The process of economic integration and globalization in the area of financial reporting, focusing on publication of financial statements in the Czech Republic and in selected countries of the European Union

Hana Bartková,Marek Pomp,Marcela Palochová,T Kliestik

doi:10.1051/shsconf/20219202004

Hana Bartková, Marek Pomp + Show 2 more

Open Access

https://doi.org/10.1051/shsconf/20219202004

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Abstract

Research background: One of the most important features of the current development of the world economy is international integration, which is taking on global dimensions. Operations of transnational companies and the development of the global capital market brings the necessity of accounting harmonization. The goal of this is to ease the mutual observation, reporting, use and thus creation of a single, international accounting. Purpose of the article: The purpose of this article is to describe the current state of the process of harmonization during preparing the annual accounts in the Czech Republic and in selected countries of the European Union, with the analysis of impacts of change in the legislative framework to the obligations of entities in the area of preparation and publication of financial statements. Methods: Scientific procedures using theoretical methods were used in the paper, which include description, analysis, synthesis, comparison and evaluation, inclusive of processing and evaluation of data and information obtained from research conducted by business entities in the Czech Republic. Findings & Value added: The article analyses the impacts of the process of harmonization and globalization on the area of financial reporting and on publishing financial statements. Based on the acquired theoretical and practical knowledge, the paper suggests possible solutions to improve the informational obligations of accounting units. The paper also evaluates the achievement of compliance in the area of reporting financial statements from the perspective of the Czech Republic and selected countries of the European Union.

Highlights

The progress of economic integration and worldwide globalization has influenced financial reporting
Legal framework of financial statements in the Czech Republic is given by the Act no. 563/1991 Coll., on Accounting, as amended, § 18 to § 23b, and further by the Implementing Decree no. 500/2002 Coll., which implements some provisions of Act on Accounting no. 563/1991 Coll., as amended
The preparation of the financial statements is governed by the Czech Accounting Standards for Entrepreneurs no. 001 to no. 003, or by the International Financial Reporting Standards

Summary

Introduction

The progress of economic integration and worldwide globalization has influenced financial reporting. The basic trend in this area is positively to harmonize the processes of completion and reporting of financial statement, which is to become the comprehensible language of business communication. Financial statement brings important information about accounting entity. The accounting entity provides statements of equity and its changes and cash flow statement Their content provides a report primarily to external users about the financial position and performance of the entity and informs about the development of their cash flows and changes in equity. The users of the financial statements are primary creditors, investors, owners, and the state, employees, competitors or the public, who make a number of important economic decisions based on it

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