M41 - AccountingReturn

Based on QAD (quality of accounting data) information it is possible to determine how the company is able to manage its economic activities. The basic element is the level of QAD perceived by users of accounting information. This article describes using the analytic hierarchy process (AHP) to get an overview to the quality of accounting information. Then there is used statistical methods T-test and Kolmogorov-Smirnov test to set the differences between QAD in audited and unaudited companies. The first step is to define the various criteria which adversely affect the quality of accounting data and then their assignment to groups according to the context. Subsequently, on the basis of Saaty's method determine the weights of the criteria in each group and then by using the AHP method determine their importance. Then the quality of accounting data in 71 companies is determined and the differences between accounting data quality of audited companies and accounting data quality of unaudited companies are detected.

With the growing importance of small and medium-sized enterprises there is also need to harmonize their financial statements. In this connection IFRS for SME has been developed but currently, it is not part of Czech or European accounting legislation. However, there are some countries in the world that have already adopted this standard and incorporated it in their national legislation. The aim of this paper is to identify the advantages and disadvantages associated with the implementation of IFRS for small and medium-sized enterprises involved in agricultural activities and operating in the Czech Republic. This paper is based on existing experience with implementation of the standard in some countries of the world and a questionnaire survey which was carried out on a sample of agricultural enterprises in the Czech Republic. From the survey it is evident that the representatives of the accounting units interviewed are concerned predominantly about greater administrative burden, which is already now considered to be a major obstacle in the business of small and medium-sized enterprises in the Czech market, and a number of them are also concerned about high implementation costs connected with the adoption of IFRS for SME.

The specific nature of agricultural activity compared to other business activities undertaken for profit requires different methodological approaches for its recoginition, measurement, recording and reporting. Since most farms in the EU are SMEs and standardization of financial reporting for these businesses in the form of the IFRS for SMEs has not yet been approved by the European Commission, special financial reporting of methodological approaches has not been applied in the agricultural sector yet. This contribution deals with the potential impact of implementation of IFRS for SMEs in agricultural activities and proposes possible methodological procedures for accounting solutions that are in accordance with the IFRS for SMEs, including indicators for evaluation of the impact of the financial analysis that are affected by the choice of methodological approach.