Artikel
The unintended consequences of accounting harmonization in a transition country: A case study of management accounting of private Czech companies
The paper addresses the impact of adoption of International Financial Reporting Standards on the mutual relations between financial and management accounting of private Czech companies under foreign control. Being acquired by a parent company, a subsidiary loses its independence and faces institutional duality, as it must respond to the parent's directives and is simultaneously confronted with local pressures. Using data from a survey, the logistic regression model provides evidence that subsidiaries under foreign control steadily integrate IFRS-based principles into their management accounting subsystems. The study extends current research on the integration of management and financial accounting by identifying a special case from a transition country where management accounting of subsidiaries converges with financial accounting of parents. A radical change in the traditional organization of management accounting is the strategic response of subsidiaries to the constraints of the local regulatory framework for financial reporting and taxation. However, aligning subsidiary practices with the parent's goals is conditioned by the existence of a functioning compensation scheme of the subsidiary's management with reference to IFRS-based results.
- Language
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Englisch
- Bibliographic citation
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Journal: Contemporary Economics ; ISSN: 2300-8814 ; Volume: 11 ; Year: 2017 ; Issue: 4 ; Pages: 443-458 ; Warsaw: University of Finance and Management in Warsaw, Faculty of Management and Finance
- Classification
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Wirtschaft
Accounting
- Subject
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IFRS adoption
Transition country
Private companies under foreign control
Parent-subsidiary links
Financial and management accounting
- Event
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Geistige Schöpfung
- (who)
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Procházka, David
- Event
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Veröffentlichung
- (who)
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University of Finance and Management in Warsaw, Faculty of Management and Finance
- (where)
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Warsaw
- (when)
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2017
- DOI
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doi:10.5709/ce.1897-9254.255
- Handle
- Last update
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10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Procházka, David
- University of Finance and Management in Warsaw, Faculty of Management and Finance
Time of origin
- 2017
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Comparative Analysis of the National Accounting Standards of the Czech Republic and Lithuania
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Land cover accounting in the Czech Republic
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Chinese accounting standards : the harmonization of Chinese accounting standards with international accounting standards
Harmonization of accounting standards : achievements and prospects
Unintended consequences of changing accounting standards : the case of fair value accounting and mandatory dividends
Accounting Interpretation of Cross-border Mergers in the Czech Republic Based on Czech Accounting Standards
Integration of Green Accounting Into Romanian Accounting System
Comparative Analysis of Czech Accounting with International Regulation from SMEs Perspective
Basics of accounting : bookkeeping, financial statements and management accounting
Basics of accounting : bookkeeping, financial statements and management accounting
Comparative Analysis of the National Accounting Standards of the Czech Republic and Lithuania
Material Flow Cost Accounting in Czech Environment
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