Accounting and tax implications of financing a car in business

This bachelor's thesis focuses on various options for financing a car in business. The aim of this bachelor's thesis is to conduct a comprehensive analysis and explain the accounting and tax impacts associated with car financing through various forms of financing, and subsequently to understand the differences in accounting between Czech standards and IFRS. The thesis provides information on the basic accounting and tax issues associated with the acquisition and subsequent operation of a vehicle in business. It further analyzes individual types of financing such as acquisition by purchase, acquisition without payment, on credit, or through leasing. Based on the examination of all types of financing, it mainly addresses external sources. The focus is primarily on leasing and bank loans, which are the two most common methods of financing vehicles in business practice. Consequently, it outlines their advantages and disadvantages and presents methods for their mutual comparison, namely the net advantage of leasing and the discounted expenditure method. The acquired knowledge and information about leasing are then applied to specific examples, illustrating the differences in accounting treatment according to Czech accounting standards and IFRS.