Acta academica karviniensia 2014, 14(3):208-219 | DOI: 10.25142/aak.2014.061

ANALYSIS AND COMPARATION OF LEGISLATION AND ACCOUNTING OF FOUNDATIONS AND ENDOWMENT FUNDS IN THE CZECH REPUBLIC IN YEARS 1989 TO 2014

Alžběta Urbancová¹, Šárka Kryšková²

¹ Vysoká škola báňská - Technická univerzita Ostrava, Ekonomická fakulta, Sokolská třída 33, 701 21 Ostrava, Email:alzbeta.urbancova@vsb.cz

² Vysoká škola báňská - Technická univerzita Ostrava, Ekonomická fakulta, Sokolská tříd a 33, 701 21 Ostrava, Email: sarka.kryskova@vsb.cz

The aim of this paper is to describe, analyze and compare the development of conditions for the activities of foundations and endowment funds in the Czech Republic in the area of legislation and accounting in years 1989 to 2014. The analysis is focused on:
* the development of the legal regulations of foundations and endowment funds after 1989, after the effect of a separate law on foundations and endowment funds up to the present, which is related to the adoption of the new Civil Code,
* changing conditions for accounting, financial statements, the content and the publication of annual reports and their verification by the auditor.
The integral part of this paper is to draw attention to the negative aspects of the changes, suggest possible measures to address the drawbacks and facilitate the decision-making process of potential founders whether or not to establish a foundation or endowment fund while respecting legal and accounting perspective.

Keywords: accounting, annual report, audit of financial statements, endowment fund, foundation, legal regulation, public benefit entities, status of public benefit

JEL classification: L31, M41, M42

Received: February 23, 2014; Accepted: September 23, 2014; Published: September 30, 2014  Show citation