Financial Securies ’ Reporting and IFRS 7 Requirements: From Czech Perspective

Financial instruments as such raise emotions and will continue to do so in future, as well. The accounting attitude toward the reporting of financial instruments according to IFRS is to a great extent connected with the fair or, in more specific terms, present values of these instruments. This is due to the fact that the standard issuing authorities aim at providing investors with the most up-to-date data at the moment of issuing the financial statements, with a reference to the actual development of the values of the company’s assets on the market. Since 2005 (due to E.U. Regulation 1606/2002), companies whose shares are traded on the public market are obliged to make reports pursuant to the IFRS in whole EU. This paper provides the analysis of the current situation with reporting of financial instruments under IFRS standards in the Czech Republic and stress the attention on reporting under fair value concept at not such active market..