SSRN Id3640353

What is the importance of financial reporting from Local GAAP to
IFRS for companies, and how can the accounting treatment

influence this factor within firms’ valuation concept?
Maria Dimitriou*
University of Macedonia, Greece
ABSTRACT
The paper focuses on the accounting treatment under local GAAP and IAS/IFRS and the concepts
of companies that are “implementing IFRS” or those “intending to implement IAS/IFRS” with a
focus on companies in the food & beverages industry: alcohol-free beverage sector in Greece and
worldwide. Financial statements under IFRS are designed to meet the common needs of a wide
range of users. Thus, the need to adopt common rules in the preparation and presentation of
financial statements becomes imperative, as the advantages are many in comparison with the
local GAAP primarily for listed companies and as an alternative for non-listed companies only if
they plan to go list. It highlights future developments and challenges (IFRS for SMEs, New
Greek Accounting Standards) that could impact on accounting in the industry, mainly SMEs, in
the years to come and it puts things in perspective. The results may help to improve the
understanding of IFRS adoption success and quality, focusing on listed companies in the Athens
Stock Exchange. The findings also suggest that assessing the firm’s financial performance
through its financial statements under IFRS is a crucial stage in the financial information used to
generate valuations and stock recommendations.
Keywords: Accounting Treatment, High-Quality Global Standards, Financial Reporting in
Regulated markets, Modern Capital Markets, Food & Beverages Industry, Hellenic Exchanges -
Athens Stock Exchange S.A., Multinational Company, Assessment
JEL- L66, M41, N40
————————————————
* Ph.D. Candidate in Field of Research: Financial Accounting with Information Systems,
Department of Applied Informatics, School of Information Sciences, University of Macedonia, N. Egnatia Str. 156, 54006, Thessaloniki, Greece
E-mail: mdimitriou@uom.gr, mdimitriou@uom.edu.gr, maria.d.dimitriou@gmail.com
Websites: Google Scholar (https://scholar.google.com/citations?user=3eFjw7AAAAAJ&hl=en&authuser=1)
Research Gate (https://www.researchgate.net/profile/Maria_Dimitriou3/publications)
Web of Science (https://publons.com/researcher/3121758/maria-dimitriou/publications/)
page 1 from 35
Electronic copy available at: https://ssrn.com/abstract=3640353

Ποια είναι η σημασία της χρηματοοικονομικής πληροφόρησης από τις Τοπικές
ΓΠΛΑ στα ΔΠΧΠ για τις εταιρείες, και πώς μπορεί η λογιστική αντιμετώπιση
να επηρεάσει αυτόν τον παράγοντα στην έννοια της εταιρικής αποτίμησης;
Μαρία Δημητρίου *
Πανεπιστήμιο Μακεδονίας, Ελλάδα
ΠΕΡΙΛΗΨΗ
Το άρθρο εστιάζει στη λογιστική αντιμετώπιση σύμφωνα με τις τοπικές ΓΠΛΑ και τα ΔΛΠ /
ΔΠΧΠ και τις έννοιες των εταιρειών που «εφαρμόζουν τα Δ.Π.Χ.Π.» ή εκείνες που «προτίθενται
να εφαρμόσουν τα ΔΛΠ / ΔΠΧΠ», με έμφαση στις εταιρείες της βιομηχανίας τροφίμων και
ποτών: τομέας μη αλκοολούχων ποτών στην Ελλάδα και παγκοσμίως. Οι οικονομικές
καταστάσεις σύμφωνα με τα ΔΠΧΠ έχουν σχεδιαστεί για να καλύπτουν τις κοινές ανάγκες ενός
ευρέος φάσματος χρηστών. Συνεπώς, η ανάγκη υιοθέτησης κοινών κανόνων κατά την κατάρτιση
και παρουσίαση των οικονομικών καταστάσεων καθίσταται επιτακτική, καθώς τα
πλεονεκτήματα είναι πολλά σε σύγκριση με τις τοπικές ΓΠΛΑ κυρίως για τις εισηγμένες
εταιρείες και ως εναλλακτική λύση για τις μη εισηγμένες εταιρείες μόνο εάν σκοπεύουν να
εισαχθούν. Επιπλέον, το άρθρο υπογραμμίζει τις μελλοντικές εξελίξεις και προκλήσεις (ΔΠΧΠ
για ΜμΕ, Νέα Ελληνικά Λογιστικά Πρότυπα) που θα μπορούσαν να επηρεάσουν τη λογιστική
της βιομηχανίας, κυρίως των ΜμΕ, τα επόμενα χρόνια και θέτει τα πράγματα σε μια προοπτική.
Τα αποτελέσματα μπορούν να συμβάλουν στη βελτίωση της κατανόησης της επιτυχίας και της
ποιότητας της υιοθέτησης των ΔΠΧΠ, εστιάζοντας στις εισηγμένες εταιρείες στο ΧΑ. Τα
συμπεράσματα υποδεικνύουν επίσης ότι η αξιολόγηση της χρηματοοικονομικής επίδοσης της
επιχείρησης μέσω των οικονομικών της καταστάσεων σύμφωνα με τα ΔΠΧΠ είναι ένα κρίσιμο
στάδιο στις οικονομικές πληροφορίες που χρησιμοποιούνται για τη δημιουργία αποτιμήσεων και
συστάσεων μετοχών.
Λέξεις-κλειδιά: Λογιστική Αντιμετώπιση, Παγκόσμια Πρότυπα Υψηλής Ποιότητας,
Χρηματοοικονομική Πληροφόριση σε Οργανωμένες Αγορές, Σύγχρονες Κεφαλαιαγορές,
Βιομηχανία Τροφίμων και Ποτών, Ελληνικά Χρηματιστήρια - Χρηματιστήριο Αθηνών,
Πολυεθνική Εταιρεία, Αξιολόγηση
JEL — L66, M41, N40.
————————————————
* Υπ. Διδ. στο Πεδίο Έρευνας: Χρηματοοικονομική Λογιστική με Πληροφοριακά Συστήματα,
Τμήμα Εφαρμοσμένης Πληροφορικής, Σχολή Επιστημών Πληροφορίας, Πανεπιστήμιο Μακεδονίας, Εγνατία 156, 546 36, Θεσσαλονίκη, Ελλάδα
E-mail: mdimitriou@uom.gr, mdimitriou@uom.edu.gr, maria.d.dimitriou@gmail.com
Websites: Google Scholar (https://scholar.google.com/citations?user=3eFjw7AAAAAJ&hl=en&authuser=1)
Research Gate (https://www.researchgate.net/profile/Maria_Dimitriou3/publications)
Web of Science (https://publons.com/researcher/3121758/maria-dimitriou/publications/)
page 2 from 35

Introduction
One of the main accounting issues facing any company today is the use of International Financial
Reporting Standards (IFRS). IFRS have substantially contributed to uniformity in financial
reporting on a global scale. After the use of IFRS as a universal financial reporting language for
business affairs and the conversion of accounting standards from local GAAP to IFRS across the
globe, the issue of the firms’ reported performance is raised.
Problem Statement
Thus, the Institutional and Regulatory Framework around the world has changed significantly
during the last decades. Correspondingly, so has the Institutional and Regulatory Framework
influence on and importance to Greece. There is proof that the problem concerns all kinds of
companies, regardless of their size. Law 4308/2014 obliges all companies for the fiscal years to
begin after January 1, 2015, to prepare their financial statements based on the Greek Accounting
Standards, which are remarkably close to the IAS / IFRS. The distinction between them is,
therefore, central to the research project in this paper, as well as, the investigation of the Food and
Beverages Industry within the Hellenic Exchanges - Athens Stock Exchange S.A. (ASE).
Literature Review /Theoretical Framework
The adoption of IFRS undoubtedly constitutes a critical area of interest in accounting theory and
practice internationally. Finance theory and professional practice propose alternative approaches
to the evaluation of a company. In theory, valuation is a relatively simple process of discounting a
firm’s expected cash flows by investors required rates of return. In practice, valuation is overly
complex because there are numerous valuation models and techniques (Rawley and Benton,
2009). The traditional distinction is between valuation based on the fundamentals of the company
(future cash flows, earnings, and so on).
There are areas of research that are currently highlighted: Penman (2001) defines the fundamental
analysis as a five-step process. Schipper (1991) indicates that knowing how analysts use financial
accounting information should make accounting and finance academics more knowledgeable
professors and thus more able to teach future students. According to Damodaran A. (2002),
“Discounted Cash Flow model is the foundation on which all other approaches are built upon.”
Luehrman (1997) states that in the 1970s discounted cash flow analysis emerged as best practice
for valuing corporations. DeFond, M. L., & Hung, M. (2003) investigate the recent trend in
analysts disseminating operating cash flow forecasts. They find that analysts tend to forecast cash
flows for firms were accounting, operating, and financing characteristics suggest that cash flows
are useful in interpreting earnings and assessing firm viability. Mear, R., & Firth, M. (2012)
attempt to test the relevance of accounting and other market related information in a risk
assessment task by a laboratory experiment using the Brunswik lens model framework, estimates
of ex ante risk on thirty stocks were regressed against nine company specific cues and one
industry variable. The results provide substantial evidence that publically available accounting
and financial data convey information relevant for security risk evaluation. Penman, S. H. (1998)
lays out alternative equity valuation models that involve forecasting for finite periods and shows
how they are related to each other. He contrasts dividend discounting models, discounted cash
flow models, and residual income models based on accrual accounting. Empirical accounting
research provides surprisingly little evidence on whether accounting earnings numbers capture
cross‐sectional differences in risk that are associated with cross‐sectional differences in share
prices. Baginsk, S. P., and Wahlen, J. M. (2002) develop an accounting‐fundamentals‐based
measure of the market's pricing of risk the difference between actual share price and a residual
income valuation model estimate of share value using risk‐free rates of return. Their results show
that both systematic risk and total volatility in residual return on equity partially explain this
page 3 from 35

