Cash Flow Statement and Statement of Changes in Equity for selected categories of entities

In the context of the preparation of consolidated financial statements, the topic of whether selected accounting entities are required to prepare a cash flow statement and a statement of equity or whether it is “only” an option has been discussed among the professional public. The Czech accounting regulations state this obligation for the “individual” financial statements of medium-sized and large accounting entities, but this is not explicitly stated for consolidated financial statements. The Chamber of Auditors of the Czech Republic (hereinafter the “CACR”) addressed the Ministry of Finance of the Czech Republic (hereinafter the “MoF”) with a request to comment on whether or not the above-mentioned summaries are a mandatory part of the consolidated financial statements for selected categories of accounting entities. The opinion of the MoF is that if the “individual” financial statements of a medium or large entity are required to prepare a cash flow statement and a statement of changes in equity, this obligation also applies to a medium or large entity preparing consolidated financial statements.

The text of the actual statement of the MoF is available on the website of the Chamber of Auditors.