• Czech Republic is included in the IFAD GAAP Convergence Studies
• National Professional Organisation Website: Union of Accountants of the Czech Republic
• Response to IFAC Member Body Survey on Standard Setting and Regulation
• World Bank ROSC Accounting and Auditing Report.

Update for April 2011
Update for February 2011
Update for December 2009
Update for November 2009
Update for July 2003

Adoption of IFRSs in Europe Effective in 2005

In June 2002, the European Union adopted an IAS Regulation requiring European companies listed in an EU securities market, including banks and insurance companies, to prepare their consolidated financial statements in accordance with IFRSs starting with financial statements for financial year 2005 onwards. EU countries have the option to:

• Require or permit IFRSs for unlisted companies.
• Require or permit IFRSs in parent company (unconsolidated) financial statements.
• Permit companies whose only listed securities are debt securities to delay IFRS adoption until 2007.
• Permit companies that are listed on exchanges outside of the EU and that currently prepare their primary financial statements using a non-EU GAAP (in most cases this would be US GAAP) to delay IFRS adoption until 2007.

The European IAS regulation applies not only to the 27 EU Member States but also to the three members of the European Economic Area (EEA) – Iceland, Liechtenstein, and Norway.

Czech Republic is an EU Member State. Consequently, Czech companies listed in an EU/EEA securities market follow IFRSs since 2005. In July 2010, the European Commission published the results of a survey of the 27 EU member states and the 3 EEA member states regarding the four options above. For information on each country's plans, click to download:

• Table on Use of IFRS Options 30 EU Member and EEA States (PDF 64k)

The European Commission has adopted the following wording for use in the notes to the accounts and in the audit reports of companies subject to EU Regulation 1606/2002/EC (the 'IAS regulation'):

• "in accordance with International Financial Reporting Standards as adopted by the EU" or
• "in accordance with IFRSs as adopted by the EU".

Companies may also state, in a footnote, compliance with IFRSs as adopted by the IASB, if that is the case.

In September 2011, the European Commission services published a report an update on the extent to which certain options included within the Accounting Directives have been incorporated into the law of the Member States and EEA countries. Please click for access to the report (PDF 816k, link to EC website).

Please click for:

• the amendment of the Accounting Act (link to Czech government website, document is in the Czech language)
• the amended full version of the Accounting Act (link to Czech government website, document is in the Czech language)
• an English language summary and explanation of the changes prepared by Deloitte Czech Republic:
  IFRS Gets the Green Light – (R)evolution in Czech Accounting (PDF 191k)

Deloitte Czech Republic has published

• IFRS Model Financial Statements 2010 (link to Deloitte Czech Republic website)
• IFRS Presentation and Disclosure Checklist 2010 (link to Deloitte Czech Republic website)
• Czech Language Version of IFRSs in Your Pocket 2010 – IFRS do kapsy 2010 (link to Deloitte Czech Republic website)
• Accounting News (PDF 206k), a summary of developments in Czech accounting standards, IFRS and US GAAP (in English).

All Listed Companies in the Czech Republic May Now Use IFRS

In the Czech Republic starting from 2002, all listed companies are permitted to prepare consolidated financial statements in conformity with IFRS. For certain listed companies - about a dozen that trade on the main board of the Prague Stock Exchange – IFRS financial statements are now required.