Abstract
The goal of this study is to describe and summarize the differences between national accounting rules and international standards, then the valuing and analyzing their effects on business decisions, management performance and economic environment in Hungary. Financial data are from published financial statements and Hungarian Business Information database. My sample comprises 65 international standards adopting and 260 local accounting rules user firms. This paper showed that both businesses earnings and stock returns effect on the management turnover. Businesses with lower labour productivity compared to their industry peers have greater incentives to adopt international accounting standards. Sensitivity of CEO turnover to accounting earnings increased after the adoption of international system. Businesses with higher leverage and lagged sales growth have more frequent employee layoffs. Standards user enterprises’ employee layoffs are more response to accounting performance in the post-adoption period.
Highlights
The goal of international business accounting is to provide a set of tools that can be used to meet the requirements of each application
This study examines the impact of the adoption of international accounting standards on the management performance of businesses listed on the Budapest Stock Exchange in Hungary
In order to identify the results of my scientific research about the evaluation of the accounting standards in Hungary I have elaborated the following hypotheses: H1: Businesses with lower labour productivity compared to their industry peers have greater incentives to adopt international accounting standards
Summary
The goal of international business accounting is to provide a set of tools that can be used to meet the requirements of each application. Since accounting applications do not have uniform security and reliability requirements, it is not possible to devise a single accounting protocol and set of security services that will meet all needs. Managers of businesses use accounting information to set goals for their organizations, to evaluate their progress toward those goals, and to take corrective action if necessary. Modern business accounting renders its services to a wide variety of users: investors, government agencies, the public, and management of enterprises, to mention but a few. Many accountants work in business enterprises as managerial accountants, internal auditors, income tax specialists, systems experts, controllers, management consultants, financial vice presidents, and chief executives
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