Approved Interpretation I-52 Employee Benefits

In June 2025, the National Accounting Council (“NAC”) approved new Interpretation I-52 related to employee benefits.

The main reason for this Interpretation is that there are two different ways of accounting for employee benefits in accounting practice, either on an income statement basis or on a balance sheet basis (through equity). This difference in accounting leads to incomparability of the financial statements, both in terms of the profit or loss and the structure of equity.

The objective of this Interpretation is to propose a uniform procedure for recording employee benefits, with the NAC favouring recording through the company’s income statement.

Among other things, the interpretation provides reasons for this decision, as well as how to report short-term/long-term employee benefits, or how to proceed with such reporting upon termination of employment.  

The text of Interpretation I-52 itself is available on the NAC website – www.nur.cz