Financial Crisis in Python

Regardless of the chosen measure in evaluating the globalization within the financial sector, evidence seem to show that capital markets were more open in 1914 than in any other subsequent moment in time up to the 70s of last century. Data published within a study of the World Federation of Exchanges show a new historic record of 11.6 billion derivative contracts being transacted in 2006 on exchanges worldwide, with 5.0 billion futures and 6.6 billion options traded, this increase in derivatives markets activity confirming their continuing growth over recent years. Considering the period between 2002 and 2006, the average annual growth rate of the number of traded contracts reached 14 % for options and 22 % for futures. Paper performs an analysis of the Czech derivative market through a deductive approach starting from the macroeconomic picture of emerging capital markets of Central and Eastern Europe and then moving to the specific case of the Derivatives Exchanges in the Czech Republic. After a review of accounting reforms in Czech Republic, an empirical study is done on data from annual reports of 51 companies listed on Prague Exchange by focusing on the comparison of reporting for financial (FOREX, commodity and interest rate) derivatives by using International Financial Reporting Standards (IFRS) in comparison with the Czech Accounting Standards (Czech GAAP).