IFRS 5 and Its Reporting in the Czech Republic

This paper seeks to assess whether the issuers of listed securities report in accordance with IFRS 5 and whether they do it correctly. IFRS 5 is related to the special reporting of assets held for sale and discontinued operations. It requires the entities that follow IFRS accounting rules to use special methods and principles for such items. While bearing in mind the considerable differences between Czech GAAP and IFRS, many Czech entities are unaccustomed to differentiating between normal assets and assets held for sale as well as providing a separate reporting for some of their operations. However, entities that issue listed securities are obliged to prepare and present their financial statements in accordance with IFRS and should therefore apply the IFRS 5 accounting standard.