Czech Accounting


Accounting for Grants

As government assistance and contributions have been provided more frequently in the period affected by the COVID-19 epidemic, a need has arisen to reflect the use thereof appropriately in accounting. In this article, we will describe the method of accounting for operating and investment grants under Czech accounting legislation. We will also mention the differences in accounting treatment under International Financial Reporting Standards (IFRS). 

24. 6. 2020

Accounting for and classification of special tools referred to as tooling

With the development and globalisation of the manufacturing industry, there has been an increase in the number of producers involved in supplying individual components to assemble a final product. The automotive industry may serve as an example with a chain of businesses engaged in the development, production and delivery of individual components for car manufacturing. The issue of tools, most frequently referred to as “tooling” today, is typical for the automotive sector. The term includes various moulds for injection, casting, pressing or shaping, tools, matrices, dies, special transport boxes/baskets/containers, etc. 

27. 4. 2020

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