The Czech accounting system demonstrates how global capital market demands impact national accounting systems, as well as the consequences of the European Commission's decision to apply the IAS/IFRS at the national level. This section concentrates upon Czech accounting from the early 1990s to the present time.
The first Accounting Act (hereafter the Act) was approved by the Czech Parliament in 1991, commencing the process of transition from a centrally planned economy to a market economy. In May, 2004, the Czech Republic joined the European Union (EU). The general character of the Czech accounting system is a continental European approach with a strong influence from taxes. Becoming a member of the EU has been crucial to speeding up reform of the Czech accounting system. As a member, the Czech Republic is committed to requiring its listed companies to comply with international financial reporting standards in their consolidated financial statements. But what is unclear is how to deal with the July 2002 Regulation of the European Union on the application of IFRS and to what extent this requirement will be extended to other companies.
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References
Czech legislation: Accounting Act No 563/1991 Coll. as amended by Act No 437/2003 Col
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Žǡrovǡ, M. (2008). Accounting Reform in the Czech Republic. In: McGee, R.W. (eds) Accounting Reform in Transition and Developing Economies. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-25708-2_5
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