Case Study of Investment Opportunities and Decision Making on Food and Drink Firms Listed on ASE Under IFRS

Abstract

Firms have been enabled to prepare IFRS financial statements that allow them to adopt a global financial reporting language as well as to be evaluated in a global marketplace. The paper investigates a sector that has a major role in the European economy as well as in Greece. This paper aims at outlining a picture of events and trends, reminding the idea of funds and indexes through ASE, and it also puts things in perspective. It is believed that investment in the Greek Food and Drink Sector, especially in SMEs, is an opportunity even in the recession period. The existing trend in the international investment community indicates positive prospects for the sector. It discusses the findings and observations of the main accounting and business-related issues in the food and drink sector and their effect in investment decisions, which prove to be a matter of great importance and considerable research interest. This paper explores the reasons why internal and external investors should invest in Food and Drink Sector. It provides an updated description of the process of IFRS adoption in Greece, historical background (providing by the literature review), pointing out the comparison with Greek GAAP, and considering currently New Greek Accounting Standards. More, it examines a firm’s financial statements under IFRS, giving information about its performance, position, and cash flow. It can also be useful for accountants and management, but also investors, financial analysts, or business valuers. Besides, it provides sufficient background information to make an investment recommendation for the firm’s stock in the next paper.