pricing differential. Moreover, the explanatory power of total volatility is incremental to the Fama
and French (1992) factors market beta, firm size, and the market‐to‐book ratio.
The many changes in the current world, such as the global adoption of IFRS (with its
opportunities, threats, weaknesses, and risks), give a new philosophical perspective for what is
happening and what is going to happen in the future, and the benefits it can provide as a means of
knowledge for students and as an important aid to researchers.
In the very near future, there is a strong possibility that Greek GAAP, as they are known today,
will cease to exist. Their place will take the New Greek Accounting Standards. Indeed, the
adoption of Law 4308/2014 (November 2014) obliges all companies for the fiscal years
beginning after January 1, 2015, to prepare their financial statements based on the Greek
Accounting Standards, which are very close to the International Accounting Standards /
International Financial Reporting Standards (IAS / IFRS).
Importance of the Research
This paper provides a theoretical framework and perspective for the valuation problem,
demonstrating conditions for its accounting treatment and defining its computational complexity
for a broader class of companies. The paper also presents the perspective on the following issues
related to the theme and the arguments supporting the author’s position.
• Introduction to Accounting Treatment
• Conditions for one single set of High-Quality Global Standards
• Computational Complexity of Financial Reporting in Greece
• Financial Reporting in Regulated markets
• Modern Capital Markets
• Food & Beverages Industry in Hellenic Exchanges Athens Stock Exchange S.A.
• Assessing a Multinational Company in the Beverage Sector in Greece and Worldwide
Purpose/Objectives of the Research
We envision to be understood the cases of accounting frameworks, rules, principles, and
standards of a research nature analyzing the global adoption of IFRS (benefits and prospects)
aiming at emphasizing their philosophical basis and value via in-depth narrative methodology
approach with questions. The paper aims to contribute to further exploration and reflection on the
issue in order to explain some of the different elements and dimensions of financial reporting in
the modern capital markets.
Research Questions
Regarding this purpose, the main question formulated as the title of the paper:
What is the importance of financial reporting from Local GAAP to IFRS for companies, and how
can the accounting treatment influence this factor within firms’ valuation concept?
The paper focuses on the food & beverages industry: Alcohol-free Beverage Sector in Greece and
worldwide.
In order to give a sufficient answer to the research question, we examined the following
questions:
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1. Why of interest? How did IAS/IFRS develop within the financial markets? What about the
development of IFRS in Greece? What are those characteristics for financial information to be
useful in decision making?
2. What is IFRS, compared to Greek GAAP? What new elements introduced in the Greek
reality? How can the impact of accounting treatment from Greek GAAP to IFRS be
measured?
3. Which are the advantages and challenges of the implementation of IFRS? Is Greek GAAP still
the most used accounting model, or are there other models gaining more and more popularity?
4. What is the Food and Beverages Industry in the Greek and International Area? How can be
Food and Beverages Industry represented in Hellenic Exchanges - Athens Stock Exchange
S.A. (ASE)? Are companies (large or remarkable SMEs) in the sector “implementing IFRS”
or are those “intending to implement IFRS”? Can ASE contribute to business investing with
funds?
5. How can we assess a firm’s financial performance and decision making within firms’
valuation concepts through its financial statements under IFRS in Greece and worldwide?
Contribution
In this way, we sought to explore the issue of the accounting treatment in Greece in conjunction
with the business environment and applicable accounting rules, principles, and standards that
have changed significantly.
Our contribution is a theoretical framework for the accounting treatment of the valuation problem
in the way companies present their business and the way decision-makers judge their financial
statements.
Other contributions are a valuation model that results in more from the collection, evaluation, and
processing of information according to IFRS than was possible with existing Greek GAAP.
Methodology
The methodological steps to answer every question include, firstly, a theoretical and historical
background by literature and research. The IFRS presence, their characteristics in Greek reality,
their impact on the financial statements under Greek GAAP, and the investigation of the most
important differences between them were used from a narrative way with questions in the context
of IFRS’s adoption worldwide. Secondly, the paper includes an investigation of the main related
issues for Food & Beverages Sector without geographical constraints but also, in alternative
forms of financing.
This approach involves assessment of a company’s financial performance and decision making
within firms’ valuation concept through its cash flow statements under IFRS focusing on listed
companies in the Athens Stock Exchange, specifically, the case of Coca Cola Hellenic Bottling
Company, including real reported corporate data, producing results from this evaluation in the
context of valuation.
Specifically, we give particular emphasis on the statement of cash flows and the usefulness of this
in assessing a firm’s reported performance for adjusting the firm’s ability to generate and grow
earnings and cash flow. Besides, we use tools and techniques which facilitate the assessment of
the firm’s financial and operational data. Concerning that, we adjust the phase of the firm’s life
cycle but also the amounts associated with the statement of cash flows by creating common size
analysis from it and calculating the free cash flow as well as ratios.
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Major Findings
Following the approach and structure explained before, the paper will succeed to find what are
the IFRS, what new elements do they introduce to Greek reality, what does this mean in practice,
what is the difference between IAS and IFRS, what is the specificity /diversity of IAS/IFRS
compared to Greek GAAP /New Greek Accounting Standards, and the main differences in the
preparation of the financial statements under the Greek Accounting Standards and the
International Financial Reporting Standards.
Besides, the paper will succeed to find the modern capital markets, an overview of the Food and
Beverages Industry in Hellenic Exchanges - Athens Stock Exchange S.A., the Investment and
financing choices in ASE with indexes and funds.
One Single Set of High-Quality Global Standards
In Greece, until 1995, there was no systematic attempt to impose an external audit of the financial
statements of large private companies. The law 3329/55 introduced in Greek company law the
SOL: Body of Chartered Accountants. It is interesting to note that the nature and organizational
structure of SOL were proposed to the Greek government by British auditors. Since then, the
disclosure requirements for shareholders and the comparability of accounts led to the idea of
applying IFRS.
Ten years ago, IFRS was unknown in the business world of Greece. IFRS, as IAS is now
established and known, was initially instituted in 2001. Their design was completed in 2002 with
the EU Directive 1606/2002 for their implementation until 1/1/2005 in the consolidated
statements of all listed companies (including banks and insurance companies) of its Member
States (publishing interim, half-yearly and annual consolidated financial statements). On
20/3/2002, Greece adopted the regulation (Law 2992 / 2002) according to the Directive of the EU
and similarly to the other EU Member States.
All the listed companies and, in some cases, the non-listed companies in these countries are
required to prepare and publish their financial statements under IFRS. The implementation of
IFRS is mandatory from 1 January 2005 and is followed by listed companies on European stock
markets, including listed companies in regulated markets in Greece such as the Athens Stock
Exchange, the Athens Derivatives Market, the Electronic Secondary Securities Market.
In order to enhance the extroversion of Greek companies and to provide more detailed corporate
information to investors, the Greek General Chart of Accounts (GGCA) and the Company Law
(mainly the Law 2190/1920) are fully harmonized with the Accounting Directives of EU.
The Accounting Standardization and Audit Committee (ELTE) and the Accounting
Standardization Council (SLOT), in close cooperation with the Securities and Exchange
Commission, offer their services, aiming at the more accurate application of IAS/IFRS in Greece.
The ELTE (Accounting Standardization and Audit Committee) implements the Auditing
Accountancy Law. It was established by the Law 3148/2003 (as amended by the Law
4170/2013). Its responsibilities are: to propose to the Minister of Economic, issues of Accounting
Standardization and Auditing, International Auditing Standards, General Accounting Plan,
Sectoral Accounting Plans, and International Accounting Standards, as well as their alignment
with European Union law and international standards.
The SLOT (Accounting Standardization Council) issues opinions on accounting standardization
issues, such as a) The preparation, revision or modification of the GGCA (Greek General Chart of
Accounts), to adapt them to developments in science and practice, b) The manner, timing, and
process of general or gradual mandatory application of International Accounting Standards by
page 6 from 35

economic units or classes of them, c) The publication of directives on the implementation of the
GGCA and the International Accounting Standards.
Table 1. The Greek General Chart of Accounts
GREEK GENERAL CHART OF ACCOUNTS
BALANCE SHEET ACCOUNTS
ACCOUNTS OF ASSETS ACCOUNTS OF LIABILITIES

Shareholders' Equity
Intangible Assets Inventories Receivables – Provisions – Current Liabilities
Long-Term Liabilities
GROUP 1 GROUP 2 GROUP 3 GROUP 4 GROUP 5
10. Land 20. Merchandise 30. Trade debtors 40. Share Capital 50. Suppliers
11. Buildings and 21. Finished and 31. Cheques receivable 41. Revaluation 51. Cheques payable
technical works semi-finished products Reserves-Investment
Grants
12. Machinery, 22. By-products and 32. Overseas orders 42. Reserves 52. Bank loans
technical installations, residues
and other mechanical
equipment
13. Transportation 23. Work in process 33. Sundry debtors 43. Amounts intended for 53. Sundry creditors
equipment (etc products being capital increase
processed)
14. Furniture and 24. Raw and auxiliary 34. Securities 44. Provisions 54. Taxes-duties
fixtures materials-consumables-
spare parts and packing
items
15. Payments on 25. Expendable 35. Cheques overdue 45. Long-term debt 55. Social security
account and tangible Materials
assets in course of
construction
16. Investments held as 26. Spare parts for fixed 36. Prepayments and 46. ………… 56. Suspense
fixed assets assets Accrued Income liabilities
17. Other intangible 27. …………… 37. ……… 47. ………… 57. ……………
assets
18. Participating 28. Types of packaging 38. Cash and cash 48. Accounts linked with 58. Dividends
interests in affiliated equivalents branches payable
undertakings
19. fixed assets of 29. Inventories of 39. Requirements and 49. Predictions for 59. Short-term
branches or other branches or other Receivables of branches long-term obligations of obligations of
centers centers or other centers branches or other centers branches or other
centers
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Table 2. The Greek General Chart of Accounts is continued
GREEK GENERAL CHART OF ACCOUNTS
ACCOUNTS OF OPERATING Analytical

