Impact of IFRS Reporting on Prediction of Development of Financial Conditions of Czech Firms
Dana Kubíčková, Irena Jindřichovská

Abstract
According to the international agreements since the year 2005 all the companies operating on the EU capital markets have to prepare their financial statements in accordance with the IFRS. Financial statements according the IAS/IFRS give different set of data in comparison with statements based on the Financial Statements according to national Accounting Standards. The assessment of the firms´ future destiny can therefore be affected by different accounting procedures. The selected indicators of Altman Z-score model summarize the most sensitive areas of the firm´s financial condition and its efficiency. We claim, that these indicators reveal the most important the impact of IFRS reporting in special structure and affect the final value and prediction of firm´s future. The aim of this paper is a thorough analysis of the changes in prediction of the firm´s future caused the different principles of reporting. Through the analysis of indicators´ changes on sample of 30 Czech firms we assess the main reason of these changes. The results of our study confirmed the existence of the impact of different accounting procedures. It has been confirmed that the changes of Z-score were statistically significant in our set of firms. The changes of partial indicators were confirmed as statistically significant the indicator of retained earnings to total assets and turnover of assets. Items entering the calculation of financial indicators were also confirmed as significantly different. These were in particular: the net working capital, total assets, accumulated earnings, EBIT and liabilities.

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