BOBEK Michal Vysoká škola ekonomická v Praze

The article focuses on provisions in the metallurgical industry in the Czech Republic before and during the financial crisis. The provisions are briefly characterized as an accounting category with an emphasis put on their role in the metallurgical industry. The statistical analysis compares the size of provisions before and during the crisis. The provisions are then considered in relation to other financial ratios (e.g. profitability) and accounting categories (e.g. equity or sales). Based on the findings, a time series analysis of provisions and ratios is presented. Provisions are a sensitive accounting category and can be used for adjustments of profit and debt ratio. For this reason, the article analyses the changes in provisions in relation to the crisis and assesses the adjustments made before and during the crisis. In its next part, the article presents the provisions under special legislation (such as the Act 563/1992 Coll. and others). Given their importance in metallurgical industry, these provisions are compared with short term financial assets and accounting provisions. More focus is placed on the accounting provisions, especially on their types, size, development and special cases (provisions for restructuring). The accounting provisions are shortly examined as an accounting category as well. A great attention is paid especially to the question of disclosure and the lack of information provided. Finally, the provisions for pensions and similar payables and Income tax provision are analysed briefly as well.

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