Accounting Operating Memo. Accounts
(accounts at destination)
Operating Expenses Operating Income Accounts Results
GROUP 6 GROUP 7 GROUP 8 GROUP 9 GROUP 10

60. FEES and costs of 70. Sales 80. General holding 90. Medians accounts 00. ……………
personnel
61. Fees and expenses of 71. Sales of finished and 81. Extraordinary and 91. Reclassification costs 01. Alternative
third unfinished products non-operating results –purchases and revenues assets
62. Third party services 72. Sales of other stocks 82. Prior years’ 92. Cost centers 02. Guarantees and
and scrap material Revenues and expenses real securities
63. Taxes-Duties 73. Sales services 83. Forecasts for 93. Cost of production 03. Bilateral
(revenue services) extraordinary risks agreements
64. Miscellaneous 74. Grants and various 84. Revenue from 94. Inventories 04. Another Debit
expenditure sales revenue previous years ' forecasts Memo. Accounts
65. Interest expense and 75. Income of incidental 85. Depreciation of fixed 95. Deviations from 05. Beneficiaries of
similar charges occupations assets not included in standard costs asset items
operating cost
66. Depreciation of assets 76. Interest and similar 86. Profit and loss 96. Revenues - mixed 06. Other Credit
income account analytical results Memo. Accounts
67. Distribution costs 77. ………………. 87. …………….. 97. Differences in 07. Bilateral
acceptance and allocation agreements
68. Provisions 78. Self-generation of 88. Results for disposal 98. Analytical Results 08. Accounts of
fixed assets and used receivable
operating forecasts information
69. Organic expenses by 79. Organic revenues by 89. Balance sheet 99. Internal links 09. Memo.
type of branches or other type of branches or other Accounts of branches
centers centers or other centers
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Computational complexity of financial reporting in Greece
Perhaps the first International Accounting Standards (IAS) in the world were the standards for the
next International Financial Reporting Standards (IFRS), as they were the only standards that
began and operated in 1973-2001 with sharp criticisms. Thus, International Accounting Standards
(IAS) have been enriched with instructions that change the original accounting policy and are
now known as International Financial Reporting Standards (IFRS) (as they were renamed the
International Accounting Standards (IAS) in April 2001). Thus, the financial statements are
prepared under a controlled framework of rules and principles.
The IASC issued the first International Accounting Standard (IAS): International Accounting
Standards Committee Foundation, which was established in June 1973 and is based in London
(United Kingdom). This Foundation was responsible for the development of IASs and their
promotion but was replaced by the IASB: International Accounting Standards Board in 2001,
which issued the IFRS.
At the same time, there was the SAC: Standards Advisory Council to advise the IASB on the
development of standards and information on their impact. Today, the IASB plays the above role.
The IASB seeks to understand the IAS so that it can be applied effectively on a global basis. The
IAS is continually revised, taking into account the current situation. Many of these standards were
replaced by the new IFRS or withdrawn. Besides, the IASB aims to develop and publish IFRS,
including the recent IFRS for SMEs (SMEs), published in July 2009.
The International Accounting Standards Board (IASB) takes into account the accounting
standards already adopted, the IAS and the IFRS as well as the draft reporting in each issue, and
creates IFRS for worldwide acceptance, trying to harmonize as much as possible methods of
different countries. These differences are due to a variety of social, economic, and legal
conditions and to the fact that each country takes into account the needs of its resident users when
it adopts national provisions.
The standards that are not fully understood by the application have been analyzed with notes and
instructions created explicitly by the IASB interpretive body, called IFRIC: International
Financial Reporting International Committee (since November 2001), or the previous SIC:
Standing Interpretations Committee (1996) in consultation and contact with all operational levels
in various organizations. This committee is competent to review and resolve specific accounting
issues arising from the current IFRS and to provide guidance on these issues. In other words, the
committee issues interpretations called IFRIC’s interpretations, and before 2001 they were called
SIC’s interpretations. Any IFRIC interpretation should then be approved by the IASB
(International Accounting Standards Board).
Today, there is a series of 1-41 International Accounting Standards (IAS), of which only 28 are
active on 1.1.2015, and 1-15 International Financial Reporting Standards (IFRS) with a series of
Interpretations for accounting. While three IFRS (IFRS 9, IFRS 14 and IFRS 15) issued to
replace the respective IAS and their interpretations are not yet in force until 1.1.2015.
The IAS and IFRS refer to the purpose, the definitions used, the accounting treatment, the
disclosures used, and the effective date. SIC’s interpretations and IFRIC’s interpretations are very
important for verifying the correct application of IAS and IFRS and for avoiding the use of
"creative accounting" methods. This reference is necessary in order to highlight the philosophy
and logic of the underlying IFRS and, indeed, global trends to implement IFRS.
Both the International Accounting Standards (IAS) and International Financial Reporting
Standards (IFRS) are the same standards that set rules or accounting treatments for various
individual elements or financial statements. IAS are standards issued before 2001, and IFRS are
page 9 from 35

the standards issued after 2001. There were 41 standards called IAS 1, IAS 2, and others.
However, several of them were replaced by IFRS or withdrawn.
The SIC: Standing Interpretations Committee and the Interpretations come from the IFRIC:
International Financial Reporting Integrations Committee. Interpretations of SIC and IFRIC are
interpretations that complement the IAS/IFRS. The SICs was issued before 2001, and IFRICs
were issued after 2001. They deal with more specific situations that are not covered by each
international accounting or financial reporting standard itself or issues that have emerged since
the publication of specific IFRS.
The IFRS fully covers all the principles and rules that, as far as possible, aim at
• fairly displaying various elements, transactions, or statements in the financial statements
of companies worldwide,
• providing information to internal (such as management, directors) and external users in
decision making (such as shareholders, prospective investors, analysts, investors,
financial institutions, lenders, creditors, suppliers, public authorities, employees, and
other users).
At the same time, they promote transparency and comparability between the individual sizes of
businesses. Thus, they help to inform the markets and stakeholders better and more fully. The
IFRS is an alternative way of compiling the financial statements and the principles that govern
them. The financial statements (under IAS 1) include:
a. the Statement of Financial Position
b. the Statement of Comprehensive Income
c. the Statement of Cash Flows
d. the Statement of Changes in Equity
e. the Notes
The pursuit of an integrated and credible adoption and application of the IFRS, in other words,
the new global acceptable accounting framework for the preparation and presentation of corporate
financial information, is a selection of central interest in assessing entities around the world, for
example:
• Investors who appreciate the entity's ability to pay dividends and, hence, the likely return
they will achieve in their investment.
• Employees who appreciate the ability of an entity to provide benefits to them.
• Debt generators who assess the level of security for the amounts borrowed by the entity.
• Suppliers appreciate the probability that an entity will be able to pay for them.
• Customers appreciate if an entity will continue to exist. This is especially important when
customers have a long-term engagement or depend on an entity, for example, when there
are product guarantees or where special parts are needed.
• State institutions evaluate the overall allocation of resources and, therefore, the activities
of the agencies. Besides, information is required to determine future tax policy and to
provide national statistics.
All the financial decisions should be based on an assessment of an entity's capacity to generate
cash, timetable, and the certainty of its creation. Information on the entity's financial position
(balance sheet), performance (from the income statement), and changes in its financial position
(from the cash flow statement) provides information to support such decisions.
page 10 from 35

