Accounting as a Source of Financial Information on Insolvency in Liquidation Proceedings
12/2020 28 (4) Central European Management Journal
Purpose: The purpose of this paper was to indicate which information originating in accounting is important for ensuring the information transparency of bankruptcy proceedings.
Methodology: Based on the literature review and the analysis of international legal acts, we determined priority types of information from accounting used in bankruptcy court proceedings. These types included information on the costs of insolvency proceedings, the assumption in the financial statements that there was no going concern, and the book value of assets. A survey was then conducted on a group of specialists in the field of bankruptcy.
Findings: Respondents indicated information on the costs of bankruptcy proceedings as the most important. However, other accounting information under study also received a high assessment from insolvency specialists. The obtained assessments of individual quality features are characterized by high reliability confirmed by low standard errors.
Research implications: Accounting evolves as a response to the information needs of accounting information users. Therefore, knowing these needs may contribute to changes in the requirements regarding the scope of information from accounting that is used in bankruptcy proceedings.
Originality/value: In-depth knowledge of various aspects of the economic side of the bankruptcy phenomenon is part of the current trend in minimizing the negative effects of bankruptcy.
Bauer, Kinga & Hospodka, Jan (2020). Accounting as a Source of Financial Information on Insolvency in Liquidation Proceedings. (2020). Accounting as a Source of Financial Information on Insolvency in Liquidation Proceedings. Central European Management Journal, 28(4), 2-29. https://doi.org/10.7206/cemj.2658-0845.32 (Original work published 12/2020AD)
Bauer, Kinga and Hospodka, Jan. “Accounting As A Source Of Financial Information On Insolvency In Liquidation Proceedings”. 12/2020AD. Central European Management Journal, vol. 28, no. 4, 2020, pp. 2-29.
Bauer, Kinga and Hospodka, Jan. “Accounting As A Source Of Financial Information On Insolvency In Liquidation Proceedings”. Central European Management Journal, Central European Management Journal, 28, no. 4 (2020): 2-29. doi:10.7206/cemj.2658-0845.32.