ACCOUNTING HARMONIZATION - A CONSEQUENCE OF GLOBALIZATION AND INTERNATIONALIZATION

Abstract

The financial system of the market economy is currently based on a trust in accounting data. The financial statements present the entity in terms of its financial position and in terms of its performance. It´s disclosure capability is as fundamental importance to its users, significant decisions are often taken with long-term consequences based on the information contained in the financial statements. The way and scope of financial accounting regulation is different at the national level, however, in the context of advancing globalization and the internationalization of capital markets, the importance of international accounting harmonization is increasing. The general accounting principles and procedures used in the various countries of the world are gradually unifying. Harmonization of accounting leads to increasing the comparability, clarity and reliability of economic information. The purpose of this contribution is to compare financial statements according to national accounting adjustments and according to IFRS, which usage is legislatively defined in the Czech Republic, also the definition of the significant differences between Czech accounting regulations and international financial reporting standards IFRS. The comparison of financial statements according to Czech accounting regulations and IFRS is made using the data of the real enterprise. Discovered differences are discussed in relation to selected indicators of financial analysis.