Approved Interpretation I-51 Reporting of Products and Goods Used for Demonstration

In June 2025, the National Accounting Council (“NAC”) approved new Interpretation I-51 related to the reporting of products and goods held for display.

Probably every accounting unit has encountered a situation where it has used its own products as part of a promotion. This could be a one-off promotion for the same product or repeated (even over a longer timeframe – especially over a year). In this context, the question arises as to how these products, used for demonstration purposes, should be properly accounted for – are they non-current assets or current assets?

The NRC’s interpretation of this question is that it is always necessary to assess whether the product is primarily intended for demonstration to customers or for sale. If the product is intended for demonstration, it is to be reported as a non-current asset (provided the conditions for balance sheet recognition are met); if it is primarily intended for sale, it is to be included in current assets (inventories).  

The text of Interpretation I-51 itself is available on the NAC website – www.nur.cz