Utility of the financial statements in Slovakia - data from 2019 and 2020

Abstract

In Slovakia, all companies must disclose their financial statements in the public database of financial statements. Financial statements are prepared according to precise rules and in a prescribed structure. We examine utility from data published in companies' financial statements for 2019 and 2020 when they were affected by the COVID-19 pandemic. Utility represented by satisfaction is a subjective quantity. In this article, we examine the utility of financial statements based on the quality and usability of the data disclosed in the financial statements to the users of the financial statements. We examine the quality of financial statements by counting and evaluating the number of abnormal values of financial indicators calculated for individual financial statements from the examined sample of financial statements. According to the OECD, in 2020, 99,6 % of companies in Slovakia were from the SME segment. In this research, we have shown that a significant number of companies show abnormal values of selected financial indicators, which creates space for further research of the reasons and possible solutions.