Czech Financial and Accounting Journal, 2014 (vol. 2014), issue 1

A s novým rokem přichází nové zákony

Petr Marek

Český finanční a účetní časopis 2014(1):4-5 | DOI: 10.18267/j.cfuc.376  

Use of Forward Interest Rates and Forward Exchange Rates for the Valuation of Currency-Interest Rate Derivatives

Jaroslav Brada

Český finanční a účetní časopis 2014(1):6-18 | DOI: 10.18267/j.cfuc.377  

The article describes the procedures by which you can appreciate the potential receivables and payables, whose size depends on interest rates (reference interest rates e.g. 1M USD LIBOR) or reference exchange rates. The article describes the procedure, which enables to estimate price of conditional flows of payments having the character of OTC currency options or interest rate options. The reader is shown procedures for estimating the forward interest rates and forward exchange rates and it is shown how to estimate the forward rate and forward exchange rates used in the valuation of OTC options - European and American (US) currency call and put options,...

Comparison of the Effects of Foreign Direct Investment on the Current Account of the Balance of Payments of the Czech Republic and Slovakia after the Accession to the European Union

Jana Marková

Český finanční a účetní časopis 2014(1):19-33 | DOI: 10.18267/j.cfuc.378  

The transformation process in market economies is inherently connected with the inflow of foreign capital, which replaces the missing domestic resources. This also applies to the Czech and Slovak economies, whereto the capital primarily in the form of foreign direct investment has flown since the early nineties. The following article is devoted to the comparison of the impact of these investments on the external balance in terms of the balance of payments in both countries after their accession to the EU. It deals with the impact of revenues from foreign direct investment on the current account deficit of the balance of payments and methods of its...

FED and the US Government Cooperation Effort to Absorb the Financial Crises Impacts

Vojtech Dohányos

Český finanční a účetní časopis 2014(1):34-49 | DOI: 10.18267/j.cfuc.379  

The financial crises in 2007 and 2008 showed that pure FFR corrections are insufficient and are not providing the desired goals in the GDP evolution and the other macroeconomic indicators. FED had to buy out some financial institutions, because the financial sector was one of the most impacted sectors during the financial crises and this sector of the economy infected the real economy. Toxic asset buy outs and direct lending by FED were the best steps taken and even statistics is confirming it. Direct monetary base increase had the biggest impact on the GDP evolution. Bank liquidity replenishment allowed financing the investment projects and also consumption...

The IFRS Adoption and Its Impact on Financial and Management Accounting

David Procházka

Český finanční a účetní časopis 2014(1):50-60 | DOI: 10.18267/j.cfuc.380  

Traditionally, management and financial accounting were two relatively independent information systems. In the transition countries, financial reporting is heavily influenced by tax legislation, which impairs the usefulness of financial statements for external users. Entities are then forced to remove those lacks in management accounting in a great extent to obtain useful information for the internal decision-making. A separate coexistence of management and financial accounting is then inevitable. The IFRS adoption has increased the quality of financial reporting in transitional countries, despite significant implementation costs. To lower the cost...

"Negative" Amount of the Investment Accounted for by Equity Method

Vladimír Zelenka

Český finanční a účetní časopis 2014(1):61-71 | DOI: 10.18267/j.cfuc.381  

In case of negative amount of total equity can occur phenomenon 'negative amount of investment' in application of equity method, in its developed as well as undeveloped form. 'Negative investment' doesn't comply with definition of asset in internationally respected standards of financial reporting (e.g. Conceptual Framework of IFRS). It is possible to recognize 'negative investment' as liability only to the extent that the investor has incurred obligations due to negative equity of the associate or joint venture. The equity method is applicable not only for ordinary shares but also for other parts of the net investment in the entity. The method is...

The Level of Knowledgeableness of Insurers about Insurance Value within Business Insurance against Natural Disasters in the Czech Republic

Lenka Přečková

Český finanční a účetní časopis 2014(1):72-86 | DOI: 10.18267/j.cfuc.382  

This article elaborates on how information is provided in the terms and conditions of various insurers and how it is related to one of potential demonstrations of information asymmetry. The aim of this article is to evaluate the level of knowledgeableness in the insurance conditions of the characteristic insured value within insured property. The research was carried out till the date Dec 1, 2013.This article analyses the supply side of the insurance market, i.e. insurers, evaluating how insurers inform their clients of the characteristic insured value. Evaluation of the rate of knowledgeableness is achieved by the method of comparison of the standard...

