IFRS vs. CAL: summary of practical knowledge and identification of research questions

In 2004, the Czech Republic entered into the European Union. This brought the obligation to implement International Financial Reporting Standards to the Accounting Act. The implementation does not mean mandatory use of IFRS for individual financial statements, however, it enables it. This fact brings a different presentation of accounting items which subsequently can result in a different financial indicators value. The paper theoretically presents financial reporting (International Financial Reporting Standards and Czech accounting legislation), identifies the impact on financial indicators, summarizes the current practical knowledge in this area and specifies related research questions.