The Impact of IAS/IFRS on Polish Accounting Regulations and their Practical Implementation in Poland

Abstract

In the face of the globalization process that we have witnessed over recent years, the European Union (EU) decided that it is crucial to improve the competitiveness of Europe and the development of financial services and capital markets through enforcement of International Financial Reporting Standards (IFRS) as a basis of financial reporting of listed companies. Poland as a member of the EU was obliged to incorporate International Accounting Standards (IAS)/IFRS in national accounting regulations. Our paper discusses this issue. We also present the impact of IAS/IFRS implementation by Polish companies on their financial statements, particularly the impact on income and equity (capital). The presentation is the result of the review and analysis of 255 financial reports (including 171 consolidated) of companies listed on the Warsaw Stock Exchange.

Notes

1. Alicja Jaruga, survey conducted in 2004 on behalf of the Accounting Standards Committee in Poland to the questionnaire: ‘IFRS in domestic legislation’. Survey was based on interviews with auditors, chief accountants and financial managers of more than 40 companies.

2. Financial reports of nearly all companies listed on the Warsaw Stock Exchange (including 171 consolidated financial statements).

3. Data does not present changes relating to incorporation of minority interest into equity.