EUFIN 2012 - Vysoká škola ekonomická v Praze

Our research comes to a conclusion, that translation of Czech statements to IFRSmay cause changes in the value of financial indicators without relationship tothe real change in the firms value, performance and stability. Even though thefindings were not statistically significant the indicative results of ourmeasurements disclosed an important fact that the transition to IFRS couldcause deterioration of key indicators and thereby could impact on the overallrating of companies. One needs to be cautious with generalization due to thesmall sample size.2-4/1 Thursday, 16:30 - 18:30, Room: RB 115 ID: 46Stefanie CEUSTERMANS (Vrije Universiteit Brussel), Diane BREESCHFinancial reporting regulation: Valuable or burdensome? An exploratory testcasefor micro-entitiesAlthough the literature suggests there are incentives for companies to voluntarydisclose all their financial information, in reality it seems that companiestypically do not disclose more than regulation requires. One reason for this isthat disclosing information is costly for the company, whereas the benefits aremainly incurred by the public. Regulation may be justified to ensure a certainlevel of transparency to protect those stakeholders who don not have the powerto extract information from the company. Although there are both argumentsfor and against regulation, it remains largely an empirical question whetherthere should be disclosure regulation and to what extent. The existing literaturethat examines the cost and benefits of financial reporting regulation does somainly in a context of capital markets, leaving the need for financial reportingregulation in the small private context largely unexplored. The aim of this paperis therefore to explore the costs and benefits of financial reporting regulation forSMEs. In the light of the current developments and deregulation debate, anexploratory test-case was conducted on the costs and benefits of financialreporting for micro-entities. This might be interesting since the net benefits arelikely to be less evident for the smallest companies because of the higher cost ofcompliance and the proportionately lower public interest in micro-entities.2-4/2 Thursday, 16:30 - 18:30, Room: RB 115 ID: 58Markus GROTTKE (University of Passau), Thomas SPAETH, Felix HAENDELlEconomic Consequences of IFRS for SMEs - Evidence from German Small andMedium Sized CompaniesIn July 2009 the IASB finalized its Accounting System IFRS for SMEs. Since thendebates have taken place whether this accounting standard is suitable forintroduction throughout Europe. We add to the debate by presenting the results8 th Workshop on European Financial Reporting, Prague September 6 – 7, 2012 29