Harmonization of the Financial Reporting in European Union[Proces harmonizace účetního výkaznictví v Evropské Unii]

The Czech Republic - after accessing to the European Union - has accepted the obligation to introduce the harmonization rules of the European Union in the filed of financial statements. In European countries the accounting systems have developed in the context of their historical traditions. Their harmonization is not, therefore, a simple issue. There is also the essential difference among the countries in understanding the requirement of "true and fair view" of financial situation and property in financial statement of the enterprise. European Union Directives are a ground for harmonization of all economic spheres in the European Union. The financial statements are regulated by Directives No. 4 (individual financial statements) and Directives No.7 (consolidated financial statements). With respect to amendments of Directives the implementation of International Financial Reporting Standards into the Directives has been an important act in the field of harmonization. Since January 1st, 2005 all accounting units, shares of which are registered at financial markets, are obliged to apply IFRS in their consolidated financial statements. Since the same date this obligation is in force also for the accounting units in the Czech Republic (enacted by the Law on Accounting), and not only for the consolidated but also for the individual financial statements.