The Ministry of Finance is preparing an important amendment to the Accounting Act. This amendment will conform Czech legislation to EU requirements. The following changes are planned:

  • An alternative form of profit & loss statement is intended to be implemented. This new form should divide expenses into groups according to their purpose rather than type of costs.
  • The concept of accounting period will change, and it is reported that the use of non-calendar year accounting periods will be permitted.
  • An Information Centre is proposed to be established to store obligatory financial statements and annual reports.

The new Act should be introduced most likely for calendar year 1998.

The content of this article is intended to provide a general guide to the subject matter. It is therefore not a substitute for specialist advice.

For further information contact Paul Antrobus or Richard Fletcher, Arthur Andersen Prague, tel +42 2 2440 1300 or enter a text search 'Arthur Andersen' and 'Business Monitor'.