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4th International Thematic Monograph - Modern Management Tools and Economy of Tourism Sector in Present Era

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GAMBLING REVENUES AND TAXES  IN THE FINANCIAL STATEMENTS OF EUROPEAN COMPANIES

Eva Karai
Eötvös Loránd University, Hungary, 1053 Budapest, Egyetem tér 1-3

Maria Lakatos
Eötvös Loránd University, Hungary, 1053 Budapest, Egyetem tér 1-3

Judit Nagy
Budapest University of Technology and Economics, Hungary, 1111 Budapest, Műegyetem rkp.

Janos Erdei
Budapest University of Technology and Economics, Hungary, 1111 Budapest, Műegyetem rkp.

DOI:   ​​https://doi.org/10.31410/tmt.2019.63
​
4th International Thematic Monograph -   Modern Management Tools and Economy of Tourism Sector in Present Era, Belgrade, 2019,   Published by:  Association of Economists and Managers of the Balkans in cooperation with the Faculty of Tourism and Hospitality, Ohrid, North Macedonia;   ISSN 2683-5673,  ISBN 978-86-80194-29-5;   Editors:   Vuk Bevanda, associate professor, Faculty of Social Sciences, Belgrade, Serbia;   Snežana Štetić, full time professor, The College of Tourism, Belgrade, Serbia,   Printed by:  SKRIPTA International, Belgrade

Abstract: Not only the operating system but the accounting method is strongly regulated in gambling
companies. The accounting and tax regulations that differ by countries influence the accounting practices
and so the financial statements of the companies. Revenues are one of the main indicators of the financial
performance of an entity. We studied the presentation form and content of European gambling revenues
using the presented financial statements of gambling companies between 2004 and 2013. We examined
whether the divergent recognition and measurement methods led to a material impact on the comparability
of the financial statements. Our results show that the potentially high gambling tax rate and its
different accounting practice can hamper the decision making of users of these financial statements and
the reliability of revenue-based indicators both on company and industry level. If specific interpretation
or guidance for the gambling sector existed, financial statements provided enhanced information.

Keywords: Gambling Revenue, Gambling Tax, Comparability of Financial Statements.

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