Generally accepted accounting principles according to the IFRS and the czech legislation

  • Markéta Bartoňová Technical University of Liberec
  • Olga Malíková Technical University of Liberec
Keywords: Czech legislation, International Financial Reporting Standards, financial accounting, United States Generally Accepted Accounting Principles


Accounting as a system provides quantitative information for users about economic processes which proceed in an accounting unit. The main objective of accounting is to observe and describe financial position, efficiency and cash flow of a given entity. This information should be compiled and presented so that users would be able to make qualified decisions. That is why it is necessary that accounting has to be based on the same methods and principles that should ensure that the outputs from accounting, financial statements, will be comparable namely in national as well as in international view. This comparability should be ensured by respecting of generally accepted accounting principles. Around the world there exist different accounting systems that are based on different historical, cultural, economical or legal assumptions and therefore these generally accepted accounting principles are applied in different accounting systems in a different way. The aim of this article is to analyse how the generally accepted accounting principles are applied within IFRS and Czech legislation and if there eventually exist any differences in this area between these systems. It is possible to claim that Czech legislation is not entirely in accordance with IFRS. In application of some generally accepted accounting principles can be observed similar tendency, however, some principles are in the Czech legislation and IFRS applied entirely in a different way.