Central European Management Journal

Accounting as a Source of Financial Information on Insolvency in Liquidation Proceedings

Bauer, Kinga Hospodka, Jan

Cracow University of Economics | University of Economics in Prague

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Abstract

Purpose: The purpose of this paper was to indicate which information originating in accounting is important for ensuring the information transparency of bankruptcy proceedings.
Methodology: Based on the literature review and the analysis of international legal acts, we determined priority types of information from accounting used in bankruptcy court proceedings. These types included information on the costs of insolvency proceedings, the assumption in the financial statements that there was no going concern, and the book value of assets. A survey was then conducted on a group of specialists in the field of bankruptcy.
Findings: Respondents indicated information on the costs of bankruptcy proceedings as the most important. However, other accounting information under study also received a high assessment from insolvency specialists. The obtained assessments of individual quality features are characterized by high reliability confirmed by low standard errors.
Research implications: Accounting evolves as a response to the information needs of accounting information users. Therefore, knowing these needs may contribute to changes in the requirements regarding the scope of information from accounting that is used in bankruptcy proceedings.
Originality/value: In-depth knowledge of various aspects of the economic side of the bankruptcy phenomenon is part of the current trend in minimizing the negative effects of bankruptcy.

Metadata

Journal Central European Management Journal 
Volume 28 
Issue 4 
Issue date 12/2020 
Type Article 
Language en
Pagination 2-29
DOI 10.7206/cemj.2658-0845.32
ISSN 2658-0845
eISSN 2658-2430