NI-73 Valuation of securities and ownership interests using the equivalence method in the individual financial statements of entrepreneurs

In December 2025, the National Accounting Council (“NAC”) approved for external consultation a draft interpretation relating to the valuation of securities and ownership interests using the equivalence method.

The drafter of the proposal is our colleague Ing. Alice Štěpánková Šrámková.

This proposed interpretation responds to the differences (discrepancies) that currently exist in the application of the equivalence method in Czech accounting regulations. A different approach is taken in the valuation of equivalents in the unconsolidated financial statements of businesses, in the financial statements of financial institutions, and in the consolidated financial statements of businesses. The adjustment of the acquisition price should be made in the same way for all types of entities, in the form of an adjustment for the share of post-acquisition changes in equity and goodwill amortization.  From the moment of acquiring a share in a controlled entity, the accounting entity should therefore record information not only on the amount of equity, but also on the fair value of the assets and liabilities of that entity, monitor these facts as of the balance-sheet date (or the date on which the financial statements are prepared), and make the relevant adjustments in the financial statements.  

The full text of the draft interpretation, including illustrative examples, can be found at the following link: https://nur.cz/wp-content/uploads/2025/12/NI-73.pdf

The general public now has until 15 February 2026 to comment on NI-73. Subsequently, the external comments will be addressed and will result in the final form of this interpretation.