Unsettled receivables in accounting and taxes: Czech case

Abstract

This paper briefly outlines the actual situation of unsettled receivables in Czech enterprises. The aim of the article is to present the results of research in the area of the adjustments to receivables with an impact on the tax base. The first part of the paper analyses the background of debt management from various aspects. From the research, it was found that in recent years’ overdue receivables have still been recorded in the accounts, and the creation of adjustments for non-lapsed receivables is increasing. A discussion then follows in which special attention is paid to area of application of statutory adjustments in tax expenses, where very strong dependency was statistically confirmed.