Slovakia
| Extent of IFRS application | Status | Additional Information |
|---|---|---|
| IFRS Accounting Standards are required for domestic public companies | All domestic companies whose securities trade in a regulated market are required to use IFRS Standards as adopted by the EU in their consolidated financial statements. | |
| IFRS Accounting Standards are permitted but not required for domestic public companies | ||
| IFRS Accounting Standards are required or permitted for listings by foreign companies | IFRS Standards as adopted by the EU are required in their consolidated financial statements except that a foreign company whose home jurisdiction’s standards are deemed by the EU to be equivalent to IFRS Standards may use its home standards. | |
| The IFRS for SMEs Accounting Standard is required or permitted | No. | |
| The IFRS for SMEs Accounting Standard is under consideration | No. |
Profile last updated: 16 June 2016
RELEVANT JURISDICTIONAL AUTHORITY
The SKAU was established in 1992 and is currently governed by the Act on Auditors No. 540/2007 which became effective from 1 January 2008. The role of the SKAU is to:
(a) | provide guidance to its members in the areas of audit, accounting, and International Financial Reporting Standards; |
(b) | following an approval by its General Assembly, issue the Statute of the Chamber and internal regulations applicable to the auditing profession and ensure that they are complied with; |
(c) | carry out an audit quality assurance review; |
(d) | ensure and control the continuing education of auditors and assistant auditors; |
(e) | lead disciplinary procedures and impose disciplinary measures; |
(f) | provide comments on draft legislation relating to auditors’ activities; and |
(g) | other activities. |
The authority to set accounting standards and regulations rests with the Slovak Parliament and the Ministry of Finance. The accounting law No. 431/2002 provides key principles for measurement of assets and liabilities at initial recognition and at subsequent balance sheet dates, and the decrees of the Ministry of Finance provide application guidance, including a prescribed uniform chart of accounts.
COMMITMENT TO GLOBAL FINANCIAL REPORTING STANDARDS
Yes.
Refer to the IAS Regulation adopted by the European Union in 2002.
Yes.
Refer to the IAS Regulation adopted by the European Union in 2002.
As a member state of the European Union, Slovakia is subject to the IAS Regulation adopted by the European Union in 2002.
The EU IAS Regulation requires application of IFRS Standards as adopted by the EU for the consolidated financial statements of European companies whose securities trade in a regulated securities market. The EU IAS Regulation gives member states the option to require or permit IFRS Standards as adopted by the EU in separate company financial statements (statutory accounts) and/or in the financial statements of companies whose securities do not trade on a regulated securities market. See the Profile for the European Union for more detailed information about the EU IAS Regulation.
In Slovakia, the Bratislava Stock Exchange is a regulated market.
Slovakia used the option under the IAS Regulation to:
- Require IFRS Standards as adopted by the EU in both the consolidated and separate company financial statements of all ‘public interest entities’. Public interest entities are defined as:
- Banks and branches of foreign banks;
- Export-Import Bank of Slovak Republic;
- Insurance companies and branches of foreign insurance companies except health insurance companies;
- The Stock exchange;
- Office of Slovak Assurors;
- The Slovak Railroads;
- Reinsurance companies;
- Asset management companies; and
- Those companies that meet at least two of the following criteria in two consecutive years:
- total assets more than €165,969,594;
- net turnover more than €165,969,594; and
- average number of employees more than 2,000.
- Permit IFRS Standards as adopted by the EU in the separate company financial statements of all companies whose securities are traded in a regulated market that are not ‘public interest entities’ (IFRS as adopted by the EU are required in the separate financial statements of ‘public interest entities’).
- Require IFRS Standards as adopted by the EU in the consolidated financial statements of companies whose securities do not trade in a public market.
EXTENT OF IFRS APPLICATION
For DOMESTIC companies whose debt or equity securities trade in a public market in the jurisdiction:
IFRS Standards as adopted by the EU are required in both the consolidated and separate company financial statements of all public interest entities.
IFRS Standards as adopted by the EU are permitted in the separate company financial statements of all companies whose securities trade in a public market that are not public interest entities.
For FOREIGN companies whose debt or equity securities trade in a public market in the jurisdiction:
Required for some and permitted for others. Foreign companies whose securities trade in a regulated market in Slovakia (and generally in the EU) are required to report under IFRS Standards as adopted by the EU for their consolidated financial statements unless the European Commission has deemed their local accounting standards to be equivalent to IFRS Standards, in which case they may use their local standards.
This is laid out on the ‘Financial Reporting’ page of the European Commission’s website.
IFRS ENDORSEMENT
TRANSLATION OF IFRS ACCOUNTING STANDARDS
Yes.
The European Union has 24 official and working languages. They are: Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovene, Spanish and Swedish. Before they are published in the Official Journal of the European Union, and therefore become binding under EU law, individual IFRS Standards must be translated into all of those languages (other than English and Irish).
Pursuant to a copyright waiver agreement with the Directorate-General for Translation of the European Commission, the Commission takes care of the translation into the official languages according to their own translation process. The translation covers only the standards and mandatory guidance, which is then published in the Official Journal of the European Union.
In addition, some countries (usually the standard setter or institute) have a translation contract with the IFRS Foundation to produce an ‘official translation’ for publication of a bound volume of IFRS Standards (usually the ‘Red Book’) and publication, in some cases, of individual standards and exposure drafts.
