G30 - Corporate Finance and Governance: GeneralReturn

This paper deals with the issue of current changes in accounting legislation in the context of international harmonization. The ever-increasing process of globalization, development of international co-operation, foreign participation in domestic enterprises, and capital ties lead to the need to harmonize information from financial reporting so that it is internationally comparable. The paper aims to describe changes in the accounting of accounting entities resulting from the amendment of the Czech accounting legislation with effect from 1 January 2016. The new accounting regulation of the Czech legislation enabled the implementation of the European Union legislation, European Directive No. 2013/34/EU in particular, and increased compatibility with IAS/IFRS accounting system, which corresponds with the general efforts to harmonize accounting systems.

The first goal of the submitted contribution is to determine objectified value of the construction enterprises. For a low objectified boundary value is applied Direct Capitalization Method. The main aim of this contribution is using the model of simple linear regression to express value on the appropriate size of equity in the Czech economy in the years 2007-2014. Research sample (N=35) includes medium and large construction enterprises operating in the Czech Republic. The legal form of construction enterprises is Public Limited Company and Private Limited Company. These construction enterprises are valued at eight consecutive years. This resulted in a total of 278 values of construction enterprises. The regression model that includes a total of 278 observations. An integral part of the model of simple linear regression are the assumptions that give the model adequacy. The final regression model can be recommended for expert practice fast, simple, impartial estimate may be used for purposes of business economics. An important part is also a demonstration appropriately selected transformation data series that allows the use of simple linear regression model.