Pojemność informacyjna rachunku zysków i strat małych jednostek gospodarczych
Information capacity of profit and loss accounts in small economic entities

Summary/Abstract: In accordance with the recommendations of the EU Directive, the scope of financial reports required from economic entities should be adjusted to company size. This recommendation, in the form of the proportionality principle, should also apply to the profitand- loss accounts submitted as part of the obligatory financial reporting procedures. Small economic entities are exempt from certain reporting obligations; they may also prepare their profit-and-loss accounts in a simplified form. Such simplifications are provided for, both in the text of the EU Directive on financial reporting and the Polish Accounting Act. This paper presents the content of such simplified forms of profit-and-loss account, as defined in the above provisions. The value of information submitted in simplified accounts is analysed, both from the viewpoint of their decision-making utility for the user and their capacity for depicting a true image for profitability evaluation purposes.

• Details
• Contents