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
KŠB advises the National Development Bank on the integration of the Czech Export Bank
KŠB advised the National Development Bank (Národní rozvojová banka, a.s.) on the integration of the Czech Export Bank (Česká exportní banka, a.s.) into the NRB group.
When Excessive Prevention Does More Harm Than Good
At the end of 2025, the Supreme Court of the Czech Republic ruled that the preventive retention of traffic and location data under the Electronic Communications Act infringes the rights of the persons whose data is concerned.
KŠB Advises on the Establishment of FIDUROCK Retail Parks Fund SICAV
Kocián Šolc Balaštík advised Fidurock on the establishment of FIDUROCK Retail Parks Fund SICAV, an investment fund targeting qualified investors and focused on areal estate portfolio in the Czech Republic and Slovakia.
