Equity reference value for the purpose of the report on relations between connected entities

Abstract

The so-called major amendment to Act No. 90/2012 Coll., on Commercial Companies and Cooperatives (Business Corporations Act) includes a change to the existing rules for the preparation of a report on relations between related parties. The amendment concerns, among other things, the determination of the relevant accounting period for the equity reference value.

The article aims to highlight some of the difficulties of this new legislation and outline other possible solutions.

Keywords

• Business Corporations Act
• major amendment
• concern
• report on relations
• relevant accounting period
• reference value