Comparison and application of Lease by Czech accounting legislation and IFRS

Subject of this diploma thesis Comparison and application of Lease by Czech accounting legislation and IFRS is a comparison and analysis of purchase and lease of tangible assets through financial and operational leasing in selected company by Czech accounting legislation and IFRS and to assess which reporting of assets is economically and organizationally effective for the accounting entity. Theoretical background of this diploma thesis is fistly dealing with reporting of financial and operational leasing by Czech accounting legislation and then by IFRS. In Chapter Czech accounting legislation leasing is regarded by the law of accounting, income taxes and the law of VAT. In chapter IFRS are firstly mentioned legislation related to leasing, after its depreciation, accounting, appraisement and at the end of theoretical part is leasing assessed by IFRIC 4. In practical part of this thesis the gained knowledge from theoretical background are used and analyzed. In this chapter the model project is elaborated for company Cramo s.r.o. which acquires and leases Bobcat loader through financial and operational leasing by Czech accounting legislation and IFRS. The decision which reporting method of assets is more effective for the company is made in this chapter. Financial Statements by Czech accounting legislation and IFRS are made for comparison in which is embedded purchased and provided asset and depreciation on the leased item. At the end of this chapter costs and revenues of leasing are summarized by Czech accounting legislation and IFRS and the result of this thesis are discussed