One or Two Statement Approach for the Income Statement of Czech Companies?

Purpose of the article: The article examines the IAS 1 revised that allows the company to choose between a reclassification of items by nature or by function (destination), it also provides two alternative presentations of the income statement: a single statement of comprehensive income or two statements, the first containing the components of net income, and the second that, starting from net income, shows the other components of expanded income. Methodology/methods: First we outline the principal theories of the statement of comprehensive income, secondly we concentrate the research to obtain the empirical data. The research is developed in the following steps: selection of the companies surveyed; selection of the documents to be analysed; election of the empirical aspects to be studied. Scientific aim: The aim of the research is to define which format has been adopted by companies listed on the Czech Republic Stock Exchange for the new Income Statement to be prepared according to the International Accounting Standards – IAS 1 revised in 2007. In particular, we examine the Consolidated Financial Statements 2010 published online. Findings: This article illustrates the two choices that have the companies to present items of net income, items of other comprehensive income and total comprehensive income: they can create one continuous statement of comprehensive income or two separate consecutive statements. Conclusions: The results show that the Czech financial statements have not a firms’ propensity to separate the section of the income statement in two statements rather than to integrate it into a single one, while the reclassification of the income statements privileges the reclassification by nature

Is total comprehensive income or net income better for the evaluation of companies\u2019 financial performance?

The aim of the paper is to compare the utility of the net income and the total comprehensive income for the evaluation of goodness in connection with companies\u2019 investments. For the research, we use the data of the consolidated financial statements for 2010, 2011 and 2012 published online by companies listed on the Prime Market of the Czech Republic Stock Exchange. In the last part of the work, we show the results of empirical research on the income statement of the Czech companies, which have adopted IAS/IFRS principles. The results show that the Czech companies\u2019 financial statements have no propensity to separate the income statement section into two statements rather than integrating it into a single one, while the reclassification of the income statements privileges the reclassification by nature. The results show that the total comprehensive income possesses informa- tive content and gives further information for the evaluation of financial performance

Is total comprehensive income or net income better for the evaluation of companies’ financial performance?

The aim of the paper is to compare the utility of the net income and the total comprehensive income for the evaluation of goodness in connection with companies’ investments. For the research, we use the data of the consolidated financial statements for 2010, 2011 and 2012 published online by companies listed on the Prime Market of the Czech Republic Stock Exchange. In the last part of the work, we show the results of empirical research on the income statement of the Czech companies, which have adopted IAS/IFRS principles. The results show that the Czech companies’ financial statements have no propensity to separate the income statement section into two statements rather than integrating it into a single one, while the reclassification of the income statements privileges the reclassification by nature. The results show that the total comprehensive income possesses informa- tive content and gives further information for the evaluation of financial performance

Is total comprehensive income or net income better for the evaluation of companies' financial performance?

The aim of the paper is to compare the utility of the net income and the total comprehensive income for the evaluation of goodness in connection with companies’ investments. For the research, we use the data of the consolidated financial statements for 2010, 2011 and 2012 published online by companies listed on the Prime Market of the Czech Republic Stock Exchange. In the last part of the work, we show the results of empirical research on the income statement of the Czech companies, which have adopted IAS/IFRS principles. The results show that the Czech companies’ financial statements have no propensity to separate the income statement section into two statements rather than integrating it into a single one, while the reclassification of the income statements privileges the reclassification by nature. The results show that the total comprehensive income possesses informative content and gives further information for the evaluation of financial performance

Is total comprehensive income or net income better for the evaluation of companies’ financial performance?