The characteristics of this information are known as qualitative features. The IFRS Framework,
as amended in September 2010, describes two types of qualitative features for useful financial
information: fundamental and improved qualitative features.
The IFRS are structured to produce financial statements with relevance and faithful
representation. The information must be relevant and faithful to be useful. The conceptual
framework identifies comparability, verification, timeliness, and understanding as qualitative
features that enhance the usefulness of information that is relevant and faithful. The inclusion of
improved quality features should be maximized as far as possible but not necessary. Instead, it is
essential that the information presented meets the fundamental characteristics of affinity and
faithful representation, as improved quality features alone cannot make the information useful if
this information is irrelevant or not accurately represented. Therefore, IFRS contributes to no
small extent to reliable and consistent information, responding to users and their information
needs.
Let us take it from the beginning: IFRS are the initial ones for International Financial Reporting
Standards. Their title reveals their stigma and identity. Their position as a "global language of
financial reporting for business issues around the world" has given them an additional burden, at
the same time, additional demand from the business world and directly or indirectly stakeholders
in the valuation of entities.
The IAS/IFRS is based on the Anglo-Saxon accounting model, while the accounting system in
most European countries, including Greece, is based on the French and German models
(described in detail in Λουκάς Λ., Βλάχος Χ., 2007). Anglo-Saxon accounting model is based on
"finance", and the correct application of IAS/IFRS requires the understanding and application of
various economic theories and models (more specifically Λουκάς Λ., Βλάχος Χ., 2007).
The term "international" defines its global identity internationally. It is found in contradiction to
the "Greek" standards, which have a local basis, as defined by the Greek General Chart of
Accounts (as defined by Presidential Decree 1123/1980). The Greek General Chart of Accounts is
based on the Franco-German General Chart of Accounts of 19711971 (more specifically in
Γρηγοράκου Θ. Γ., 2008), the Code of Company Law (the provisions of articles 42a and 43c of
Codified Law 2190/1920 referred to " Society Anonymous"), the Capital Market Commission
and the Tax Laws (more specifically in Νεγκάκης Χ., 2012).
The Generally Accepted Accounting Principles (GAAP) is a term that has emerged over the last
decades and concerns "all accounting regulations" from wherever they come from, e.g.,
regulations deriving from:
a. local (national) corporate law
b. national and international accounting standards
c. requirements of local (national) stock exchanges and capital markets.
The term GAAP may or may not have legal force or legal definition, depending on the country in
which it is used, e.g., in Great Britain has no legal force, while in the United States, it has. The
term GAAP is a dynamic term that continually changes as circumstances change due to new laws,
standards, and practices.
For the term "Financial Information" it means providing financial information about an entity to
external users that helps them make financial decisions and evaluate the performance of an entity.
Typically, this information is available annually, semi-annually, or quarterly and is presented in
forms adopted or approved by governments and other regulators in each local jurisdiction.
Sometimes, the term is translated into Greek as "information," as "reference," as "presentation"
and sometimes as "report" (more detailed in Λουκάς Λ., Βλάχος Χ., 2007).
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In other words, the term increases their usefulness in providing information to a range of users
(eg shareholders, institutional investors, creditors, and other users) through the financial
statements of entities that are prepared on the basis of accounting principles, methods,
regulations, and policies of IFRS when making the appropriate financial decisions.
Financial reporting in regulated markets
The Concept Framework for Financial Reporting sets out the fundamental principles for IFRS
amended in September 2010. It includes the objectives of the financial statements, the underlying
assumptions used in the IFRS, the qualitative characteristics of the financial statements, the
financial statements, recognition of financial statements, statements and concepts of capital and
maintenance. At the same time, through this framework, IFRS promotes transparency and
comparability between different business sizes (the full text of the framework can be found at
www.ifrs.org). This framework will help to better and better inform the capital markets and
stakeholders.
In Greece, the regulatory framework of accounting is the sole responsibility of the Greek state.
Accounting legislation in Greece stems from the:
1. Greek General Chart of Accounts and the corresponding Branches, which is the
responsibility of the Ministry of National Economy.
2. Codified Law 2190/1920 (on Societies Anonymous), which is the responsibility of the
Deputy Minister of Commerce.
3. Opinions of the National Accounting Council, accepted by the Minister of National
Economy.
4. Tax Law, which is the responsibility of the Minister of Economics.
The European Union published in 2009 specific SME standards, IFRS for SMEs, recognizing the
importance of Small and Medium Enterprises, another change in the business environment,
taxation, and accounting that will require programming and focus from the affected companies in
the global economy.
Thus, IFRS is not just a case of some multinational companies, but SMEs. The assessment of the
harmonized financial statements under IFRS will help to draw definite conclusions about the
overall financial situation of SMEs in order to make appropriate investment decisions from
internal and external investors as well as from financial institutions with direct beneficial
consequences mainly on the financing of small and medium-sized businesses for their
development and growth.
For companies that are not required to comply with IAS/IFRS, Greek Accounting Standards,
which are a simplified version of IFRS, have been introduced by Law 4308/2014 and contain the
following:
• Chart of accounts
• Defining concepts
• Types of entities subject to different obligations set by the Greek Accounting Standards,
according to criteria: the average number of employees, total assets, and net turnover.
• Accounting records (Accounting data: transaction and event documents, Accounting
books) and how to keep them
• Prepared financial statements by business category
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Main differences in the preparation of the financial statements under the Greek
Accounting Standards and the International Financial Reporting Standards
The following tables present some of the main differences between the GAS (Greek Accounting
Standards) and the IFRS: a) on prepared financial statements /consolidated financial statements,
and b) in different accounting treatment of certain cases and events (balance sheet items, Income
Statement, and Profit Distribution Table) (described in detail in Αληφάντης Γ. Στ., 2015 and
Κοντός Γεώργιος Κ.Α., 2015).
Table 3. The main differences between the Greek Accounting Standards and the International
Financial Reporting standards on prepared financial statements
THE MAIN DIFFERENCES ON PREPARED FINANCIAL STATEMENTS
Greek Accounting Standards International Financial Reporting Standards
Profit • The disposal table is prepared as a separate • There is no disposal table.
Distribution part of the Financial Statements. • The corresponding information is partly derived
Table • There is no obligation to compile the results from the Statement of Income and partly from the
table on a consolidated level. Statement of Changes in Equity.
• The parent is required to prepare a consolidated
Statement of Changes in Equity.
Statement of • There is no Statement of Income. • The results are more concise and result in the
Income after-tax result transferred to equity.
Table of • No corresponding table is produced. • It is mandatory.
Changes in • It is partially subtracted from the Profit • It shows the changes in Equity during the Use
Equity Disposal Table. (Increase of Capital, Grants, Adjustments) and at the
end of Use through the distribution of the Results.
Statement of • It is compiled only by the listed companies in • Shall be prepared on an individual and consolidated
cash flow ATHEX. basis.
Balance sheet • The balance sheet is provided. • It provides a much more concise Balance sheet.
Appendix • It is quite concise. • Notes to the financial statements are replacing the
• Its content is determined by C.L. 2190/20. Appendix to the GAS.
• It provides extensive analysis and information on
the financial data in order to fill in the gaps that the
Balance Sheet and the Income Statement.
• They are the most important element of the
financial statements.
Consolidation • They are presented in Assets and are • The amortization of the difference should not
differences amortized in accordance with the provisions of exceed 20 years, and the amortization time horizon is
the Tax Legislation, deducted from Equity. reassessed at the end of each use.
Table 4. The main differences between the Greek Accounting Standards and the International
Financial Reporting standards in different accounting treatment of certain cases and events
(balance sheet items, income statement, and profit distribution table)
THE MAIN DIFFERENCES IN A DIFFERENT ACCOUNTING TREATMENT OF CERTAIN CASES AND
EVENTS (BALANCE SHEET ITEMS, INCOME STATEMENT, AND PROFIT DISTRIBUTION TABLE)
Greek Accounting Standards International Financial Reporting Standards
Inventories • Two valuation methods were applied: FIFO • They are valued at the lower of cost and net
and LIFO and weighted average cost (WAC). realizable value (IAS2).
Note that the use of LIFO is not allowed.
Multiannual • Specific expenses are recognized in the • The designation of expenses as multiannual
Depreciation balance sheet rather than in the income amortization is permitted under strict conditions, the
expense statement and are amortized either directly or observation of which is reviewed each time financial
within five years. statements are prepared.
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Taxes • Income tax, non-embedded taxes on operating • The tax is considered an expense and is presented in
costs, and tax audit differences are shown in the the Income Statement.
Disposable Income Statement. • A deferred tax liability or asset is calculated.
• No deferred tax is calculated.
Deferred taxes • There were no deferred income taxes. • If there is a difference between the tax and the IAS
• Each time the direct taxes payable was statements, deferred taxes should be recognized.
considered.
Tangible • The readjustment of the property value, as • The enterprise uses values to adjust the value of its
Assets well as the depreciation rates of the fixed assets, property (alternative method) and depreciates its
are imposed by the Tax Legislation. assets based on their estimated useful lives.
• Depreciation was determined by tax law or as • The useful life of the fixed assets is determined by
a percentage or within two percentages. the management and communicated through Notes.
• Adjustments in the value of fixed assets were • The annual depreciation is lower than that of the
made every four years for land and buildings GAS, but of course, it lasts longer.
only, based on statutory rates. • All asset adjustments can be made annually based
• The difference in the revaluation of the fixed on a valuation report from a professional valuer.
assets was transferred to equity and then • The revaluation difference, if positive, is transferred
obligatorily capitalized. to a reserve. If negative, it is offset by a previous
• There was a distinction between "in" and reserve if it exists or to the extent that it exists, and
"out" exploitation, which was practically the difference is transferred to the results.
non-discriminatory. • Fixed assets are classified as "Operating" and
"Investing".
• Investments are defined as those assets that are not
used for the main subject of the company or are
leased to third parties.
• Investment assets must be valued annually, and
valuation differences, positive or negative, are
transferred directly to the results.
• The revaluation difference is transferred to
operating assets in reserve, while for the investment
in the results.
Intangible • Certain costs, which would presumably • These cannot be capitalized with IAS.
fixed assets generate inflows over a long period of time, • In use, the results are burdened.
could be capitalized. • The cost of acquiring immovable assets should be
• The most common was "installation costs" added to the total cost of the acquired asset and
and "reorganization costs". amortized on the basis of the amortization rate.
• It leads to a reduction in results when such • Interest is also potentially added to the cost of the
costs are incurred and does not allow for undue asset and can be depreciated at amortized cost.
accumulation. • The depreciation of fixed assets takes place over a
• A series of intangible assets (permits, rights, period much longer than that of the fixed costs.
etc.) were characterized as "intangible assets". • Fixed assets as intangible assets have to meet
specific criteria, which are re-examined in each use.
Interest on • They appear in the category "Installation • Basic method: Impact of results.
Construction costs" in the Balance Sheet and are depreciated • Alternative Method: Incorporation in the cost of
Period Loans within five years. acquisition of fixed assets and depreciation based on
the useful life of the asset.
Government • They are presented in Equity and are • They appear either in a transitional account as Next
grants depreciated in proportion to the amortization of Year Income (basic method) or deducted from the
the asset to which they relate. acquisition cost of the asset (alternative method).
Asset Grants • Grants were transferred to equity and • Subsidies are transferred to passive liabilities and
amortized, as well as corresponding fixed are depreciated for each user according to the fixed
assets, to the benefit of inorganic revenues. asset.
Extraordinary • There are many categories of expenditure and • This item only records the results of truly
