GAMBLING REVENUES AND TAXES IN THE FINANCIAL STATEMENTS OF EUROPEAN COMPANIES
GAMBLING REVENUES AND TAXES IN THE FINANCIAL STATEMENTS OF EUROPEAN COMPANIES

Author(s): Éva Karai, Maria Lakatos, Judit Nagy, Janos Erdei
Subject(s): Business Economy / Management, Accounting - Business Administration
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Gambling Revenue; Gambling Tax; Comparability of Financial Statements.
Summary/Abstract: Not only the operating system but the accounting method is strongly regulated in gambling companies. The accounting and tax regulations that differ by countries influence the accounting practices and so the financial statements of the companies. Revenues are one of the main indicators of the financial performance of an entity. We studied the presentation form and content of European gambling revenues using the presented financial statements of gambling companies between 2004 and 2013. We examined whether the divergent recognition and measurement methods led to a material impact on the comparability of the financial statements. Our results show that the potentially high gambling tax rate and its different accounting practice can hamper the decision making of users of these financial statements and the reliability of revenue-based indicators both on company and industry level. If specific interpretation or guidance for the gambling sector existed, financial statements provided enhanced information.

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