Czech Accounting Legislation

Act on Accounting serves as the framework for accounting for all entities (companies) in the Czech Republic.

All entities having their registered office in the Czech Republic with their shares or bonds being listed on any European-regulated stock exchange are required to prepare their financial statements

(both stand-alone and consolidated) in accordance with the International Financial Reporting Standards as adopted by the European Union (“IFRS”). Other entities have the option to prepare their consolidated financial statements in accordance with IFRS. If they decide to do so, all consolidated entities can use IFRS as a basis for preparation of their stand-alone financial statements.

Detailed accounting guidance for other entities is given in decrees on accounting and Czech Accounting Standards, issued by the Ministry of Finance. There are separate accounting rules (separate decrees on accounting and a separate set of Czech Accounting Standards) for:

  • Entrepreneurs (most companies fall into this category);
  • Banks and other regulated financial institutions;
  • Insurance companies;
  • Selected accounting units (e.g. State organisational units, State funds according to budgeting rules, Regional autonomous units, Contributory organisations, health insurance companies and others as listed in the Act §1 par. 3);
  • Non-profit organisations, political parties, civil associations, etc.
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    Marek Richter – Partner
    PricewaterhouseCoopers
    Audit, s.r.o.
    nám. Svobody 20, 602 00 Brno
    +420 542 520 170
    marek.richter@cz.pwc.com

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    Petr Mališ – Director
    PricewaterhouseCoopers
    Audit, s.r.o.
    nám. Svobody 20, 602 00 Brno
    +420 542 520 210
    p.malis@cz.pwc.com