Český finanční a účetní časopis 2020(3-4):5-23 | DOI: 10.18267/j.cfuc.547

Requirements for cash flows reporting in the Czech legislation and their development in time

Lucie Brabcová

Lucie Brabcová; Vysoká škola ekonomická v Praze, Fakulta financí a účetnictví, katedra manažerského účetnictví, nám. W. Churchilla 4, 130 67 Praha 3; .

Although the benefits of the Statement of Cash Flows for its users are indisputable, historically this statement has not been captured in the Czech legislation to a major extent. The aim of the paper is to describe and evaluate the quality of cash flows reporting as required by the Czech legislation as well as its evolution over time and its future development. The research methodology is based on comparative analysis. It can be concluded that the Statement of Cash Flows holds exceptionally weak position in the Czech accounting legislation over time. For the first ten years, it had not been mentioned in the legislation at all; after its introduction only a very little number of significant subsequent changes was made. Moreover, not even the current discussions on the new concept of accounting legislation do not indicate any intention to reconsider the approach to such an important statement.

Keywords: Accounting; Statement of cash flows; Cash flows

JEL classification: M41

Received: November 1, 2020; Revised: November 24, 2020; Accepted: November 26, 2020; Prepublished online: February 4, 2021; Published: February 5, 2021  Show citation