International Financial Reporting Standards as a tool for Earnings management

Research background: The idea of harmonizing accounting at the international level gradually began to spread from second half 20th century as a result globalization and growth trade. Due expansion this business, users financial statements have need for comparability transparency. National legislation was so different that reliable assessment companies national backgrounds not possible. intention create uniform, globally applicable standards. Purpose article: This paper clarifies theoretical background selected standards can significantly expand scope earnings management. Methods: Basic scientific methods analysis, synthesis, induction, deduction abstraction were used meet stated goal. Findings & Value added: correct application IFRS increases discretionary practices. change in reporting valuation according domestic may, varying degrees, affect picture position well achieved profit company.