1. Czech Republic Accounting System

2. ACCOUNTING General overview

3. The auditing profession. Chamber of auditors - Feb. 1993 (IFAC, FEE)
Background (History)
Strongly influenced in 20th century by the accounting practice and accounting principles.
Since 1989, and consistent with broader political and economic changes → updated accounting legislation.
The auditing profession.
Chamber of auditors - Feb (IFAC, FEE)

4. Czech Accounting Legislation
Act on Accounting serves as the framework for accounting for all entities (companies) in the CR.
Required preparation of financial statements. - “IFRS”
Detailed accounting guidance - Decrees on Accounting and Czech Accounting Standards, issued by the Ministry of Finance

5. Czech Accounting Legislation
Separate accounting rules for:
Entrepreneurs (most companies)
Banks and other regulated financial institutions
Insurance companies
Selected accounting units
Non-profit organisations, political parties, civil associations, etc.

6. The Form and Content of Published Financial Statements
Financial statements - Decree No. 281/ /2001
Publication of financial statements for all stock companies, large LLC or cooperatives.
December the new consolidation rule
Consolidation rule: exceeding at least 2 of following limits: turnover 700 million CZK, total assets 350 million CZK, and 500 employees.

7. ACCOUNTING POLICIES AND VALUES

8. FINANCIAL STATEMENTS
International Accounting Standards (IAS, IFRS) or other internationally recognized principles (e.g., U.S.GAAP)
Domestic accounting principles given by the law on accounting and domestic accounting standards

9. Enterprises must present the following financial reports:
Profit and loss account, Balance Sheet, Explanatory notes to the accounts,...
The financial statements must give a true and fair view of assets, liabilities, and financial position.

10. not obligatory for financial institutions. INVENTORY is shown at the
CASH FLOW STATEMENTS
are prepared
according to the principles in IFRS 7 and based on cash and cash equivalents.
operating,
investing, and financing
not obligatory for financial institutions.
INVENTORY
is shown at the
lower of cost and net realizable value.
work-in-progress
and finished goods are measured at planned or actual cost (full or direct)
TAXES
to the state budget
as laid down by
the law
income tax at the
rate of 31%

11. DEPRECIATION
normally
calculated on a straight-line basis/acceelerated
given for
individual classes
LEASE
lease period
exceeds 40% of the depreciation
leased asset is
shown and depreciated in the balance sheet
REVENUE
when the risks and
rewards have been transferred

12. Expected development in future
Decrease in income tax
Tax reliefs for foreigners exceeding
IFRS influence
Changes in ACC methods

13. The Czech accounting regulatory system is still young (compared to UK GAAP or US GAAP), so there is still a big space for improvements.
This must be supported not only by accounting experts, academics, researchers and representatives of professionals organizations, but also and especially by political parties.*
*Tereza Miková & Marcela Žárová, University of Economics, Prague, Department of Financial Accounting and Auditing

14. Chemistry Agriculture Bakery and Mills Food Industry Ground Machinery
AGROFERT
Chemistry
Agriculture
Bakery and Mills
Food Industry
Ground Machinery

15. AGROFERT

16. AGROFERT

17. ACCOUNTING Changes since 2004

18. Overview
Source:

19. Massive list of changes in January (list in sources)
Introduction of new categorisation of accounting units (Micro, Small, Medium, Large)
The structure of the balance sheet and profit or loss have been changed
Source:

20. IFRs is a necessity for any company trading in securities.
IFRs Implementation
IFRs is a necessity for any company trading in securities.
Many companies that do not trade in securitie also utilize the system
Allows for investments from foreign capital holders.
Source: ea883742c870&acdnat= _c6236dce97b9fde09fe b5f4df