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Valuation of Assets upon Bankruptcy in the Czech Republic
[Oceňování majetkové podstaty podniku v konkurzu v České republice]

Author

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  • Monika Randáková

Abstract

One of many options how to solve debtor´s decline in Czech Republic is to proclaim bankruptcy. This option is closely related with converting all company assets into cash and using these funds to relatively satisfy all creditor´s claims. This article deals with using most appropriate methods of the company´s assets valuation in bankruptcy, furthermore it deals with reflection of changes in asset´s valuation into company´s accounting and bookkeeping during bankruptcy. To estimate the value of the asset, which is determined to be sold only during irregular conditions, is needed to consider all significant and determining factors if that is possible. When this is not accomplished, the real revenue out of monetization will significantly vary from prerequisites and expectations of creditors will not be fulfilled. This unfavorable situation can even influence their future financial position. During examining this issue many contradictions have been found in the legislation, specifically in accountancy act and in insolvency act. Probable reasons and the outline of solutions about these factual differences is described in this article.

Suggested Citation

  • Monika Randáková, 2014. "Valuation of Assets upon Bankruptcy in the Czech Republic [Oceňování majetkové podstaty podniku v konkurzu v České republice]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2014(2), pages 141-145.
  • Handle: RePEc:prg:jnlcfu:v:2014:y:2014:i:2:id:401:p:141-145
    DOI: 10.18267/j.cfuc.401
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    More about this item

    Keywords

    Bankruptcy; Insolvency; Creditor; Valuation assets; Czech Republic; Konkurz; insolvence; věřitel; oceňování aktiv; Česká republika;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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