New balance sheet item
Given the approaching date for compiling financial statements as of 31 December 2013, we would like to bring to your attention the new and crucial provisions of Decree No. 500/2002, Coll., implementing certain provisions of the Accounting Act for entrepreneurs’ accounting units (hereinafter the “Decree”), which took effect on 1 January 2013.
The amendment to the Decree has introduced a new registered capital item A. IV. 3. Other profit/loss from previous years. Under this item, accounting units must show any differences arising from a change in accounting methods, deferred tax accounted for in the first year when deferred tax is accounted, and corrections of significant errors from previous accounting periods.
There is also significant change as related to correcting errors that occurred in previous years and to using a different accounting method than in prior accounting periods. As of 1 January 2013, such corrections or changes must not influence the profit/loss of the current accounting period.
Accounting units must describe changes in accounting methods and errors shown under the relevant item in an annex to the financial statements and also reflect the information in the financial statements so that it is comparable.
Accounting units are to decide on the allocation or settlement of “Other profit/loss from previous years” when approving the financial statements.
Certain impacts of accounting corrections in previous years will have to be reflected in additional tax returns.
Other articles
Richard Schmidt Joins KŠB, Strengthening Its Corporate Criminal Liability and Compliance Practice
KŠB expanded its team at the beginning of August with the arrival of attorney Richard Schmidt, who has extensive experience in criminal law, including corporate criminal liability and related compliance matters.
Active counter-drone measures need a broader legal basis
A highly noteworthy legislative proposal was added to the VeKLEP interministerial consultation database on 21 July 2026, namely a government bill amending several laws with the aim of strengthening the resilience of critical infrastructure entities against unmanned aircraft systems. Drafted by the Ministry of the Interior, the bill includes proposed amendments to the Civil Aviation Act and the Act on the Czech Police.
Tomáš Sequens and Dana Jacková Discuss the Risks of the Proposed Amendment to the Building Act
KŠB partner Tomáš Sequens and counsel Dana Jacková recently spoke to specialist news platforms Česká justice and Ekonomický deník about the proposed amendment to the Building Act, which aims to accelerate and simplify the construction permitting process.
