The development of accounting in Czechoslovakia after the World War II was influenced by political and economic changes of that time. Firstly, it is a subject to tradition, and then also the political order. It results in the transition from the Germanic type of accounting to the Soviet model of...

IASB and FASB developed revised standards IFRS 3 (2008) and SFAS 141 (2007) in their joint project relating to the accounting for business combinations. Measurement of goodwill according to the revised standards differs on principle from current standards IFRS 3 (2004) and SFAS (2001). Goodwill...

There is the conceptual problem to incorporate the non-controlling interests (NI) in the statement of financial position. Existing approaches are unincorporation of NI into the statement of financial position, incorporation of NI in liabilities, incorporation of NI in equity and so called...

The main topic of the paper is an experiment described by Hopkins, Houston and Peters published in Accounting Review in 2000. Their study concerned on impact of accounting method on judgement of analysts in case of accounting method selection for the business combination reporting. This...

Financial statements display the financial effects of transactions and other events by aggregating them into groups which have common characteristics. These broad groups are called the elements (building blocks) of financial statements. These elements are a base for recording, classifying and...

Good understanding of theoretical concepts of consolidation of financial statements is essential for correct interpretation of consolidated figures. There are seven principal concepts of consolidated accounts indicated in this paper, from proprietary concepts, through parent entity concepts to...

In case of negative amount of total equity can occur phenomenon ‘negative amount of investment’ in application of equity method, in its developed as well as undeveloped form. ‘Negative investment’ doesn’t comply with definition of asset in internationally respected standards of...

Goodwill was recognized to the extent of acquirer’s interest for several decades. It was measured as difference between cost of acquisition and acquirer’s interest in the identifiable net assets of acquired entity at the date of acquisition. Consequently recognized goodwill does not...

Allocation of goodwill to the elements of internal structure of the entity (either enterprise or group) is necessary for the measurement of impairment of assets and also for various economic analysis for managerial purposes. Appropriate allocation of goodwill is currently very important because...

In the period between 1953 – 1965 the system of Book-Keeping Evidence of the National-Economic Evidence was used in Czechoslovakia, based strictly on the Soviet model of accounting. This system was replaced in 1966 by Singular System for Economic Information. The content followed the post-war...