A history of accounting in the Czech Republic

The development of accounting in the Czech Republic is certainly interesting and informative and we can see that its organization has always enjoyed high standard. What is clear from the development is the fact that accounting has always reflected the atmosphere of the time and it adopted itself to the economic and political influences. In the inter-war period the spirit of the market economy can be traced with the focus on precision and accuracy which was typical for the inter-war Czech Republic. The stress was put on accuracy and truthfulness of expression and on the ability to justify the state's economic activities to the outside world and to be able to document the state of assets and liabilities at any time. In the period of socialism the evidentiary character used to be stressed as in the time of the central planned economy the company was put in a passive role where it was almost impossible to take any significant decision. After the market principles were reinstalled accounting was given a new strength and the stress was put not only on the evidentiary abilities but especially on providing data for the effective financial management of a company. Over the recent years the process of international standardization of accounting has become a very significant phenomenon, which is a logical consequence of the proceeding globalization and the international interconnection of companies.