Harmonization of Accounting Practices: The Case of Accounting for PPE in Lithuanian Non-Listed Companies
- DOI
- 10.2991/icaat-16.2016.29How to use a DOI?
- Keywords
- Accounting harmonization, accounting policy, property plant and equipment (PPE), non-listed companies
- Abstract
Accounting harmonization is aimed enhance accounting and information disclosure comparability across and within the countries and by decreasing de jure and de facto variations of such practices and disclosures. Non-listed companies comprising more than 90% of all the companies in Lithuania and the EU receive very little attention in accounting harmonization related research - such research primarily address issues related to IFRS adoption in listed companies. This paper is aimed to gather the evidence on the accounting practices of Lithuanian non-listed companies in the area of accounting for PPE and to assess the level of their harmonization. To collect information a survey method has been employed and representative sample of Lithuanian non-listed companies' population had been surveyed. Results of the survey reveal that 89.46% of non-listed companies use cost method to measure PPE after initial recognition; 44.5% - set a minimum recognition value from 500 to 1000 EUR; 88.5% - use the straight-line depreciation method; and 68.2% set a residual value of 1 EUR. In general, the level of harmonization of accounting practices in Lithuanian non-listed companies is above average. Comparability of accounting information across non-listed companies from within-country perspective is not accomplished.
- Copyright
- © 2016, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Renata Legenzova AU - Asta Gaigalienė AU - Inesa Vilkaitė PY - 2016/12 DA - 2016/12 TI - Harmonization of Accounting Practices: The Case of Accounting for PPE in Lithuanian Non-Listed Companies BT - Proceedings of the 5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016) PB - Atlantis Press SP - 285 EP - 296 SN - 2352-5428 UR - https://doi.org/10.2991/icaat-16.2016.29 DO - 10.2991/icaat-16.2016.29 ID - Legenzova2016/12 ER -