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Fulfillment of IFRS 2 Disclosure Requirements by Companies Listed on the Prague Stock Exchange

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  • Martin Červený

Abstract

The aim of this paper is to assess the quality of share-based payments' disclosure in compliance with IFRS 2 by companies listed on the Prague Stock Exchange. The study shows how companies in the Czech market utilizing share-based payments meet the requirements given by IFRS 2 framework and in order to support the arguments, it compares the results with randomly selected companies from the German DAX index, which represents a well-developed market. The focus is on three key principles of disclosure, as defined by the IFRS 2. As we will demonstrate, Czech corporations do meet the regulatory minimum requirements, but they fail to utilize some of the advanced valuation methods and their reports are generally rather brief compared to their German counterparts.

Suggested Citation

  • Martin Červený, 2017. "Fulfillment of IFRS 2 Disclosure Requirements by Companies Listed on the Prague Stock Exchange," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2017(3), pages 53-64.
    • Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:3:id:187:p:53-64
    DOI: 10.18267/j.efaj.187
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    Cited by:

    1. Kateřina Polachová, 2019. "Compliance with IAS 2 in consolidated financial statements of PSE listed companies," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2019(3), pages 61-78.
    2. Lucie Brabcová, 2018. "Compliance with IAS7 by Issuers of Listed Securities in the Czech Republic," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2018(3), pages 73-89.
    3. Petr Vácha, 2019. "Revenue disclosure requirements: IFRS vs. Czech accounting principles [Požadavky na zveřejnění v oblasti výnosů: IFRS vs. české účetní předpisy]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2019(1), pages 35-49.
    4. Luboš Hlinovský, 2019. "Transparency and Application of IAS 20 by the European Air Navigation Services Providers [Transparentnost a aplikace IAS 20 v podmínkách evropských poskytovatelů letových provozních služeb]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2019(1), pages 51-63.

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    More about this item

    Keywords

    IFRS 2; Share-Based Payments; Employee Stock Options;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

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