The proposal, which the ministry published on its website (CS only), already incorporates the legislative changes we informed you about in previous articles (e.g. the possibility to revaluate tangible assets to fair value according to rules similar to IAS 16, where revaluation is recognised in equity), and also contains a number of new provisions.

A fundamental change is made to the definitions of the elements of the financial statements, which have been expanded to include definitions relating to right-of-use (an asset arising from a long-term lease of a tangible asset), receivable and right-of-use from a finance lease (i.e. an asset arising from a lease agreement with a mandatory or certain buy-back of the asset at the end of the lease term). In addition, provisions have been added on the eligibility of expenses and income for recognition, including offsets or recognition in equity.

Another significant change from the previous proposal is the modification of the provisions relating to revaluation in conversions and contributions. The concept of “transactions lacking commercial substance” is newly introduced. In the case of such transactions, it will not be possible to revalue them at fair value. The revaluation will be based on the carrying amounts recorded in the accounting records of the contributing entity or the entity involved in the conversion. A contribution or conversion lacking commercial substance is a contribution or conversion for which no agreement with a person other than an entity in the same group is required to determine the interest in the share capital.

The legislative text of the implementing regulation (i.e. the Decree) is still pending. So far, only theses are available.

As regards the effective date of the new Accounting Act, the Ministry of Finance of the Czech Republic has published on its website the date of 1 January 2026. Given that the Act has not yet been discussed by the Legislative Council of the Government of the Czech Republic, and therefore has not been submitted to the Parliament of the Czech Republic for consideration, we assume that the approval of this Act may not take place until 2025 at the earliest. The Legislative Council of the Government of the Czech Republic has previously stressed that for such a major change in legislation, sufficient time is needed from the approval (publication in the Collection of Acts) to the effective date in order for reporting entities to properly prepare for the change. Therefore, we believe that the new Accounting Act will not come into effect before 1 January 2027.

In future issues of the dReport newsletter and on the pages of our blog, we will bring you more detailed information about the changes that await us with the new Accounting Act.