The impact of accounting development on business sector growth in Slovakia
The impact of accounting development on business sector growth in Slovakia

Summary/Abstract: Slovakia faced social and economic changes that led the country from a planned economy, through the Soviet model, and on towards a market economy in 1989, the implementation of European directives and then IFRS, the joining of the European Union in 2004 and the amendment of the Act of accounting to the New EU Directive 2013/34/EU in October 2013. This called for many legislative and practical changes to which Slovak institutions and companies had to adapt. This paper focuses on the role of accounting and financial reporting in the development of enterprises in Slovakia based on outlining the political and economic changes in the country as well as comparing the financial standing of listed companies in Slo-vakia and Poland in the years 2010–2012 with the use of cash flow analysis. The conducted analysis shows huge differences between Slovakia and Poland regarding the capacity to generate financial surplus from the current business by the majority of Slovak listed companies, the less frequent capital invest-ments and the raising of capital or obtaining of outside financing by a smaller portion of listed companies in Slovakia. 25% of the companies listed on the BSE carry out financial strategies typical of mature companies. Good results from the operational activity of these companies allow for investments and the repayment of liabilities. The stated hypothesis of an indirect and weak influence of accounting develop-ment on business sector growth in Slovakia was confirmed.

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