Valuation of Assets upon Bankruptcy in the Czech Republic

Oceňování majetkové podstaty podniku v konkurzu v České republice

Monika Randáková

Český finanční a účetní časopis, 2014, vol. 2014, issue 2, 141-145

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.

Keywords: Bankruptcy; Insolvency; Creditor; Valuation assets; Czech Republic; Konkurz; insolvence; věřitel; oceňování aktiv; Česká republika (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2014
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DOI: 10.18267/j.cfuc.401

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