Financial Report - Financial Statements of Company

The aim of this bachelor thesis is to describe and verify the correctness of the process of financial statements in a chosen entity and to check if there is an accurate and honest depiction of reality. Preliminary operations to the formation of financial statements according to the legal framework of the Czech Republic are described in the theoretical part of the paper. That is, for example, the process of stocktaking, reserves, provisions, exchange rate differences, time differentiation, or accrued items. Other topics covered in the work include an issue of book-closing, putting together of financial statements, which consist of balance sheet, profit and loss and attachment, or an issue of verification of the financial statements (an audit) or its release. In the practical part of the thesis, selected steps of the financial report are depicted in the entity Elitex OK s.r.o., which are also compared with the criteria given by valid legal regulations. The paper further shows in which way the accounting unit puts together the financial report (for the year 2014 in particular). The result of the audit for that year is also stated in the work. In the end, recommendations for improvement or elimination of deficiencies are suggested on the basis of comparison of the processes realized in the accounting unit and the theoretical grounds