Usefulness of reporting of small entities for verification of their financial standing
Journal Title: Zeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie - Year 2016, Vol 30, Issue 2
Abstract
The amended Accounting Act in force since 2015 introduced a possibility for micro and small businesses to use simplifications. Unfortunately, in the opinion of their recipients, these simplifications have limited the ability to infer the financial standing of these firms on their basis. There is an important information gap concerning transactions effected with the owners being also managers. It is the owner who is a fundamental qualitative feature of micro and small enterprises, therefore, settlements with the owners are of critical significance for the assessment of the financial standing of a firm. Supplementing reports with the owner’s data and transactions with him would enhance their informative quality. The author conducted a ratio analysis and a horizontal analysis of the balance sheet and the profit and loss account in the full version and the simplified version of a selected micro-enterprise managed by the owner. The study showed the weaknesses of inferring the situation of the company based on the simplified statement. The necessity to extend the balance sheet information with the data on the type and value of transactions with the managing owner should be considered. It seems that the introduction of the position in the current assets of the balance sheet would enable more comprehensive preliminary assessment of the financial standing of an entity.
Authors and Affiliations
Edyta Piątek
Keywords
Related Articles
- EP ID EP190904
- DOI -
- Views 64
- Downloads 0
Conditionings of tourist entity operations
The article describes the external conditionings of tourist entities' operations, including changes in lifestyle and social needs as well as phenomena and processes characterising the sphere of economy. The article also...
Ecomuseums as an innovative tourism product illustrated with an example of Ecomuseum of Crafts in Dobków
The aim of this paper is to present the concept of ecomuseums as an innovative and modern tourism product. The paper pays special attention to an exceptional ecomuseum in Poland, namely the Museum of Crafts in Dobków. Th...
Reasons for the insufficient use of e-learning in the employee training process in the sector of small and medium enterprises
The aim of the article is to identify the reasons for the insufficient use of e-learning training in the SME sector and to indicate ways to reduce it, as well as to present the results of empirical research. The implemen...
Scenariusze zrównoważonego rozwoju obszarów wiejskich
Scenariusze rozwoju obszarów wiejskich wynikają z ich zróżnicowania, a także stopnia przedsiębiorczości mieszkańców. Zróżnicowanie wynika z historii, relacji centrum – peryferie, „renty położenia”, efektów działań władz...
Personal strategies in contemporary enterprises
Taking current conditions into account, the enterprises have to apply a strategic approach to human resources management. The purpose of a human resource strategic management is to recruit and retain the best employees,...