Amendment to the Act on Accounting

The amendment newly and expressly stipulates that the accounting unit shall use the most recently known USD or EURO exchange rate announced by the CNB or, for foreign currency exchange rates that have not been announced, the exchange rate of the interbank market for conversion of a foreign currency. These provisions shall be applied as of 1 January 2009.

In addition, the amendment sets forth the valuation of cultural monuments or collections of a museum character, the price of which is not known by the so-called the “fictitious price” in the amount of CZK 1.

The method of valuation of conditioned assets and liabilities posted to off-balance sheet accounts (such as court disputes) is newly and explicitly added to the act.

Other provisions of the amendment are of a legislative and technical nature and specify, inter alia, the types of accounting records, the transfer of an accounting record from one form to another form and the use of electronic signature.

The amendment specifies the provisions of the Act on Accounting concerning Czech Accounting Standards to the effect that selected accounting units (in principle state organizations) must always comply with these standards whereas other accounting units may deviate from them in justified cases.

Rules for procuring accounting records for the needs of the state were also added to the Act on Accounting.