Results revenue that fall under the category of exceptional events (earthquakes, fires, etc.).
extraordinary results.
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Leasing • Fixed assets under finance leases were not • The Leasing is treated as long-term debt.
shown in the balance sheet. • By acquiring the fixed assets, the assets are charged
with their value and a long-term liability is credited
to Leasing.
• From rents, the portion of interest payable does not
burden the results but reduces the liability.
• Fixed assets are amortized, and their value is
readjusted as for other assets.
• Every year the use is also charged with the interest
and the expense of the "long-term" loan, which is
now considered Leasing.
Sale and • When Sale and Leaseback were made at a • This difference is not considered again but is
Leaseback value much higher than the net book value of transferred to a transitional liability account and is
the assets, the resulting difference was a profit "amortized" during the Leasing contract.
(total or a significant portion) and improved the
results.
Participations • When buying a non-listed company, it is • The valuation was made to the smallest price by
recorded in the books at its cost. species, between acquisition and current.
• The valuation was made to the smallest price by
species, between acquisition and current.
• The positive difference is usually transferred to a
reserve. The negative is offset by a reserve if it exists
or transferred to the results.
• Valuation is made on the day of purchase at current
prices of all sub-items of the purchased item, and the
proportion that corresponds to it is also recorded cost
of acquisition in account 18.
• The difference between debit or credit is considered
to be "goodwill"
• If goodwill is debt, it remains in the balance sheet
and is not depreciated.
• If it is a credit, it is transferred to profit or loss in
the period in which the purchase was made.
• At the end of each year, the total valuation of the
participants must be made.
• If it is greater than the acquisition cost (account 18)
plus goodwill, no recording is made.
• If lower, the amount of goodwill is reduced
accordingly.
Securities • They were mimicked by the smallest item by a • The trading book is valued at current prices and the
value between the acquisition and the current differences are transferred to the results.
value.
Long-term • They were displayed at their cost, even if they • If they contain interest, they must be discounted to
receivables or included interest. present values based on their expected flows.
liabilities
Construction • Normally, the revenue invoiced, and the cost • The total profitability of the project is calculated.
projects of the invoiced revenue was considered as • The realized portion is accounted for as revenue and
revenue. as a cost the proportion of total cost in this section
based on the total budget of the project.
Activity • The information provided at this level was in • Extensive information should be provided in Notes.
Breakdown the Appendix and rudimentary. • For each activity area, but also for each
geographical area of activity.
Errors and • If significant revenues or expenses were • These amounts of errors do not affect the results of
Changes incurred in respect of previous years and the financial year, but the prior years' financial
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therefore related to errors, when compiling the statements are adjusted, and the previous comparable
financial statements then these amounts were use is restated.
shown in the non-organic results.
Provisions for • Provisions were made for staff • They attach great weight to these obligations, the
staff reimbursements based on a percentage of the provisions for compensation.
total eligible compensation. • They are calculated by an actuary and forecasts are
to be made on the basis of an actuarial study and for
any other obligation to the staff.
Affiliated • Significant importance is attached to transactions
parties with "affiliated parties".
• The concept of "affiliated parties" is very broad. •
The information is difficult to obtain at the group
level, but this information is important due to the
events that have happened to groups here and
internationally.
Distribution • Income tax was recorded in distribution, tax • These amounts are regarded as expenses and are
audit differences and the remuneration of the recognized in the income statement.
Board of directors’ members, were presented in • Dividends are shown in equity until the General
the distribution after the results before tax. Meeting decides. their distribution and, once it has
• Dividends on the Board of directors' proposal, been decided, is transferred to the obligations.
before deciding on the general counsel, • The total amount transferred to equity is presented
appeared in the distribution and liabilities. in the income statement.
• There were several reserves in the distribution
provided by commercial or tax law.
Discontinued • This concept did not exist. • When it is decided to discontinue operation, all its
activities assets are derecognized at liquidation prices and are
shown by a number, in assets, liabilities, equity, and
results.
• Similar is the practice of fixed assets that are
decided to be divested.
Equity • Net equity was mainly affected by the • There are many cases where direct equity bills
distribution of results, capital increases or move without affecting the results.
decreases and, in very few cases, other causes
(grants, real estate revaluation).
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The Modern Capital Markets
The modern capital markets have become truly global in their scale and scope (Chisholm A. M.,
2002). Although New York is the biggest financial centre in the world by many measures, some
of the developments that led to today’s international marketplace for money originated in
London. The table below reflects the currently valid classification of markets. As we can see,
Athens Stock Exchange is in an emerging market.
Table 5. The currently valid classification of markets Source: MSCI Global Market Accessibility
Review, 2019
Note:
1
The MSCI Standalone Market Indexes are not included in the MSCI Emerging Markets Index or MSCI
Frontier Markets Index. However, these indexes use either the Emerging Markets or the Frontier Markets'
methodological criteria concerning size and liquidity.
2
The West African Economic and Monetary Union (WAEMU) consists of the following countries: Benin,
Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, and Togo. Currently, the MSCI WAEMU
Indexes include securities classified in Senegal, Ivory Coast, and Burkina Faso.
Hellenic Exchanges - Athens Stock Exchange S.A. (ATHEX – ASE)
Greek Food and Beverages Industry has great potential and the bright perspectives based on the
high availability of quality raw materials. It produces a large number of businesses that are
involved in the development, production, and processing of agricultural products and their
distribution around the world. At the Athens Exchange (ATHEX), they are convinced about the
above, and wishes to help local agricultural producers to enter foreign markets, to improve the
promotion of quality products and to enable them to find partners and investors in order to
develop their strategy, achieve business synergies and fund their expansion efficiently.
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At the beginning of this effort - among other things – they created a microsite aiming to inform
about the main subsectors of the Greek Food and Beverages Industry, the companies operating
therein and their products, as well as other relevant issues of interest. At the same time, they are
in the process of further improving the legislative, regulatory, and tax environment in Greece, for
the benefit of listed funds at ATHEX. Through the operation of such funds, much-needed capital
will flow to listed and non-listed companies, and talented and experienced people will get access
to the right international partners to grow their businesses.
An overview of the Food & Beverages Industry in ATHEX
Greek food and agriculture have traditionally been one of the major export sectors for Greece,
with a strong presence in the European and a growing presence in the US food markets and
several companies with strong export growth. From olive oil to flour products, honey to
processed meats, and ready meals, greek companies have leveraged the competitive advantages
offered by greek primary production. They competitively enter and remain in global markets,
making food and agriculture one of the most dynamic and high-growth sectors in greek
manufacturing.
Greek companies have managed to innovate and differentiate themselves both in terms of the
product and packaging. Over the past ten years, there are several examples of companies in the
food sector. They have achieved significant market shares abroad by leveraging the combination
of traditional greek ingredients and innovative marketing and packaging.
Over the next years, the food & agriculture sector in Greece is expected to be a significant
contributor to GDP growth and value-added, driven by several key market trends and competitive
advantages:
a. The recent shiﬅ towards organic, natural ingredients in the Greek agriculture sector which
are highly regarded and can command a higher premium and value-added
b. The prevalence of the Mediterranean Diet, as a premier paradigm of healthy, natural
eating across the world
c. The key drivers of health, ethics, physical fitness, and pleasure that affect consumer
preferences in developed economies
d. The increased drive for self-sufficiency and food safety
e. The potential for clusters of innovation and R&D in several specialized Greek food
supply chains, combining EU funding, the work of research and academic institutes and
the interest of industrial champions in the application of new technologies
There are remarkable opportunities for long term investment in the food and beverage processing
sector in Greece. At ATHEX, both through the Main Market and the Alternative Market (E.NA),
they provide a secure and transparent environment for foreign investors.
The Food and Beverages Industry is represented on ASE. Nineteenth companies of the food &
beverage sector and twelve related companies to the agriculture sector (plastics, logistics and so
forth) comprises of the Main Market, representing 23% of the middle capitalization for 2012.
Two companies of the food & beverage sector and three related companies to the agriculture
sector (plastics, logistics and so forth) on the Alternative Market, representing 7% of the average
caps for 2012. It is true that, at the moment, some of them are under suspension.
In the next table, we can see the listed firms of the Food & Drink Sector in ASE.
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Table 6. The listed companies of Food & Drink Sector on Hellenic Exchanges - Athens Stock
Exchange S.A. (ASE) Source: Hellenic Exchanges - Athens Stock Exchange S.A. (ASE, 2015)
MAIN MARKET
Name Symbol Sector/ Subsector
1 COCA-COLA HBC AG EEE Food & Beverage/Soft Drinks
2 KARAMOLENGOS BAKERY INDUSTRY S.A. KMOL Food & Beverage/Food Products
3 GALAXIDI FISH FARMING S.A. GMF Food & Beverage/Farming & Fishing
4 EVROFARMA SA EVROF Food & Beverage/Food Products
5 SELONDA AQUACULTURE S.A. SELO Food & Beverage/Farming & Fishing
6 KRETA FARM SA CRETA Food & Beverage/Food Products
7 KRI-KRI SA KRI Food & Beverage/Food Products
8 KTIMA KOSTAS LAZARIDIS S.A. KTILA Food & Beverage/Distillers & Vintners
9 FLOUR MILLS C. SARANTOPOULOS S.A. KYSA Food & Beverage/Food Products
10 LOULIS MILLS S.A. KYLO Food & Beverage/Food Products
11 CHATZIKRANIOTIS & SONS MILLS S.A. HKRAN Food & Beverage/Food Products
12 FLOUR MILLS KEPENOS S.A. KEPEN Food & Beverage/Food Products
13 ELGEKA S.A. ELGEK Food & Beverage/Food Products
14 HELLENIC SUGAR INDUSTRY S.A. HSI Food & Beverage/Food Products
15 STELIOS KANAKIS SA KANAK Food & Beverage/Food Products
ALTERNATIVE MARKET
Name Symbol Sector/ Subsector
16 MEDITERRA S.A. MSHOP Retail / Food Retailers & Wholesalers
17 KRITON ARTOS S.A. KRITON Food & Beverage/Food Products
The Main Market of the Athens Exchange is suitable for medium and large companies wishing to
raise capital from several investors. On the other hand, the Alternative Market of the Athens
Exchange is appropriate for small businesses wishing to raise capital from a small number of
investors (e.g. fewer than 150 persons) or funding business plans and extensions/exports in
compliance with the EU directives (π.χ. MiFID), with less stringent obligations/compliance costs
for the company.
Coca-Cola Hellenic in the Athens Stock Market was the largest listed company by value
Our focus firm in this paper is Coca-Cola Hellenic Bottling Company S.A. It is one of the leading
players in the sparkling category in the east and west Europe but also in West Africa. Coca-Cola
Hellenic is the second-largest bottler of products of The Coca-Cola Company in terms of volume.
Its unique portfolio of world-leading brands mixes of geographies (operations across 28
countries) and market execution capabilities make Coca-Cola Hellenic a leader in the alcohol-free
beverage industry.
Coca-Cola Hellenic
Website: https://coca-colahellenic.com/
Bloomberg code: EEEGA
Reuters code: EEEr.AT
ISIN code: CH019 825 13 05
Company Profile
Coca-Cola Hellenic Bottling Company S.A. is one of the largest bottlers of The Coca-Cola
Company. Hellenic Bottling Company S.A. was incorporated under the laws of Greece in 1969,
with headquarters in Athens. The Coca-Cola Company granted the company its bottling rights in
the country in 1969. In August 2000, Hellenic Bottling Company S.A. acquired Coca-Cola
Beverages Ltd, the former European operations of Coca-Cola Amatil, and formed Coca-Cola
Hellenic Bottling Company S.A.
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In October 2012, the company announced that it was moving its operational headquarters to
Switzerland and would switch its main market listing to London. This was a significant blow to
the Athens stock market, as Coca-Cola Hellenic was its largest listed company by value. Reasons
for the move included better access to financing and a move away from crisis-ridden Greece,
which had prompted rating agencies to downgrade its credit over the summer to three notches
above "junk" level.
On 29 April 2013, Coca-Cola HBC AG (“CCHBC AG”), the new Swiss holding company, was
admitted to the London Stock Exchange’s main market. On 11 September 2013, Coca-Cola HBC
AG announced its inclusion into the FTSE 100 and FTSE All-Share indices. Coca-Cola HBC was