The aim of the paper is to compare the utility of the net income and the total comprehensive income for the evaluation of goodness in connection with companies’ investments. For the research, we use the data of the consolidated financial statements for 2010, 2011 and 2012 published online by companies listed on the Prime Market of the Czech Republic Stock Exchange. In the last part of the work, we show the results of empirical research on the income statement of the Czech companies, which have adopted IAS/IFRS principles. The results show that the Czech companies’ financial statements have no propensity to separate the income statement section into two statements rather than integrating it into a single one, while the reclassification of the income statements privileges the reclassification by nature. The results show that the total comprehensive income possesses informa- tive content and gives further information for the evaluation of financial performance

Impairment Test in the Football Team Financial Reports

Abstract The aim of the paper is to analyze the valuation and the application of the impairment test of intangible assets of Italian football teams. The purpose is to understand how and what kind of information each club discloses on their financial reports the values of player registrations. The study considers the evolution of the reports from the ruling of UEFA Financial Fair Play Regulations ( UEFA, 2009 ) in the years 2010–2015. The study demonstrates that only some clubs have reached the beak-even goal and that only some teams give impairment test information in the statement and in the attached notes

CSR Trough the Internet: The Case of Italy

The aim of the paper is to analyze the level of acceptance of social responsibility practices in Italy and in particular to evaluate the degree of social responsibility arising from the websites of Italian listed companies. CSR communication contributes to a corporation’s corporate social disclosure, whose main purpose is to enhance a corporate image in order to promote customer and community relations and indirectly promote products to customers. To reach this goal, transparency is crucial. However transparency in the field of CSR is a difficult matter for two reasons: there is not uniformity in social reporting and the preparation of this document is not mandatory. The research is divided into two sections and the approach used is mainly descriptive: in the first part the concept of social balance as a means to interact with all the stakeholders of a firm is exposed. In the second part the paper analyses the web sites of a panel of selected listed Italian companies. The data are able to demonstrate that the size of the company still represent a barrier to CSR reporting and communication since require efforts and investment in term of time and resources. The research also shows that those company identified as “best practice” in the selected panel have a common strength: they attach an importan role to CSR in their corporate websites as a way to improve their image from the perspective of the multiple stakeholders

The Connection between IAS/IFRS and Social Responsibility

The aim of the paper is to evaluate the degree of social responsibility arising from the statement of comprehensive income prepared according to IAS/IFRS, to demonstrate whether the values obtained from prospects and from the calculation of the indicators are sufficient to analyze the Company's performance from the perspective of social responsibility and sustainable value or not. In order to achieve the objective of harmonization, the European Union adopted the IAS/IFRS developed by the International Accounting Standards Board (IASB). The research is divided into two sections and the approach used is mainly theoretical and qualitative. In the first part, the financial statements to be prepared according to IAS 1 and IAS 7 and, in particular, the so called statement of profit or loss and other comprehensive income for the period are analyzed by underling the function of the same and by presenting some financial performance indicators. Then, the research highlights how these values obtained are not useful to communicate the company's strategy in terms of social responsibility and sustainable value. In the second part the analyses exposes the concept of social balance. According to the social responsibility view the IAS/IFRS financial statements should be accompanied by the social balance. It becomes crucial to complete the set of financial statements stated from IAS 1 with a social balance as well as the same IAS 1 contemplates. For this reason it is possible to say that the connection between IAS/IFRS and social responsibility is weak

CSR and Social Entrepreneurship: The Role of the European Union

The aim of the paper is to analyze the status of non-financial information disclosure in the European Union in order to evaluate the level of acceptance of social responsibility practices. The research is divided into two sections and the approach used is mainly theoretical and qualitative. In the first part the UE financial and non-financial information regulations are analyzed; the European Union launched a process of harmonization then subsequently it moved to the standardization process: the Regulation (EC) No. 1606/2002 is part of the standardization process (It must be applied in its entirety across the EU) while the Directive 2014/95/EU is part of the harmonization process (it sets out a goal that all EU countries must achieve). The Directive 2014/95/EU states that “large undertakings […] shall include in the management report a non-financial statement […]” thus making mandatory the preparation of non-financial statements. In the second part of the research, not considering the firm only as a system for the production of financial/economic value but also as an economic social actor which operates in a social environment to which it belongs and with which it interacts, the concept of social entrepreneurship is explained. Social entrepreneurship belongs to the entrepreneurs who draw up the social balance, required or permitted by the UE legislation. For this reason, the introduction of obligations in disclosing non-financial information could lead to the increase of entrepreneurship, with positive consequences in the creation of tangible benefits to both the business community and the global community.

CSR and Social Entrepreneurship: The Role of the European Union

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