Czech Financial and Accounting Journal, 2013 (vol. 2013), issue 4

Nobelova cena za ekonomii pro otce hypotézy o efektivních trzích

Petr Musílek

Český finanční a účetní časopis 2013(4):5-6 | DOI: 10.18267/j.cfuc.346  

BRICS: Exchange Rate policy in Context of Internal and External Equilibrium

Jaroslava Durčáková, Ondřej Šíma

Český finanční a účetní časopis 2013(4):7-29 | DOI: 10.18267/j.cfuc.348  

The article deals with the exchange rate policy of Brazil in period 1999 - 2012. The first part informs about the global development of the system of exchange rates and shows marked differences after 2008. This global course is supported in the case of Brazil. Next part is concentrated mostly on the interaction between exchange rate policy and internal and external equilibrium. Brazilian balance of payments seems to be suitable concept to catch these events, including often mentioned impacts of the so called unconventional monetary policy on emerging markets. Besides these effects the Brazilian economy was influenced by long-term changes in the global...

Role of SDR in International Monetary System

Jana Marková

Český finanční a účetní časopis 2013(4):30-44 | DOI: 10.18267/j.cfuc.350  

Presented article deals with SDR issued by International Monetary Fund in early seventies. It is a reserve asset whose issuance should reduce a dependence of foreign reserve creation on a stock of gold and on a U. S. balance of payments. After a crash of Bretton-Woods monetary system SDR should become a basic reserve asset whereby it could be possible to control and regulate international liquidity. The target of the article is to analyze its current and past role in international monetary system and to show problems that block it to play a role of a world currency and to become a global currency that international monetary system is based on. Attention...

About Draft on Financial Transaction Tax

Naďa Blahová

Český finanční a účetní časopis 2013(4):45-54 | DOI: 10.18267/j.cfuc.351  

Part of the representation of the European Union chose a tax on financial transactions from a range of possible tax burden on the financial market, which began to discuss in relating to the effects the financial crisis. The aim of the article was to deal with the financial transaction tax in the context of selected theorists view as well as representatives of practice. Furthermore, the article presents a range of possible approaches with the intention to focus on the solution chosen and its risks in detail. The objectives that its supporters connect with the application of tax are evaluated in the conclusion of the article. A financial transaction...

Comparison of the Impact of Taxes and Other Factors on the Behavior of Companies in the Old and New European Union Member States

Jiří Kostohryz

Český finanční a účetní časopis 2013(4):55-69 | DOI: 10.18267/j.cfuc.352  

The aim of this paper is to try to prove using a panel regression analysis the influence of the EATR (Effective Average Tax Rates are the indicators that businesses take into account during decisions on their investments and methods of financing) and selected variables as explanatory variables on the own constructed indicators of the share of different types of financing and different investments into selected assets to the total amount of assets. The EU countries are divided into two groups for the purpose of article: the old and new member states. A comparison is made between these two groups of countries. The panel data were obtained from financial...

Arm's Length Principle in Intangible Assets Valuation

Jiří Jakoubek

Český finanční a účetní časopis 2013(4):70-83 | DOI: 10.18267/j.cfuc.353  

All transactions in multinational enterprises which are realized among group members are very sensitive to tax risks arising from (appropriate) asset valuation. The more often the transactions are connected to intangible assets or R&D services the more tax risks they generate. This article identifies theoretical and then practical issues while stating license fees or intangible asset valuation. The authors show how it is possible to use purpose-built model of license fees for optimizing tax position of each group member, especially of the member who develops specific intangible asset. The authors compare the old version of OECD Transfer pricing...

Analysis of customer lifetime value model: Literature review

Petr Čermák

Český finanční a účetní časopis 2013(4):84-95 | DOI: 10.18267/j.cfuc.355  

The financial performance of a company is evaluated by two models in the marketing and sale phase of business cycle: tactically oriented customer profitability analysis model (CPA) and strategically oriented customer lifetime value model (CLTV). The article surveys the current literature which deals with both marketing and sales models with the emphasis on the strategic customer lifetime value model. Furthermore the article studies strengths and limitations of different models used to determine the customer lifetime value with the respect on their application on real data. The paper concludes that there is a significant amount of limitations of the...