named the industry leader among beverage companies in the 2014 Dow Jones Sustainability
Index. On 24 July 2014, Coca-Cola HBC AG announced the delisting of its American depositary
receipts (ADRs) from the New York Stock Exchange, the termination of its ADR program, and
the deregistration and termination of its reporting obligations under the U.S. Securities Exchange
Act of 1934.
Exports
Coca-Cola HBC operates in 28 countries in 3 continents; its well-established markets include
Greece, Cyprus, Ireland, Austria, Switzerland and Italy, its developing markets include Poland,
the Baltic States, Czech Republic, Slovenia, Slovakia, Hungary, and Croatia. Its emerging
markets include Russia, Bosnia and Herzegovina, Ukraine, Belarus, Romania, Montenegro,
Armenia, Moldova, FYROM, Bulgaria, Serbia, Kosovo, and Nigeria
Group Structure Coca-Cola HBC SA
Kar-Tess Holding (a Luxembourg company) 23.3%
The Coca-Cola Company 23.2%
free float of which about two-thirds are held by 53.5%
UK and US institutional investors
Table 8. Coca-Cola HBC’s Performance using excel
Financial Overview
(consolidated) (in € 000)
2010 2011 2012 2013 2014
Sales 6,761.6 6,824.3 7,044.7 6,874.0 6,510.2
Gross profit 2,718.9 2,569.6 2,5.22.5 2,435.5 2,317.7
EBIT 634.0 450.3 337.7 373.7 361.1
EBITDA 651,3 468,4 359,7 434,9 395,6
Earnings before tax 568.5 364.5 258.6 294.1 352.0
Earnings after tax 430.7 265.7 193.4 221.2 294.2
E.P.S. 1.16 0.73 1.16 0.61 0.81
Total equity 7,250.1 7,243.5 7,185.0 7,274.8 6,879.0
ROE 2.42 2.49 2.44 2.46 2.47
The next tables and figures show steadily increasing revenue by the listed Food & Drink sector
during the period 2009-2011. Equity has, on average, increased from 2009. Despite the increase
in turnover, EBITDA has decreased during the period 2009-2011 but remains positive.
In the next tables and figures, we can see some financial highlights by the listed Food & Drink
sector.
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Table 7. Financial Highlights by the listed Food & Drink sector. Source: a study of McKinsey
(Hellenic Echanges Group, Porfiris Nikos, 2012)
Main Market ENA Market
2009 2010 2011 2009 2010 2011
Turnover (in thousands € - .000) 8.977.803 8.338.319 8.474.388 11.310 9.623 11.086
Total Equity (in thousand € - .000) 3.464.601 3.912.883 3.630.063 8.872 7.892 7.806
EBITDA (in thousand € - .000) 1.114.869 1.135.866 919.459 839 -247 722
Figure 1. Financial Highlights by the listed Food & Drink sector. Source: a study of McKinsey
(Hellenic Echanges Group, Porfiris Nikos, 2012)
The Investment and financing choices in ASE
The relationship between traditional and alternatives investments in decision making has attracted
considerable attention in Europe’s Markets. Little focus, however, has been directed towards the
decisions about different forms of financing enterprises concerning the type of funds and indexes
in Greece. This study, therefore, explored the companies on the Greek food & beverage sector
about the kind of funds and indexes that cover the Greek and foreign markets, focusing on the
Athens Hellenic Exchanges (ATHEX)-Athens Stock Exchange S.A. (ASE).
1. ASE contribution to Business investing with indexes
Athens Exchange, in cooperation with the most valid international index providers, calculates and
disseminates worldwide over 30 indices, either in a real-time or on an end of day basis. In this
way, market participants, professionals or not, have at their disposal a reliable benchmark for
their investment decisions but also a useful tool for the creation, through licensing, of financial
products such as Futures, Options, ETFs, and Structured Products. The range of indices that is
covered is vast, and it includes standard as well as sector indices, total return indices, and partner
indices that cover apart from the Greek other foreign markets also.
ASE suggests investing in SMEs with two indexes: FTSE/ASE International Engagement Plus
and FTSE/ASE Mid & Small Cap. The next figure shows 28 of the 30 companies in the FTSE
Index/ ASE Plus International Activities that have positive results in 2012, Performance + 53.7%.
In the next figures, we can see the indexes used.
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Figure 2. The 28 of the 30 companies in the FTSE Index/ ASE Plus International Activities that
have positive results Source: a study of McKinsey (Hellenic Echanges Group, Porfiris Nikos,
2012)
The next figure shows 17 out of the 20 companies in the index have positive effects in 2012 Index
FTSE/XA Mid Small Cap & Fundamental Sizes 2012, Performance + 38.9%.
Figure 3. The 17 out of the 20 companies in the index have positive effects in the 2012 Index
FTSE/XA Mid Small Cap & Fundamental Sizes. Source: a study of McKinsey (Hellenic Echanges
Group, Porfiris Nikos, 2012)
The inclusion of even medium-capitalization companies in the ASE indexes can be benefited. The
total import costs (as% of funds raised) in the Greek market is attractive compared with other
alternatives. Such companies can be considered small for more extensive exchanges; however,
they can attract investment interest in ASE via indexes.
The medium and large companies in the primary market of the ASE were significantly related to
several investors raising their capital more than the small businesses in the alternative market of
the ASE. The small businesses were not significantly related to investors raising their capital or
funding their business plans and extensions or exports in compliance with the EU directives (e.g.
the Markets in Financial Instruments Directive or MiFID)
Although, the large companies were found to be significantly less raise of their capital than the
small and medium-sized entities (SMEs), which have less stringent obligations/compliance costs
in the alternative market of the Athens Exchange.
2. ASE contribution to Business investing with funds
Lastly, ASE proposes an innovative alternative to the Funds that invest in unlisted companies
where enhanced transparency and access by experts/institutional and non-qualified investors.
• Real Estate Investment Trusts (REITs). Funds for the acquisition and management of the
real estate. Works in an advantageous tax regime in financing and investment level.
Ongoing changes in the Legislation in order to become even more competitive compared
with those of the EU.
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• Closed-Ended Investment Funds. Funds for investment in listed shares, cash, derivatives,
and financial instruments. Works in advantage tax regime at the level of funding and
investment — ongoing changes in the Legislation in order to increase their ability to
invest in unlisted companies.
• Venture Capital Companies. Funds for investment management in Greek unlisted
companies. Works in an advantageous tax regime in financing and investment level —
ongoing changes in the legislation to ensure that the Funds be entered on ASE.
• Venture Capital Trusts. Funds without legal personality for investment in Greek
non-listed companies. These are fiscally transparent, and investors are taxed on their
income under the relevant tax bracket — ongoing changes in the legislation to ensure that
the Funds be entered on ASE.
With the alternative of funds, ASE provides ongoing support to the issuer in each stage of the
process. Contribute actively to the cost of a Public Offering. It gives procurement at successful
contractors, depending on the capitalization of the public offering, as an incentive to the
contractor.
The funding in the main market of the Athens Exchange has comparative advantages for large
companies. While the funding in the Alternative Market of the Athens Exchange is a flexible and
easy way to raise capital while achieving an objective evaluation of the company. Further, import
and subsistence costs are extremely low.
Then, companies have benefited from increased visibility and outreach to customers, business
partners, and suppliers, gaining experience in capital markets (IAS/IFRS, financial reports,
transparency), the exit strategy for venture capitals or strategic investors, preparation for
transition to the main market.
BlackRock recommends the World Agriculture Fund for retail investors, which according to the
BlackRock, can benefit in the long-term upward trend in food prices, as rising prosperity in
China, India, and Brazil make significant dietary changes. There is considerable interest in the
Mediterranean diet in Greece. What is more, the industry has been identified as of great strategic
importance for Greece, according to a study of McKinsey (Hellenic Echanges Group, Porfiris
Nikos, 2012).
Assessing a Multinational Company
in the Beverage Sector in Greece and Worldwide
Coca-Cola Hellenic reports under International Financial Reporting Standards (IFRS) translated
to Euro at the exchange rate. Bellow, the cash flow statement already has integrated all
information. For an effective storyline and well-supported conclusions and recommendations are
generally enhanced by using five years of data as well as appropriate to the purpose of the paper.
In this stage, we examine and assess a multinational firm’s financial statements. The following
table shows the computation of the total net cash flow for Coca-Cola Hellenic Bottling Company
S.A., respectively, from 2009 to 2013 (All numbers in thousands €) for assessing the firm’s
ability to generate sufficient cash to pay for operating expenses, capital improvements, and
currently maturing obligations.
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Table 9. Cash and cash equivalents using excel (2009-2013)
Consolidated Cash Flow Statement
Period Ending Dec 31, Dec 31, Dec 31, Dec 31, Dec 31,
All numbers in thousands € 2009 2010 2011 2012 2013
Operating activities
Net cash from operating activities 997,2 987,9 845,7 751,3 784,9
Investing activities
Net cash used in investing activities -342,9 -365,5 -336,4 -403,7 -330,8
Financing activities
Net cash used in financing activities -1143,3 -527,7 -353,3 -358,5 -154,6
Net increase / (decrease) in cash and cash
equivalents -489 94,7 156 -10,9 299,5
Movement in cash and cash equivalents
Cash and cash equivalents at 1 January 724,6 232 326,1 447,4 439,1
Net increase / (decrease) in cash and cash equivalents -489 94,7 156 -8,6 299,5
Effect of changes in exchange rates -3,6 -0,6 1,6 0,9 -4,1
Effect of consolidation of CCHBC — — — — 1,8
Hyperinflation impact on cash — — -7,6 -0,6 1,2
Cash and cash equivalents at 31 December 232 326,1 476,1 439,1 737,5
We begin by entering on the spreadsheet the annual cash for each account on the comparative
statement of cash flows. The total net cash flow is the sum of cash flows that are classified into
three areas: Operational cash flows, Investment cash flows, and financing cash flows. The
changes columns will be used later to explain the increase or decrease in each account balance.
At a glance at the above table, the (total) net cash flow of Coca-Cola Hellenic over the period
from 2009 to 2013 increases (more cash becomes available). It is a fact that the change in cash
balance in the year 2009 and 2011 decreases the cash balance. However, it does not affect the
(total) net cash flow of Coca-Cola Hellenic in the above years. Coca-Cola Hellenic generates
large amounts of cash because of its strong market positions in 28 countries with different levels
of growth, margin, and risk.
Coca-Cola Hellenic’s pattern of positive cash flows from operating activities, and negative cash
flows from investing and financing activities year after year indicates that is a healthy firm that
generates sufficient operating cash flows to fund day-to-day activities, some investment in
expansion, and settlement of the debt. These are the characteristics of a mature, successful, and
moderately growing firm.
We can see from this analysis that Coca-Cola Hellenic can generate consistently strong positive
cash flows from operations (the only source of cash and cash equivalents is from Coca-Cola
Hellenic’s operating activities). This cash is directed to purchase new assets and repayment of
long-term obligations, repurchase of own shares, and payment of dividends.
Further on, information about the specific components of historical cash flows by category of
activities is useful, in conjunction with other information, in assessing the firm’s ability to
generate cash flows in the future.
To achieve this, we analyze sources (proceeds) and uses (payments) of cash flows from each
category of activities. The related historic data from 2009 to 2014 were extracted from Coca-Cola
Hellenic’s annual reports (see Coca-Cola Hellenic’s annual report 2010 until 2014) on a
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spreadsheet needed to assess cash flows (see the following tables). Here is the statement of cash
flows prepared using the direct method.
Table 10. Net cash from operating activities using excel (2009-2013)
Operating activities
Profit after tax 421,6 434,9 272,8 193,4 221,2
Total finance costs, net 72,8 75,7 94,1 90,7 91,5
Share of results of equity method investments 1,9 -2,5 -1,2 -11,6 -11,9
Tax charged to the income statement 142,5 136,9 102,7 65,2 72,9
Depreciation of property, plant, and equipment 360,7 387,8 374,7 375,3 355,8
Impairment of property, plant, and equipment — — 21 33 19,3
Employee stock options 6,4 6,7 8,1 6,3 6,3
Amortisation of intangible assets 4,7 7,1 3,2 3 1
Other items 8,7 — 1,3 2,3 —
1019,3 1046,6 876,7 755,3 756,1
(Gains) / Losses on disposals of non-current assets 10,5 13,2 2,7 6,9 -13,6
Decrease / (increase) in inventories 39,1 -41,4 15,9 -10,4 6,4
Decrease / (increase) in trade and other receivables 30,1 -24 -3,8 67,2 95,2
(Decrease) / increase in trade and other payables -12,5 134,5 43,8 27,3 -3,1
Tax paid -89,3 -141 -89,6 -95 -56,1
Net cash from operating activities 997,2 987,9 845,7 751,3 784,9
To start with, the above table of cash flows from operating activities, analyzing its components,
indicates that the cash from operating activities is consistently higher than the net income. The
firm's net income or earnings (profit after tax) are said to be of "high quality".
This relationship still holds as for a mature firm like Coca Cola Hellenic, would expect operating
cash flow to exceed net profits, because profits from the income statement include non-cash flows
(e.g. depreciation of fixed assets and/ or intangible assets). The figure below illustrates the
relationship between net profit and operating cash flows.
Figure 4. Net Profit and Operating Cash Flows using excel (2009-2013)
Afterward, the following table shows the analysis of cash flows arising from investing activities,
respectively, from 2009 to 2013.
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Table 11. Net cash used in investing activities using excel (2009-2013)

