Keywords: financial reporting, IFRS/IAS, Czech Republic, accounting standards, financial derivatives, measurement, Prague stock exchange, disclosure, International Financial Reporting Standards, International Accounting Standards
Do Czech listed companies satisfy the requirements on reporting under IFRS/IAS: application on financial instruments?
Although the derivatives have been traded since the middle of the 19th century, a derivative was an unknown term until lately in Czech. The situation changed in 1997 when interest rates increased significantly. From 2001 to 2004 moreover the exchange rate of the dollar against the crown dropped from over 40 CZK/USD to 20 CZK/USD. This paper focuses on the comparison of reporting of the derivatives using IFRS in comparison with the Czech accounting legislature by the companies listed on the Prague Stock Exchange (PSE). None of the companies followed all of the requirements of IFRS on reporting of the derivatives.