In mid-August 2026, a government bill amending Act No. 563/1991 Coll., on Accounting, and Act No. 93/2009 Coll., on Auditors, was submitted to the Chamber of Deputies as parliamentary print 279/0.
The main proposed changes to the Accounting Act relate to the Sustainability Report (ESG reporting) and information on intangible resources, which form an integral part of the annual report. The primary proposed change is the narrowing of the scope of accounting entities required to prepare this report. Conditions are newly established in the form of exceeding an annual net turnover of CZK 11,000,000,000 and simultaneously an average of 1,000 employees per accounting period. Other provisions of the Accounting Act are a reaction to this change, aiming for an overall simplification of reporting preparation, the protection of smaller entities within supply chains when providing data to entities mandatorily reporting on sustainability, and the introduction of reporting obligations for certain third-country companies operating in the European Union market through subsidiaries or branches.
Furthermore, the amendment updates the area of materiality in financial statements for selected accounting entities. Hitherto, the materiality threshold for the valuation of individual tangible assets or sets of movable tangible assets was set at CZK 40,000; the amendment newly proposes a threshold of CZK 100,000.
The main proposed changes to the Auditors Act respond to the Accounting Act bill, particularly regarding the sustainability report. Additionally, a change is proposed concerning the fee for applying for a partial part of the statutory auditor examination. Under current regulations, the maximum fee is capped at CZK 7,000; the bill now stipulates that the fee must not exceed the costs incurred by the Chamber of Auditors for that specific part of the auditor examination.
The primary effective date for these changes is January 1, 2027, and close attention must be paid to the transitional provisions.
We will keep you informed of further legislative developments.
This text was translated by AI.
