The possibility of returning some powers of the Chamber to the state are presently under debate in the Czech Republic. This has arisen due to a sort of misunderstanding stemming from the previous situation, and thus from want of knowledge of and a failure to understand the independent status of auditors. The issuing of accountancy regulations is entrusted to the Ministry of Finance of the Czech Republic under the law on account-ancy. Accountancy is based on Guideline No. 4 of the European Un-ion, and international standards of accountancy. The law on accountancy, fully valid since 1993, stipulates the basic terms to be met.
Most companies are, as of tradition, using double-entry books with respect to the accrual principle.
New principles, which had not been applied in accountancy until 1992, are those of providing precise data on the property, liabilities, and economic results, and of caution. In other aspects, accountancy in the Czech Republic has always respected generally recognized principles. Accountancy valid since 1993 is less oriented on taxes, but does in the meantime provide most data for tax purposes. The new system of taxation, introduced in 1993, includes all basic types of taxes used in the European Union countries. In addtiion to overall accountancy, the auditor must judge the tax obligations of the company concerned.