Small and medium-sized entities will no longer be required to disclose non-financial information in their annual reports
14.01.2017Company: PricewaterhouseCoopers Česká republika, s.r.o.
The Accounting Act introduces significant simplifications in the compilation of annual reports for micro, small and even medium-sized entities. While the actual obligation to prepare an annual report is, as previously, tied to the obligation to have the financial statements audited, the aforementioned entities are no longer obliged to share non-financial information in their
annual reports.
This is related to the omission of data relating to for example presumed development of the entity's business activities in the area of environmental protection and employment relations, activities in research and development, facts that occurred after the balance sheet date, etc.
On the other hand, the obligation to prepare an annual report has been implemented even in cases where the financial statements are subject to a mandatory audit because of a special legal regulation. For example, if the entity prepares an annual report (either mandatorily or voluntarily), the report on relations remains mandatory.
The obligation to draw up a report on relations is based on the Act on Business Corporations, and is therefore independent of the requirements of the Accounting Act.
Disclosure requirements for financial statements and annual reports remain unchanged. Only the maximum period was specified at 12 months from the balance sheet date. In the case of using exemptions from consolidation, the Czech accounting standards still demand that the consolidated annual report and the consolidated financial statements (including the auditor's report), prepared for a broader consolidation unit by another consolidated entity, be published in the Czech language.
Tags: Finance | Business Development |
