DOI: 10.5176/2251-1997_AF14.12
Authors: Simona Jirásková, and Tereza Miková
Abstract:
Due to the highly developing economic environment, the ability to have financial statements in time is getting more important. Selected accounting methods have a strong impact on reported financial information. Thanks to the requirements of those accounting methods disclosed in the notes of financial statements, the potential investors have relevant information. On the other side there are the operations which can be decided by managers only for the purpose of enhancing the firm´s performance to appear more profitable. All those methods called earnings management and the second one mentioned is real earnings management. The paper in the first part will further define earnings management, classifying it into subsections and states of the selected methods of real earnings management, for example timing of non-current assets. The importance of tax planning in the field of whole earnings management is taken into account in the next part. The last part of our paper concentrates on the situation in the Czech Republic. The hypothesis asks if the effective tax rate is different among the various economic sectors in the Czech environment.
Keywords: Earnings management, tax planning, pre-tax income, taxable income, took-tax differences
Updating...