MONITORING CHANGES IMPLEMENTATION OF INTERNATIONAL ACCOUNTING STANDARDS BASED ON THE STATISTICAL METHOD OF PRINCIPAL COMPONENTS

Abstract

Small and medium-sized enterprises constitute a strong potential in the economy of the entire European Union, but also in the Slovak Republic. The significance of these enterprises is not only at the national level, but also reaches a transnational dimension. Small and medium-sized enterprises resist not only various external influences, but also frequent legislative changes. Individual legislative changes can also result in a change in the financial performance of small and medium-sized enterprises. The aim of the paper is to point out the change in results through the method of principal components, which was performed from the input data of ratio indicators, in the event of a mandatory transformation of national accounting standards into international accounting standards. At present, however, small and medium-sized enterprises are not obliged to present financial statements according to international accounting standards, but the progressing time and the Slovak Republic's part in the European Union may also cause the harmonization of financial statements itself.

Keywords

• ratio indicators
• method of principal components
• covariance matrix
• element
• ias/ifrs