 976-982. https://doi:10.1016/j.sbspro.2013.12.574
Outa, E. R. (2011). The Impact of International Financial Reporting Standards (IFRS) Adoption on The Accounting Quality of Listed Companies In Kenya. International Journal of Accounting and Financial Reporting, 1(1), 212-241.
Renders, A., Gaeremenyck, A. (2007). The Impact of Legal and Voluntary Investor Protection on the Early Adoption of International Financial Reporting Standards (IFRS). De Economist, 155, 49-72. https://doi.org/10.1007/s10645-006-9041-y
Verriest, A., Gaeremynck, A., Thornton, D., B. (2013) The Impact of Corporate Governance on IFRS Adoption Choices. European Accounting Review, 22(1), 39-77.https://doi.org/10.1080/09638180.2011.644699
Zaidi, S., Paz, V. (2015). The impact of IFRS adoption: a literature review. Journal of Theoretical Accounting Research, 10(2), 116-141.



Download Full Paper




Association of Economists and Managers of the Balkans – UdEkoM Balkan
179 Ustanicka St, 11000 Belgrade, Republic of Serbia

LIMEN conference publications are licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.