The influence of some selected variables from accounting system on profit or loss of agricultural companies in the Slovak republic

Authors

  • Alexandra Ferenczi Vaňová Department of Accounting, Faculty of Economics and Management, Slovak University of Agriculture, Tr. A. Hlinku 2, 949 76 Nitra
  • Renáta Krajčí­rová Department of Accounting, Faculty of Economics and Management, Slovak University of Agriculture, Tr. A. Hlinku 2, 949 76 Nitra
  • Michal Munk Department of Informatics, Faculty of Natural Sciences, Constantine the Philosopher University in Nitra, Tr. A. Hlinku 1, 949 74 Nitra
  • Iveta Košovská Department of Accounting, Faculty of Economics and Management, Slovak University of Agriculture, Tr. A. Hlinku 2, 949 76 Nitra
  • Ivana Váryová Department of Accounting, Faculty of Economics and Management, Slovak University of Agriculture, Tr. A. Hlinku 2, 949 76 Nitra

DOI:

https://doi.org/10.5219/777

Keywords:

variable, accounting, profit or loss, correlation, agricultural company

Abstract

The article presents the influence assessment of significance of some selected variables from the entrepreneurs' accounting system on the achieved profit or loss of the agricultural companies in the Slovak Republic. Accounting information serves as an active tool for internal users for operational as well as strategic company management, and for external users the information is determined as legally binding output information which is a subject to disclosure. Individual financial statements of assessed agricultural companies are considered to be the relevant source of information. Agricultural companies are represented by commercial companies and agricultural cooperatives. Profit or loss after income tax presents the final complex effect of economic company's performance. The existence and development of companies is conditioned by assets which amount and structure depend on focus and the range of subject activity but as well as on specific factors set by the production process in the agricultural primary production. The increase in liabilities is notable by the influence of unsufficient amount of own company funding sources, mainly the increase in trade payables. The continuance of company reproduction process is secured by a bank loan drawdown. The income situation of companies of agricultural primary production is favourably influenced by the subsidies of non-investment character. During the observed period of years 2004 - 2014 the examined variables were assessed by means of statistical methods. The obtained results of rate determination of statistical correlation between selected variables by means of classical canonical analysis and non-parametric correlation analysis secured that in the assessed group of companies all analysed variables influenced statistically significantly profit or loss after income tax, mainly the total value of assets and non-investment subsidies, except for years 2010, 2012 a 2013, when the statistically insignificant correlations was determined between profit or loss and especially short-term trade payables and current bank loans. As regards the existence point of view it is recommended to companies to maintain the optimal assets and capital structure as well as the achievement of suitable profitability of company's activity. Only the complex attitude towards the subject issue can be the assumption of sustainability for companies of agricultural primary production in the Slovak Republic and the increase in their performance.

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Published

2017-05-10

How to Cite

Ferenczi Vaňová, A. ., Krajčí­rová, R. ., Munk, M. ., Košovská, I. ., & Váryová, I. . (2017). The influence of some selected variables from accounting system on profit or loss of agricultural companies in the Slovak republic. Potravinarstvo Slovak Journal of Food Sciences, 11(1), 279–287. https://doi.org/10.5219/777

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