Disclosure of deferred taxes in annual reports of listed companies at the Prague Stock Exchange

Accounting rules require published financial statements to reflect the tax consequences of economic transactions reported in those financial statements. In most jurisdictions, revenues and expenses recognized in given period for taxation purposes will not fully correspond to what is reported in the financial statements and therefore future tax consequences are to be recognized. As many users of financial information are dependent on published financial accounting information only, the way of disclosure plays important role for their economic decisions. Therefore the paper observes disclosure of deferred tax assets and deferred tax liabilities in financial statements of listed companies at the Prague Stock Exchange and analyses frequently disclosed deferred taxes.