| Issue |
SHS Web of Conf.
Volume 92, 2021
The 20th International Scientific Conference Globalization and its Socio-Economic Consequences 2020
|
|
|---|---|---|
| Article Number | 02012 | |
| Number of page(s) | 8 | |
| Section | Behavioral Economics and Decision-Making | |
| DOI | https://doi.org/10.1051/shsconf/20219202012 | |
| Published online | 13 January 2021 | |
International Financial Reporting Standards as a tool for Earnings management
University of Zilina, Faculty of Operation and Economics of Transport and Communication, Department of Economics, Univerzitna 8215/1, 010 26 Zilina, Slovak Republic
* Corresponding author: aneta.cugova@fpedas.uniza.sk
Research background: The idea of harmonizing accounting at the international level gradually began to spread from the second half of the 20th century as a result of globalization and the growth of international trade. Due to the expansion of this business, users of financial statements have a need for comparability and transparency. National accounting legislation was so different that a reliable assessment of companies from different national backgrounds was not possible. The intention was to create uniform, globally applicable accounting standards.
Purpose of the article: This paper clarifies the theoretical background of selected accounting standards that can significantly expand the scope for earnings management.
Methods: Basic scientific methods of analysis, synthesis, induction, deduction and abstraction were used to meet the stated goal.
Findings & Value added: The correct application of IFRS can increases the scope for discretionary accounting practices. The change in reporting and valuation according to domestic legislation to reporting and valuation according to international standards may, to varying degrees, affect the picture of the financial position as well as the achieved profit of the company.
Key words: International Financial Reporting Standards / International Accounting Standards / conceptual framework
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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