We have completed the end of the year 2018, which for most companies means the end of the accounting period and the closing of accounting books, including the preparation of financial statements.
Let's summarize the changes in the financial statements compared to the year 2017.
Some of them are just "cosmetic". These include:
However, I would like to focus on one change in more detail. The change relates to the extension of the options for presentation of Other assets and liabilities (“Časové rozlišení aktiv a pasiv”) in the balance sheet. Up to now, there was a separate item D for Other assets and Other liabilities in the balance sheet. Newly, there is an option to choose between the existing presentation in item D and the presentation within receivables (under C.II.3. Other assets) and liabilities (under C.III, Other liabilities). It should be noted that these two methods cannot be combined, so the same methodology should be used for both assets and liabilities.
Are you wondering which methodology to choose?
It always depends on the entity's individual assessment which items prevail on accounts of other assets and other liabilities of the particular accounting entity. In a case that a major part are items which in fact have the nature of receivables and payables, it makes sense to present these items within receivables and payables. If a major part of items do not have the nature of receivables and payables, but they are supposed to split costs or revenues over several years, I recommend to keep the existing methodology of the presentation under items D. of the balance sheet.