Provisions versus impairment of assets, theirs recording and reporting.

The goal of this bachelor thesis is fully describe and analyze provisions and impairment of assets in the Czech accounting system. The thesis is divided into theoretical part and practical part. Theoretical part in the first section classifies accounting, accounting principles and prudence principle from which impairment of assets and provisions proceed. Then I deal deeper with classification, posting and reporting impairment of assets and provisions in Czech accounting system. In the practical part with knowledge from the theoretical part I evaluate methods of formation impairment of assets and provisions at two manufacturing companies. One of these companies haven't got audited financial statement opposite one have audited financial statement. At the end of practical part I compare principle of creation and reporting of provisions and impairment of assets at these two companies