What kind of Statement of comprehensive income for the Czech Republic?

The aim of the research is to define which format has been adopted by companies listed on the Czech Republic Stock Exchange for the new Income Statement to be prepared according to the International Accounting Standards-IAS 1 revised in 2007. In particular, we examine the Financial Statements 2010 published online. The IAS 1 revised allows the company to choose between a reclassification of items by nature or by function (destination), it also provides two alternative presentations of the income statement: a single statement of comprehensive income or two statements, the first containing the components of net income, and the second that, starting from net income, shows the other components of expanded income. The evolution of the principles of financial statements and the fair value in the evaluating the assets as an alternative to historical cost characterises the configuration of the incomes, according to Internal Financial Reporting Standards-IFRS (Bers, 2000; Sucher and Bychkova, 2001). The net incomes are determined according to the principle of economic competence. According to IAS/IFRS, this principle reflects the Anglo-Saxon approach to the financial statement, it considers the concepts of income and costs closely related with those of assets and liabilities, as they represent their changes in value. The consistency of the company's equity and its variations as a result of decisions of management is heightened. So, according to this approach, the determination of the economic result is the consequence of the equity in a given period. This means that the income produced in a certain period comes also from the changes in value recognized in the equity elements, that is by values without transactions with other economies. Therefore, the income statement, besides the net income (Net Income-NI), provides an " extended " income to the "comprehensive" income (the Comprehensive Income-CI). From a methodological point of view, the research is developed in the following steps: a) Selection of the companies surveyed; b) Selection of the documents to be analysed; c) Election of the empirical aspects to be studied. a) In the first step the financial statements of the listed Czech companies that have adopted the IAS / IFRS principle have been checked in preparing their financial statements, as issuers listed on a regulated market. The target market is the Czech Stock Exchange. From a limited number of listed companies, all companies are analysed. b) In the second step the analysis of the financial statements for the year 2010 published on the website of the Czech Stock Exchange has been made. c) In the third profile (the aspect to analyse), then, it should be specified how the research is driven at two levels:-The mere empirical description of the existing;-The check of the relationships between specific aspects traced to variables. From this analysis of the existing accounting principles in Eastern Europe, we have treated the IAS/IFRS principles on the income statement. Then, we have described and summarised the data emerging from the observation of the 2010 consolidated financial statement relating to the new format of the Income Statement. The attention was focused on the election between one of the two formats of income statement, a theme that creates debates since a long time. Then, we propose some reading hypothesis for any of the findings obtained. In the last part the results of empirical research on the income statement of the companies listed in the Czech Republic are shown. The results show that the Czechs financial statements had not a firms’ propensity to separate the section of the income statement in two statements rather than to integrate it into a single one, while the reclassification of the income statements privileges the reclassification by nature.