Accounting

Foreign Exchange Gains or Losses in the Financial Statements

The year-end is approaching, which entails financial statements for those companies whose reporting period corresponds to the calendar year. The financial statements involve a number of procedures, referred to as closing operations, including an accurate measurement of assets and liabilities as of the balance sheet date. The accurate measurement of assets and liabilities denominated in a foreign currency also involves their remeasurement as of the balance sheet date. This article aims to summarise basic procedures and draw attention to some remeasurement issues. 

25. 11. 2019

Discounts in Czech Accounting

Discounts, prompt payment discounts, percentage discounts and bulk discounts are business tools used by both small and large companies in marketing in various industry sectors. We have become used to discounted prices and encounter discounts in stores on a daily basis. We could argue whether the use of a discount relates to the quality of provided products and services and whether it is reflected in customer psychology. However, we will leave this very interesting topic aside for now and focus purely on the accounting perspective, which is not as straightforward after an in-depth analysis as it might appear at first glance. In a figurative sense, even here “discount is not for free”. An accounting professional needs to train his/her judgement in how to recognise the discount correctly, whether it has an impact on valuation, what its tax implications are, etc. 

22. 10. 2019