European Financial and Accounting Journal 2011, 6(1):39-59 | DOI: 10.18267/j.efaj.38

Comparative Analysis of Czech Accounting with International Regulation from SMEs Perspective

Jiří Strouhal1, Marie Paseková2, Libuše Müllerová3
1 Ing. Jiří Strouhal, Ph.D. - Senior Lecturer; Department of Financial Accounting and Auditing, Faculty of Finance and Accounting, University of Economics, Prague, W. Churchill Sq. 4, 130 67 Prague, Czech Republic; <strouhal@vse.cz>.
2 Doc. Ing. Marie Paseková, Ph.D. - Associate Professor; Department of Finance and Accounting, Faculty of Management and Economics, Tomas Bata University in Zlín, T. G. Masaryk Square 5555, 760 01 Zlín, Czech Republic; <pasekova@fame.utb.cz>.
3 Prof. Ing. Libuše Müllerová, CSc. - Professor; Department of Financial Accounting and Auditing, Faculty of Finance and Accounting, University of Economics, Prague, W. Churchill Sq. 4, 130 67 Prague 3, Czech Republic; <muller@vse.cz>.

Use of harmonized accounting standards may reduce investor's uncertainty and can thus reduce the cost of capital. It can significantly improve the communication between business users and all their statements. Due to the globalization of business and international harmonization of financial reporting Czech Republic experiences a shift in paradigms from historical costs accounting towards fair value measurement. Paper provides an analysis between national accounting legislature and international referential. There is also provided how the ability to measure accounting harmonization can be helpful from the perspective of a globalized world. A comparative analysis between Czech accounting regulation and IFRS or IFRS for SMEs show the level of compatibility between these three sets of accounting regulation.

Keywords: Czech Republic, Econometric tools, Globalization, IFRS, International harmonization

Published: March 1, 2011  Show citation

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Strouhal, J., Paseková, M., & Müllerová, L. (2011). Comparative Analysis of Czech Accounting with International Regulation from SMEs Perspective. European Financial and Accounting Journal, 6(1), 39-59. doi: 10.18267/j.efaj.38
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