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…
Ground-breaking ruling: usability of financial statements in deciding on profit distribution
In its ruling of March 2019, the Supreme Court allowed the use of ordinary or extraordinary financial statements as a basis for the payment of profit shares until the end of the following reporting period. This…
Right of Superficies
In this article, let us have a closer look at the right of superficies and its accounting treatment to be applied by both the structure owner and the land owner under Czech accounting legislation. The right of …
Amended Interpretation of the National Accounting Council for Stock-count Differences on Inventories and Fixed Assets
In this article, we will briefly summarise the main features of Interpretation I-39 of the National Accounting Council entitled “Stock-count Differences on Inventories and Fixed Assets”.
Amended Interpretation of the National Accounting Council for the Accounting Treatment of the Sale of Investments in Subsidiaries
In this article, we will briefly summarise the main features of Interpretation I-38 of the National Accounting Council entitled “Accounting Treatment of the Sale of Equity Investments in Subsidiaries in Consoli…
Outstanding Vacation Days – a reserve or an estimated payable?
Opinions as to the period in which costs of outstanding vacation days should be accounted for and how have changed over time. At first, they were not accounted for at all, then through estimated payables and ev…
The Difficulty of Making Accounting Estimates ‒ The Impact of Foreign Exchange Rate
Some accounting estimates are very difficult to assess and evaluate, both for company management and auditors. In addition, even seemingly simple estimates may be of surprise in terms of their partial component…
Recognition of bonuses for work and life jubilees in Czech accounting
Low unemployment and demand exceeding supply of certain professions mean that employers compete in introducing wide portfolios of newly structured benefits in the hope of obtaining the necessary reinforcements …
Restructuring Reserve
Restructuring refers to a programme that significantly changes an entity’s subject of business or the way it operates. If the entity enters the restructuring process, it should create a restructuring reserve in…