Abstract
The IFRS 8, the operating segments was converged of the IAS 14 and SFAS 131(US GAAP). It was issued in November 2006 and subsequently has been applied since 2009. The core of convergence is to reduce the differences between IAS 14 and SFAS 131. The IASB expected that a change would increase useful information for users and can be used as a single set of standard accounting for international trade. However, since the standard had been applied, it emerges advantages and disadvantages for users and entities on some issues. Particularly, internal management information issue that managers use as a compass to lead the company's strategies and it conceals behind the scenes conventionally. The paper investigates a quality of information disclosure in the Czech listed companies. The important pillar is to analyse the quality of information disclosure and the effect of applying the standard.
Highlights
The International Financial Reporting Standards are the global accounting standard bridge that connects the global economic
In the prior of the standard, many research had been made by International Accounting Standard Board (IASB), which results in most of the users favoured SFAS 131 management approach over IAS14R (IFRS 8: BC10)
The findings suggest that by applying IFRS 8, companies disclose voluntarily potential information as well as the reportable might increase in some geographic segments but not differ significantly from the IAS 14R’s requirements
Summary
The International Financial Reporting Standards are the global accounting standard bridge that connects the global economic. They were extensively adopted by 140 countries, at least, all around the world (IASB: 2015). In 2006, the International Accounting Standard Board (IASB) issued IFRS 8 Segment Reporting, which adopted the management approach and was based closely with SFAS 131. The convergence of IAS14R and the SFAS 131 (US GAAP) concerns the potential keys that the users would discriminate internal management; the discretion decision will be supported . In the prior of the standard, many research had been made by IASB, which results in most of the users favoured SFAS 131 management approach over IAS14R (IFRS 8: BC10). The controversy arose in many important keys namely, the flexibility of standard’s definition, regarding internal management movement, requiring Non-IFRS measurement
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