On September 14, 2026, the National Accounting Board (Národní účetní rada – NÚR) approved the final text of a new Interpretation concerning the determination of the timing of revenue recognition.
This subject is widely debated among accounting professionals, as revenues constitute one of the most critical components of financial statements.
Interpretation I-55 addresses two fundamental questions:
- When an accounting entity should recognize revenue, and
- At what amount that revenue should be measured.
Because current Czech accounting regulations lack explicit statutory provisions for determining the exact timing of revenue recognition from the sale of goods, products, and services, the Interpretation draws upon the principles of International Financial Reporting Standards (IFRS) (specifically IFRS 15 principles).
Key Criteria for Revenue Recognition
Under the Interpretation, an accounting entity recognizes revenue when all of the following four conditions are met:
- Delivery: The entity has delivered the product, goods, or services to the customer.
- Reliable Measurement: The entity can reliably measure the amount of revenue.
- Probability of Inflow: It is probable that the entity will collect the consideration due for the products, goods, or services provided.
- Matching Principle (Costs): The entity can reliably measure the costs incurred or to be incurred in respect of the transaction.
The Interpretation provides detailed guidance on each of these four criteria to assist entities in evaluating whether they have been satisfied.
In addition to procedural rules for determining the timing of revenue recognition, the text includes practical illustrative examples reflecting real-world business scenarios.
The complete approved text of the Interpretation is available on the NÚR website: Approved Interpretation I-55 (PDF)
This text was translated by AI.