Once Again on the Issue of Auditor's and Tax Advisor's Duty of Confidentiality, this Time in the Context of Changes to its Extent

Jan Molín

Český finanční a účetní časopis 2013(4):96-109 | DOI: 10.18267/j.cfuc.357  

This paper deals with auditor's and tax advisor's duty of confidentiality. In the first part I define the auditor's duty of confidentiality, also in the context of legal regulation development concerning the auditor's profession. I go on to discuss aspects of breach of the duty to confidentiality and mention particular cases that are not considered to be the breach of the duty to confidentiality under the Act on Auditors. This is followed by defining the tax advisors' legal obligation to maintain the duty of confidentiality. The paper also focuses on the comparison between auditors' and tax advisors' duty of confidentiality and compares the relevant...

Assessment of the New IASB Lease Accounting Model from Lessees Perspectives

Barbora Janasová

Český finanční a účetní časopis 2013(4):110-127 | DOI: 10.18267/j.cfuc.359  

There are many views on how to report leasing transactions in the financial statements. As part of the joint leasing project, IASB and FASB are trying to come up with the new standard leasing already for seven years. The aim of this paper is to assess the impact of the proposed Exposure Draft on lessees. The paper tackles the controversial areas as well as benefits of the new proposal. Individual contributions of the lessees are thoroughly examined and compared to those from auditors and to the Draft. Hopefully the wide criticism of the first Exposure Draft would have a positive impact on the second Exposure Draft, and that the second Exposure Draft...

Comparison of Supervision of the Quality of Auditors' Activities in Czech and Slovak Republic

Jana Gebauerová

Český finanční a účetní časopis 2013(4):128-136 | DOI: 10.18267/j.cfuc.360  

The supervision of the quality of auditors' activities in the Czech and Slovak Republic has developed in different directions even though the default Act of 1989 for this profession was identical. The Czech approach was more aimed at the restriction of undesirable behavior of auditors the Slovak approach focused more on the rectification. For further development of the supervision of quality in the Czech Republic, it would be particularly suitable more effective quality control of auditors. Furthermore, the experience of public-interest entities in which be included entities with a turnover or assets above a certain limit should be involved, including...

Reform of the OTC Derivatives Markets

Petr Dvořák

Český finanční a účetní časopis 2013(4):137-144 | DOI: 10.18267/j.cfuc.362  

The objective of this contribution is not only to explain the position of financial derivatives on global financial markets, but also evaluate their impact on the operation of financial systems. The core of this contribution is dedicated to the OTC derivatives instruments that in the period before the outbreak of global financial crisis were not subjected to almost any regulation, except for some dishonest practices. Institutional response to the global financial crisis however changed significantly the regulatory-supervisory approach also to the OTC derivatives markets. The global regulatory approach introduced quite promptly regulation of important...

Using R in Finance

Jiří Sedláček

Český finanční a účetní časopis 2013(4):145-163 | DOI: 10.18267/j.cfuc.363  

R is open source software environment (and language) for statistical computing and graphics. Different surveys are showing R's popularity has increased substantially in recent years, especially in academic environment. Therefore, at the beginning main advantages and comparison to commercial statistical software are presented. Second, selection of the best interface for given tasks is important. In each category (GUI or editors/IDEs) several product are compared. Data structure for time series in base installation is suitable for regular time series only. Therefore, several other data structures in different packages are compared: almost all support...

Do Firms in Insolvency Proceedings Publish Their Financial Statements?

Jiřina Bokšová, Monika Randáková

Český finanční a účetní časopis 2013(4):164-171 | DOI: 10.18267/j.cfuc.364  

Firms listed in Business Register are requested to publish their financial statements till the end of the consequent period at the latest in documents collection of the Register. This legal requirement follows the EU legislation. The main purpose is to protect third parties when negotiating business contracts. However, based on our research, majority of Czech firms fail in this requirement. Paper also focuses on the researching of insolvent firms and discusses fulfilling of the presenting obligation.

