Usefulness of the modified partial differences method in complex ratio analysis
Journal Title: Zeszyty Teoretyczne Rachunkowości - Year 2014, Vol 2014, Issue 76
Abstract
The aim of the paper is presentation of the theory behind the partial differences method and evaluation of its usefulness in contemporary, complex ratio analysis. The Taylor-series-based analysis facilitates calcu-lation in cases of complexity of the analyzed function and considerable number of explanatory variables; furthermore, the existence of the remainder term is the premise to ignore next terms of the Taylors series, which represent common differences. Such a step eliminates the problem of their sometimes embarrass-ing interpretation. An example of the efficient analysis of RIOA, i.e. the modified residual income to total assets ratio is presented. The system of the RIOA consists of nine factors.
Authors and Affiliations
Piotr Wójtowicz
Keywords
Related Articles
- EP ID EP66620
- DOI -
- Views 134
- Downloads 0
Portfolio analysis of accounts receivable
In this paper a set of analytical methods is proposed integrating accounts receivable collection measures and customer positioning depending on the customer's contribution to profits and the level of accounts receivable...
Układ pojęć konstytuujących teorię rachunkowości w kontekście nauk ekonomicznych
Każda teoria wyjaśniająca zjawiska rzeczywistego świata ma za podstawę pojęcia pierwotne i fundamen-talne zasady oraz definicje podstawowych koncepcji, które następnie są materią do formułowania stwier-dzeń orzekających,...
Teoria strukturacji Anthony’ego Giddensa i jej wykorzystanie w badaniach z zakresu rachunkowości zarządczej
Koncepcja strukturacji stawia sobie za cel zrozumienie praktyk społecznych określonych w czasie i przestrzenioraz leżących u ich podstaw zjawisk społecznych, a także ich wpływu na działania ludzi – aktorówspołecznych. D...
Comparability of financial reports of real estate developers in the context of Polish and international accounting regulations
The aim of this article is to present international regulations for real estate development activities, in particular IFRIC Interpretation 15 Agreements for the Construction of Real Estate, and to compare them with Polis...
Business model and its impact on accounting representation of an entity’s financial position
The main aim of the article is to analyze the concept of business model and its impact on entity’s financial situation and performance as depicted in the accounting system. The paper consists of three parts and a summary...