Abstract:

The basic function of  accounting  is  to  provide all  its users  with  reliable  data,  not  only  for evaluating  the past performance of  a business  entity,  but  also  for the  ability  to  make  right decisions in the future, i.e. to predict the future business condition. It is obvious that all of the information  requirements  of  users  cannot  be  met  entirely.  This paper  deals  with  the problematical aspects of financial reporting according to the laws of the Czech Republic that were identified  by  the  SMEs´  respondents  within  a  questionnaire  survey.  The  paper  also compares these problematical aspects with the solutions of the IAS/IFRS and IFRS for SMEs and presents a proposed method of conversion of financial reporting in accordance with the laws  of  the  Czech  Republic  to  non-regulatory  financial  statements  intended  for business management and decision-making by internal users.