Changes in Tax Mixes of European Union Countries in Crisis

Květa Kubátová, Aneta Borůvková

Český finanční a účetní časopis 2014(1):87-104 | DOI: 10.18267/j.cfuc.383  

This aim of the article is to verify whether the crisis period 2008/2009 compared to the pre-crisis period of 2006/2007 significantly changed the average proportions of the main groups of taxes in EU countries, and whether development in tax mixes meet objectives of tax policy. It was found that a statistically significant increase occurred in the area of tax quota, significant change in the social security contributions, and significant decrease was observed in indirect taxation. The proportion of direct taxes also fell, but the decreasing is not statistically significant. The share of corporate tax revenues declined significantly, while personal...

Proposal of Amendments of the VAT - Directive in Respect of the Taxation of Travel Services

Milena Otavová

Český finanční a účetní časopis 2014(1):105-117 | DOI: 10.18267/j.cfuc.384  

The paper examines the principle of special procedure of a travel agent (travel services) with regard to both the Czech VAT Act and the VAT-Directive, where is a visible discrepancy in the definition of "customer". Based on the model examples the advantages and disadvantages of both procedures are evaluated and consequently the amendments of the VAT-Directive are recommended. Based on the comparison and processing differences found by using standard scientific methods is possible to formulate the proposal of amendments of the VAT-Directive. The aim is to determine the impact on tax base of taxpayer providing travel agent in the case of applying the...

120 Years of (Non) Issue of the Czech Translation of the book "Treatise on Accounting" by Luca Pacioli

Miloslav Janhuba

Český finanční a účetní časopis 2014(1):118-124 | DOI: 10.18267/j.cfuc.385  

The first printed textbook of double entry bookkeeping in the world, "Treatise on Accounting" by Luca Pacioli, was published as part of a mathematic textbook Summa de Arithmetica, Geometria, Proportii et Proportionalita in Venice in 1494, which is 520 years old this year. Thanks to Czech accounting historians, K. P. Kheil jr. (1843-1908) and H. Raulich (1866-1940) is for a Czech reader interested in accounting history available today in addition to the original text, as well as Italian, French, German, English and Russian versions, also Czech versions of Treatise Pacioli. Journey to the Czech translation was not easy. For the Kheil's translation remained...

Concept business (enterprise) or plant

Hana Vomáčková

Český finanční a účetní časopis 2014(1):125-131 | DOI: 10.18267/j.cfuc.386  

For accounting, but also for other economic and legal disciplines is important to define the basic unit in business and in related areas of accounting, financial management, valuation, determination of general legal frameworks and regulation of business. Practice and theory of evolution came to a Company. The Company is perceived as a complex relatively independent economic unit. Czech civil and commercial law of 2014 introduced the term Plant. Accounting standards, respectively and other standards are mechanically adjusting. Recodification of the term reflects the currently applicable civil and commercial law. The term Company (Business, enterprise),...

Impacts of the New Civil Code into Financial Statements - Financial Reporting of Earnest

Michal Svoboda

Český finanční a účetní časopis 2014(1):132-139 | DOI: 10.18267/j.cfuc.387  

The New civil code in the Czech Republic re-implemented earnest into legislation. This article handles with this instrument - substance of earnest, its functions which are important for the decision on accounting treatment of earnest (proof, secure and penalize). Also distinction between earnest and a common prepayment (provision) and polemics on what could be the substance of an earnest have been made. A method of combining current actual resources with historical resources esp. from the 19th century has been chosen to comprise maximum knowledge and experience with earnest from that times because of lack of useful actual information. This kind of...

The Relationship among Profitability, Liquidity and Gross Domestic Product in Condition in the Czech Republic

Petra Růčková

Český finanční a účetní časopis 2014(1):140-147 | DOI: 10.18267/j.cfuc.388  

Competitive environment enables healthy operation only to those companies that are able to perfectly manage not only the business side of the entrepreneurial activities (sale of products and services surely is purpose of existence of any company), but also the financial side which constitutes a significant part of strategic decision-making process. And thus, from the view of corporation operating, the most important parameters are profitability and liquidity. The emphasis is also put on aspects of development of economic cycle and trust indicators. The comparison was made on the level of business branches. The aim of the paper is to evaluate the practical...