Investing activities
Payments for purchases of property, plant, and equipment -384,4 -392 -370,8 -395,5 -380,2
Proceeds from sales of property, plant, and equipment 18,2 12 10,9 5 24,5
Net receipts from/(payments for) investments -4,7 7,2 3 -21,1 15,2
Interest received 10,5 7,3 9,9 7,9 9,7
Net receipts from disposal of subsidiary — — 13,1 — —
Net payments for acquisition of joint arrangement 17,5 — -2,5 — —
Net cash used in investing activities -342,9 -365,5 -336,4 -403,7 -330,8
The above table indicates that the firm invests in growth (e.g. through the expansion of facilities
or acquisitions).
Lastly, as cash flows from financing activities are concerned, the following table shows the
analysis of these cash flows, respectively, from 2009 to 2014.
Table 12. Net cash used in financing activities using excel (2009-2013)

Financing activities
Return of capital to shareholders -546,3 — -181,5 -123,4 —
Payments of expenses related to the share capital
increase -6 — -6 — —
Payments for buy-out of non-controlling interest of
Coca-Cola Hellenic — 33 — — —
Bottling Company SA -16,6 -42,3 — — -1
Payment for purchase of own shares — — — — -1,6
Purchase of shares held by non-controlling interests — -3,7 -114 -13,9 -18,1
Proceeds from shares issued to employees exercising
stock options 1,8 5,7 4,7 0,1 16,4
Dividends paid to owners of the parent -102,3 -102 — — -123,7
Dividends paid to non-controlling interests -5,3 -7 -6,5 -1 -4,5
Proceeds from external borrowings 1199,8 927,1 1494,8 1088,2 1596,7
Repayments of external borrowings -1508 -1191 -1387,6 -1186,2 -1488,6
Principal repayments of finance lease obligations -85,3 -75,2 -48,1 -21,8 -16,5
Interest paid -75,1 -72,3 -109,1 -100,5 -113,7
Net cash used in financing activities -1143,3 -527,7 -353,3 -358,5 -154,6
The above table indicates that the firm can increase its dividend, buy back some of its stock,
reduce debt, or acquire another firm. All of these are perceived to be suitable for stockholder
value.
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However, the level of cash flow is not necessarily a good measure of performance, and vice
versa: high levels of cash flow do not necessarily mean high, or even any profit and high levels of
profit do not automatically translate into high or even positive cash flow. It may additionally be
necessary to use tools and techniques which facilitate the assessment of the firm’s financial and
operational data.
Concerning that, we adjust the phase of the firm’s life cycle but also the amounts associated with
the statement of cash flows by creating common size analysis from it and calculating the free cash
flow as well as the ratios suggested by IAS7.
Concerning its position in the industry, Coca-Cola Hellenic is located in the phase of maturity in
its life cycle, as the 45 year’s activities in the industry and the wider environment.
The balance of Coca-Cola Hellenic’s geographical market allows us to: minimize external facing
of its long-term growth and limit its exposure to the effects of potential economic or political
instability in some of the Group territories.
Coca-Cola Hellenic’s main growth drivers are both cost leadership - being the lowest cost
producer while offering products comparable to those of other companies so that products can be
priced at or near the industry average, and differentiation - offering unique products or services
that are widely valued by buyers so that the firm can command premium prices.
From the above mentioned, the firm is located in a solid position (stable financial position 10
thousand € in 2013) and is expected to dominate a dominant position. Coca-Cola Hellenic is a
mature, successful, and moderately growing firm. The Group ensures future cash generation.
Figure 5. Finance Income using excel (2009-2013)
The creating common-size analysis of cash flow statement for Coca-Cola Hellenic, prepared by
computing each category of cash flow statement as a percentage of the total cash and cash
equivalents on 31 December in five periods, from 2009 to 2013. Table 13 shows the impact on
performance, highlights the net increase, or decrease in percentage terms of cash and cash
equivalents.
Table 13. The Common Size Analysis of CCH's Cash Flow Statement using excel (2009-2013)
Period Ending
Dec 31, Dec 31, Dec 31, Dec 31, Dec 31,
All numbers in % of total Cash and cash equivalents
2009 2010 2011 2012 2013
at 31 December
Net cash from operating activities 430 303 178 171 106
Net cash used in investing activities -148 -112 -71 -92 -45
Net cash used in financing activities -493 -162 -74 -82 -21
Net increase / (decrease) in Cash and cash equivalents -211 29 33 -2 41
Cash and cash equivalents at 1 January 312 71 68 102 60
Cash and cash equivalents at 31 December 100 100 100 100 100
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Based on Table 13 of the Common Size Analysis of CCH's Cash Flow Statement, it is obvious
the increase almost every year from 2010 to 2014 as well as the decrease in cash balance in the
year 2009 and 2011, -211% and -2% respectively. This amount is a key indicator of the extent to
which the operations of the firm have generated sufficient cash flows to repay loans, maintain the
operating capability of the firm, pay dividends and make new investments without recourse to
external sources of financing. However, it does not affect the (total) net cash flow of Coca-Cola
Hellenic in the above years.
Now, Free Cash Flows to the Firm and Free Cash Flows to Equity can be calculated from 2009 to
2013 for Coca Cola Hellenic from its cash flow statement. The following table shows the
computation of FCFF using CFO.
Table 14. The computation (using excel) of FCFF using CFO (2009-2013)
Free Cash Flow

