Title:

The effect of the changes in accounting estimates of the discount rate to the costs on account of creating provisions

Group publication title:

Financial Sciences. Nauki o Finansach

Title in english:

Wpływ zmian szacunków stopy dyskontowej na koszty tworzenia rezerw

Creator:

Staszel, Anna ; Hołda, Artur

Subject and Keywords:

discount rate ; long-term provisions ; reliability of financial statements ; estimations ; true and fair view ; stopa dyskontowa ; rezerwy na świadczenia emerytalne ; wiarygodność sprawozdań finansowych ; zasada true and fair view

Description:

Financial Sciences. Nauki o Finansach, 2019, vol. 24, no. 1, s. 94-114

Abstrakt:

The aim of the study is to answer the question of how a slight change in the actuarial assumptions (regarding the discount rate used) can affect the amount of the provisions, and consequently create the level of costs in the entity. In order to find the answer the financial statements of 148 stock-exchange-quoted companies from 2007 to 2014 (1184 financial statements in total) were analysed, determining whether the changes in long-term provisions for retirement benefits provisions (due to the use of a different discount) have a significant impact on the financial statements of these companies. The research involved the use of deductive-inductive research methods in the form of literature review and analysis of the content of financial statements. The obtained results indicate that the estimation of the discount rate significantly affects the levels of costs related to creating provisions, which may be an effective tool for manipulating the financial result.

Publisher:

Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu

Place of publication:

Wrocław

Date:

2019

Resource Type:

artykuł

Resource Identifier:

doi:10.15611/fins.2019.1.06

Language:

eng

Relation:

Financial Sciences. Nauki o Finansach, 2019, vol. 24, no. 1

Rights:

Pewne prawa zastrzeżone na rzecz Autorów i Wydawcy

Access Rights:

Dla wszystkich zgodnie z licencją

License:

CC BY-NC-ND 3.0 PL

Location:

Uniwersytet Ekonomiczny we Wrocławiu