Customer´s Profitability and Payment Conditions of a Trade Relation

Artur Rutkouski

Český finanční a účetní časopis 2013(4):172-182 | DOI: 10.18267/j.cfuc.365  

The article elaborates the possibilities of practical usage of a traditional model of Customer profitability analysis and its extension by costs of capital connected with a shorter or longer interval receivables´ coverage or with additional sources linked in inventories required by a concrete customer need. On a base of empirical research it investigates correlations between three groups of variables - between maturity of receivables and customers´ profitability, between unit price and product category and between level of customers´ turnover and interval of maturity rendered to these customers. In empirical part it concludes the investigated company...

Relation between Strategic Management Accounting and Strategic Management

Libuše Šoljaková

Český finanční a účetní časopis 2013(4):183-190 | DOI: 10.18267/j.cfuc.366  

This paper analyses relation between strategic management accounting and strategic management. Strategic management accounting should provide information support to strategic management. But most definition of management accounting includes also elements of strategic management. Often strategic management accounting and strategic management diffuse very strongly.

Profitability Indicator for Customers in Corporate Banking

Petr Vacek

Český finanční a účetní časopis 2013(4):191-199 | DOI: 10.18267/j.cfuc.367  

The article is searching for an appropriate indicator of customer profitability in corporate banking. It points out the advantages and disadvantages of the most common indicator - RAROC. Basel III regulation increases capital requirements which push banks to reassess their approach to profitability measurement. This may make the indicator based on regulatory capital approach (resp. based on risk weighted assets) superior to standard RAROC. Nevertheless, the most relevant disadvantage of RAROC is that all the costs are allocated to the customer regardless of the cause-and-effect allocation principle. It leads to a bias of such indicator and possibly...

Internal Company Bank

Miroslav Brabec

Český finanční a účetní časopis 2013(4):200-204 | DOI: 10.18267/j.cfuc.368  

Due to difficult conditions having effect on internal bank operations, at present in form of payment institution only, which they occurred as a result of stricter stipulations contained in Act no. 284/2009 Coll., the Law of Payments, is now appearing a new way to use this internal value management tool back to its original purpose, which is the strengthening the financial discipline and responsibility in the direction of internal departments in a decentralized organizational and economic structure.

Information Base for Common Decision-Making Role in the Management of Business Entities

Miroslav Brabec

Český finanční a účetní časopis 2013(4):205-212 | DOI: 10.18267/j.cfuc.369  

The insufficient use of information provided by management accounting is one of the major difficulties causing the problems threatening the business practice in these days. If you can afford to neglect the use of instruments of this accounting in the time of economic boom in recent years, at present, with the recession, the absence of these instruments in the internal management necessarily leads to quandary of how to deal with growing tensions between the amount of available economic resources in one hand and the size of the economic profit accredited by the external surrounding entity, on the other. Of course, it is not possible to argue that only...

Price Setting and the Role of Management Accounting for Service Provided by Not-For-Profit Non-Governmental Organizations

Ondřej Matyáš

Český finanční a účetní časopis 2013(4):213-219 | DOI: 10.18267/j.cfuc.370  

Compared to business organizations, not-for-profit non-governmental organizations consider far more factors when setting the price of their service than just expected supply and demand for. The paper focuses on both the factors which influence the price setting process and which are specific for not-for-profit sector and whether management accounting knowledge can make the process of price setting more rationale and evidence-based. Based on observation of many of NGOs, the factors can be derived and generalized - they are: insufficient knowledge of real cost structure of organizations' activities, legislative restrictions and/or other limitations the...

Managing exchange rate risk in not-for-profit non-governmental organizations

Ondřej Matyáš

Český finanční a účetní časopis 2013(4):220-228 | DOI: 10.18267/j.cfuc.371  

Planning and budgeting is a key controlling tool for most of the organizations, including notfor- profit ones. The paper focuses on specifics of the budgeting process, particularly the phase of drawing up the budget, in non-governmental organizations (NGOs). Based on the research, the paper identifies main types of budgeting process reflecting NGOs' financing models, and controlling tools used in planning and budget control.