Harmonisation of Financial Statements in terms of Financial Analysis and especially Return on Assets[Harmonizace účetního výkaznictví z pohledu finanční analýzy se zaměřením na výnosnost]

The paper describes the importance of return on investment in financial decision making and in the process of harmonisation of accounting. Shareholders, managers, current and potential investors are interested in satisfactory return on investment together with adequate financial situation that will enable to achieve lasting development of the enterprise. Optimum compromise between financial stability and return on investment depends on specific conditions under which the enterprise performs. The paper demonstrates that bigger emphasis is rightly put on return on investment in comparison with other indicators of effectiveness. Calculations of return on investment are necessary in most long-term decisions with consequences over a period of years. This ratio plays also an important role in management of intracompany segments that were given substantial authority and responsibility. At the end of the paper the most common ratios of return on investment are stated together with the main areas of use. It is stressed that return on investment must be always considered against the risk as the second factor influencing financial decision making.