Investor Presentaiton slide image

Investor Presentaiton

Different categories of accounting units dis- close different information in their financial statements (e.g. the cash flow statement and the statement of changes in equity are manda- tory for medium and large entities only; there are different requirements for disclosures in the notes, etc.). The exact layout, structure and headings of the balance sheet, the income statement and the cash-flow statement are set in prescribed tem- plates, and minimum disclosures in notes are prescribed in the decrees. The extent of disclo- sures in Czech accounting legislation is consid- erably less demanding compared to IFRS. A separate annual report must be prepared by all accounting units that are subject to a man- datory statutory audit. A separate report on payments to governments must be prepared by large entities and public interest entities that are active in extractive industries or in the logging of primary forests. All accounting units with shares or bonds pub- licly listed in the EU must maintain books and prepare their financial statements in accor- dance with IFRS, as adopted by the EU. All other accounting units may choose to main tain books and prepare their financial state- ments in accordance with IFRS if they are con- solidated by a parent or an ultimate parent company in accordance with IFRS, or if they have to consolidate, and if they prepare both standalone and consolidated financial state- ments in accordance with IFRS. The Act on Accounting requires that consol- idated financial statements be prepared for an accounting unit that is a controlling entity. Subsidiaries and accounting units over which significant influence is exercised are deemed consolidated accounting units. The obligation to consolidate applies to medium and large groups. Small groups must consolidate only if they include a public inter- est entity. Consolidation is not obligatory where the con- solidating entity is part of another consolidat- ing entity that is governed by the law of an EU member state, and where specific prescribed conditions have been met. However, this rule does not exempt from the obligation to pub- lish consolidated financial statements as men- tioned above. A Czech corporation using the exemption not to consolidate has to translate and publish the consolidated financials of its parent or ultimate parent. The above exemption from the duty to prepare consolidated financial statements does not apply to banks, insurers and reinsurers, and publicly listed share or bond issuers. 79
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