International Accounting Standards Effects on Business Management

Jeno Beke

Abstract


Business strategy must be supported by appropriate organizational factors such as accounting information systems. Managers of businesses use accounting information to set goals for their organization. The fundamental purpose of management accounting is to help an organization achieve its strategic objectives. International management accounting is the practical application of management techniques to control and report on the financial resources of the business entities. With increasing globalization of the marketplace, international investors need access to financial information based on harmonized accounting methods and procedures. This study examines the impact of the adoption of international accounting standards on the management performance of businesses. The purpose of this study was the measuring the differences between the national rules and the international methods, the valuing and analyzing their effects on the business decisions. The result of this scientific research showed that the management performance indexes deteriorated especially regarding solvency and prosperity after adaptation of IFRS in the examined companies’ case. The practical results showed an unpleasant picture regarding solvency and profitability at the examined companies. The IFRS adaptation had an influence on decreasing income of business managers. The author can advise for international management researchers to employ these methods and measure their effects on practical management functions.


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DOI: http://dx.doi.org/10.5296/bms.v2i1.660

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