Investor Presentaiton

Financial Reporting MAIN FEATURES OF FINANCIAL REPORTING • • Czech accounting rules are similar to International Financial Reporting Standards (IFRS), but with some significant differences. In particular, Czech accounting rules are much less detailed than IFRS rules. The Act on Accounting serves as the main framework, and detailed guidance is provided in the Decree on Double-Entry Accounting and Czech Accounting Standards. Different decrees and standards specify the rules and standards for different types of corporations (accounting units), e.g. companies, sole entrepreneurs, banks, insurance companies and non-profit organisations, as well as municipalities and institutions financed by the state. All corporations listed in the Commercial Register are obliged to use double-entry bookkeeping. Some specific accounting units not registered in the Commercial Register are permitted to keep simplified accounting records (tax evidence). • • • All corporations recorded in the Commercial Register are obliged to publish their statutory financial statements in the Commercial Register; all financial data about all Czech corporations is thus publicly accessible. The Act on Accounting defines public interest entities in line with EU legislation; i.e. accounting units whose transferable securities are admitted to trading on a regulated market in the EU, credit institutions and insurance companies. All accounting units and groups are categorised depending on the following criteria: net turnover, balance sheet total and average number of employees. In total, there are four accounting unit categories (micro, small, medium and large) and three group categories (small, medium and large). All accounting records must be in Czech language. All accounting records must be kept and financial statements presented in Czech crowns (CZK). The general structure of accounts must be in accordance with the standard chart of accounts. 118

View entire presentation