REFLECTING THE BUSINESS MODEL IN FINANCIAL STATEMENTS

Abstract

The purpose of the research underlying this article is to present the necessity of reflecting the business model in the financial statements. For this purpose, a systematic review related to the issue was conducted. Also acomparative example and an empirical studywere applied. The empirical study wasbased on the financial statements of airlines representing different business models. Based on the review of relevant literature, it was concluded that reflecting the business model in financial statements would be a desirable improvement from their current form. The example and the empirical study demonstrate the impact of the business model on financial statements. They confirm that the current best way of reflecting business models in financial statements is the adoption of specific, legally compliant solutions (appropriate accounting policies). The study is one of the few existing publications fully discussing the importance of business models in financial statements