FCCF = CFO + Int (1-Tax rate) – FCInv
CFO = net cash flow from operating activities 997,2 987,9 845,7 751,3 784,9
Less: FCInv = Investment in fixed capital 384,4 392,0 370,8 395,5 380,2
Plus: Int (1-Tax rate) = The financial expenses after taxes
have been paid 56,3 54,2 81,8 75,4 85,3
Free Cash flow to Firm (FCFF) 669,1 650,1 556,7 431,2 490,0
Based on our FCFF computing, we see positive FCFF. This fact indicates that the firm has cash
left after expenses. As FCFE is concerned, the following table illustrates the calculation of FCFE
using CFO.
Table 15. The computation (using excel) of FCFE using CFO (2009-2013)
Cash and cash equivalents at 31 December 232 326,1 476,1 439,1 737,5
Free Cash Flow

FCFE = FCFF − Int(1 − Tax rate) + Net borrowing
FCFF =Free cash flow to the firm 669,1 650,1 556,7 431,2 490,0
Less: Int (1-Tax rate) = The financial expenses after 56,3 54,2 81,8 75,4 85,3
taxes have been paid
Plus: Net borrowing 1508,0 1191,0 1387,6 1186,2 1488,6
Free Cash flow to Equity (FCFE) 2120,8 1786,9 1862,5 1542,0 1893,3
Positive FCCE indicates that the firm has a cash surplus that is available for future investment
and loan repayments.
Using liquidity and flexibility ratios from Coca-Cola Hellenic’s cash flow statement, we result in
the following assessment:
Coca Cola Hellenic’s Quality of Earnings from 2009 to 2013 is high. Dividing Profit before tax
(221,2 thousand € in 2013) by the net cash from operating activities (784,9 thousand € in 2013)
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gives Quality of Earnings ratio 3,55 (221,2€/784,9€) in 2013. The above indicates that Coca-Cola
Hellenic is an excellent firm with cash liquidity.
In addition to this, its Dividend and interest coverage ratio is high, 3,24 (784,9€/241,9€) in 2013,
which indicates its flexibility for new investments, pay loans and dividends except for the period
2011-2012. Financial flexibility, as captured above, indicates that the firm is very well placed to
avoid damage to the firm’s long-term health as well as to leverage the opportunities ahead.
Figure 6. Quality of Earnings ratio using excel (2009-2013)
Figure 7. Dividend and interest coverage ratio using excel (2009-2013)
Conclusions
To conclude then, we have seen the purpose of the paper. We, also, discussed the background and
the methodology of the paper: the theoretical and historical background (providing by literature),
IFRS presence, and their characteristics in Greek reality, their impact on the financial statements
under Greek GAAP, and the investigation of the most important differences between them, were
used from a narrative way with questions. And, finally, the examples of the paper provided the
applied research in comparing the accounting frameworks that evaluate a broader class of
companies, to shed light on common points in the way in which their financial statements are
prepared, and their data is treated in them, including their philosophical basis and value.
Practical implications
Thus, the results can help improve understanding of the success and quality of IFRS adoption,
together with the expected and the perceived, by focusing on listed companies in the ATHEX.
Investors will more readily participate in markets that are perceived to be efficient and fair.
Promoting market efficiency and investor confidence are key strategies in the development of
active and liquid financial markets, which in turn, facilitate investment, employment, and wealth
creation.Results reveal that funds and indexes are used diversely in alternative investment
decisions; it can be used at different levels, settings, and with a variety of tasks.
The results also shed light on investment practices and how investment decision-makers interact
with market participants, develop investment skills and competencies, and build community in
the Athens Exchange. The findings also indicate that assessing an entity's financial performance
through its financial statements under IFRSs is a crucial step in the use of financial information to
produce valuations and stock recommendations.
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Originality / Value
I think you will agree then that the paper contributes to the current literature (theoretical,
methodological, or conceptual) on the success, quality, and benefits of IFRS adoption by
discussing the problems or challenges that organizations (private or public) face in the Food and
Beverages Industry. It correlates them with the broader field and provides useful insights to
professionals from similar organizations and contexts. It is not limited to the analysis of terms
and concepts. However, it also presents specific techniques and methods for applying them to a
listed company, a better understanding of the benefits offered by an example.
Future research directions
Overall, findings suggest that there is a significant relationship between financial reporting and
investment decision-making, with SMEs widely considered to be an opportunity for the sector
even in the recession period. Although the study focuses on the factors affecting IFRSs for SMEs
and the new Greek accounting standards, it could not address the differences between IFRSs and
IFRSs for SMEs or IFRSs for SMEs and the new Greek accounting standards, given that ongoing
flow of changes in accounting standards is expected in the coming months and years. It could be
the future extension of the study. This paper aims to contribute to further investigation and
reflection on the subject in order to explore the reasons, whether, how, and why somebody should
invest in funds and indexes.
page 30 from 35

ACKNOWLEDGMENT
This research was published, presented, and discussed at the 27th Annual Conference of the
Multinational Finance Society. It is a postprint. It is also an upgrade version of a paper reviewed
at the Multinational Finance Journal or relevant papers published, presented, and discussed from
04/2014 to 10/2018 and their postprints up to 12/2019. The planning and presentation of the
Ph.D. Thesis supervised by 3-faculty member advisory committee with four annually and five
more quarterly progress reports. The participation with research papers to scientific conferences
was supported by the University of Macedonia’s Unit of Special Account for Research
Funds-ELKE followed the decision of the Faculty Assembly (including the supervisor’s
signature). The implementation of the Ph.D. thesis or relevant research papers was supported by
the State Scholarships Foundation-IKY (seventeen months). The University of Macedonia’s
Departments (Accounting and Finance, and Applied Informatics) and Library, during master and
doctoral program, provided the support that was related workshops, seminars, or lectures by their
staff. The Publishing House Diplografia provided the support that was the books on financial
accounting, consolidated financial statements, and end-of-year accounting tasks according to the
Greek Accounting Standards. The European Financial Management Association, the
Multinational Finance Society, and the Hellenic Finance and Accounting Association provided
the support that was Tutorial Sessions, Panel Sessions “Improving Research in Accounting and
Finance”, Keynote Speeches, and Discussion Sessions at their Conferences. Participants at the
conferences of the Multinational Finance Society (professor Pedro Martinez-Solano - University
of Murcia, Spain, assoc. professor Chima Mbagwu - Wilfrid Laurier University, Canada, assoc.
professor Ozge Uygur - Rowan University, USA, professor Laurence Booth - University of
Toronto, Canada, professor Mine Aksu - Sabanci University, Turkey, Ph.D. cand. Grace Essien -
University of Leeds, United Kingdom, assoc. professor Krzysztof Jackowicz - Kozminski
University, Poland, professor Callen Jeffrey - University of Toronto, Canada, professor
Theodoros Sougiannis - University of Illinois, USA, professor Martikainen Minna - Hanken
School of Economics, Finland, lecturer Anestis Ladas - University of Macedonia, Greece), at the
conferences of the Hellenic Finance and Accounting Association (professor Georgios
Papanastasopoulos – University of Piraeus, Greece, professor Vasilis Filios - University of Patras,
Greece, lecturer Athanasios Tsagkanos - University of Patras, Greece), and at an international
conference (professor Christos Negakis - University of Macedonia, Greece who indicated the
attendance of the Conference entitled "13th HFAA" with special panel sessions: "Improving
research in finance and accounting"), provided the written reports or oral discussions on the
author’s previous research papers. Reviewers in the Multinational Finance Journal (professor
Theodossiou P. - Editor-in-Chief and the Referees) provided the written reports on the author’s
previous version of this paper.
page 31 from 35

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What is the importance of financial reporting from Local GAAP to

IFRS for companies, and how can the accounting treatment

JEL- L66, M41, N40

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BALANCE SHEET ACCOUNTS

ACCOUNTS OF ASSETS ACCOUNTS OF LIABILITIES

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GREEK GENERAL CHART OF ACCOUNTS

ACCOUNTS OF OPERATING Analytical

GROUP 6 GROUP 7 GROUP 8 GROUP 9 GROUP 10

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Hellenic Exchanges - Athens Stock Exchange S.A. (ATHEX – ASE)

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Table 8. Coca-Cola HBC’s Performance using excel

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The Investment and financing choices in ASE

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Consolidated Cash Flow Statement

Consolidated Cash Flow Statement

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Free Cash Flow

Free Cash Flow

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Figure 6. Quality of Earnings ratio using excel (2009-2013)

Figure 7. Dividend and interest coverage ratio using excel (2009-2013)

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Αληφάντης, Γ. Στ. (2015). Χρηματοοικονομική Λογιστική. Αθήνα: Εκδόσεις Διπλογραφία.

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