Czech Financial and Accounting Journal, 2014 (vol. 2014), issue 2

Stalo se to před sto lety

Petr Marek

Český finanční a účetní časopis 2014(2):4-5 | DOI: 10.18267/j.cfuc.389  

Notes to some types of external frauds from the perspective of criminal legislation in the Czech Republic

Vladimír Králíček, Jan Molín

Český finanční a účetní časopis 2014(2):6-17 | DOI: 10.18267/j.cfuc.390  

This paper deals with the external cases of fraud from the perspective of criminal legislation in the Czech Republic. In the first part we define the term fraud and fraudulent behavior is briefly described and the possibility of breakdown of fraudulent conduct on the internal fraud and external fraud and then to the unauthorized disposal of assets, fraudulent financial statements and corruption. In the main part of the paper (Chap. 3) are described the most common types of fraudulent activities, which are in terms of its content and the hazards considered as crimes.

Changes of Control and Joint-control Approaches

Marie Zelenková

Český finanční a účetní časopis 2014(2):18-30 | DOI: 10.18267/j.cfuc.391  

Definition of control and join-control changed during last years in both Czech accounting legislation and International Financial Reporting Standards. This paper deals with character of these changes. This paper also includes comparison of current treatment of control and join-control according to the Czech legislation and according to IFRS. Illustrative examples and cases indicate critical points where are found the substantial differences between Act on Business Corporations as amended with the Czech accounting legislation and IFRS 10 and IFRS 11 respectively. This paper also collates definition of control according to the Act on Business Corporations...

Domestic versus Foreign Companies in the Construction Sector in the Czech Republic and the Slovak Republic

Michaela Roubíčková, Eduard Hyránek, Ladislav Nagy

Český finanční a účetní časopis 2014(2):31-40 | DOI: 10.18267/j.cfuc.392  

Building industry is an important indicator of the business cycle of the economy, because it is tied to movements and variations in the national economy. Building industry reacts directly and flexibly to any changes in the economic cycle and has multiplying effect on the development of other sectors. Investment in building industry actually causes the entire chain in the economy demand for goods and services, which is reflected especially in the activities of economic entities in employment, but also in public budgets. The aim of the article was to analyze and evaluate the development of the construction sector in the Czech and Slovak Republic. The...

International Trade after the Crisis: new financing possibilities

Eva Černohlávková, Eva Křenková, Michal Nejedlý

Český finanční a účetní časopis 2014(2):41-51 | DOI: 10.18267/j.cfuc.393  

The globalization of the economy during the last two decades was characterised by the growth of international trade volume and changed the pattern of its territorial structure. This development has been supported by the increasing role of global supply chains, by the implementation of modern IT technologies and was reflected in trade finance. The shift from traditional banking instruments to open account trade was in the long term obvious. The economic environment of the last financial and economic crises brought the necessity of more effective cash management, payment risk mitigation and reduction of operating costs. The BPO represents a resilient...

The Principal-Agent Theory and its Influence on the Quality of Assurance Services

Michal Bobek

Český finanční a účetní časopis 2014(2):52-68 | DOI: 10.18267/j.cfuc.394  

The article deals with the principal-agent theory and its application on provision of the assurance services. It describes influence which the principal-agent theory might have on the quality of information provided by the assurance services. The article defines stakeholders and shareholders of a company and their role in relation to provision of the assurance services, and then briefly presents the principal-agent theory. The influence of the principal-agent theory on the assurance services is ultimately studied in two ways, based on whether the subject who ordered the service is the main user of the provided information, or not. The agency costs...

Macroeconomic Determinants of Firms' Default in the Czech Republic

Petr Jakubík, Tatiana Škerlíková

Český finanční a účetní časopis 2014(2):69-80 | DOI: 10.18267/j.cfuc.395  

This article deals with firms' defaults and empirically tests its key macroeconomic determinants. The conducted empirical analysis employs quarterly time series of the number of insolvency petitions filed in the period 1996-2009. The obtained results point out prediction ability of the growth rate of real consumption and investment, change in the growth rate of real foreign demand, interest rates, change in the growth rate of the nominal exchange rate and change in the growth rate of real wages on firms' defaults development. The study confirms a strong link between firms' bankruptcy rates and the macroeconomic development in the Czech economy.

Asymmetric information within Initial Public Offerings

Monika Janičíková

Český finanční a účetní časopis 2014(2):81-91 | DOI: 10.18267/j.cfuc.396  

Asymmetric information is a part of market failure. It leads to market imperfections and inefficiency of economic markets. We can meet serious asymmetric information in initial public offerings when companies go public. In IPO process, better-informed party can take an advantage considering new potential investors. Asymmetric information could be identified in IPO timing decisions and we can analyze it by effects on underpricing and underperformance factors. This study deals with asymmetric information's influence on IPO timing, signaling in IPO and underperformance of IPO.

Cost of Service Approach to the Measurement of Public Expenditure Incidence

Barbora Slintáková

Český finanční a účetní časopis 2014(2):92-105 | DOI: 10.18267/j.cfuc.397  

Research on public expenditure incidence is not as extensive as the tax incidence study even though it is important as well. The problem of the public expenditure incidence is identification of individuals on whose behalf public expenditures are made and calculation of their benefits. There are two ways how to approach to this problem. The behavioural approach is theoretically pure but it is very demanding for data. That is why the benefits are approximated with budget amounts in the cost of service approach. This paper distinguishes this approach from the behavioural one and describes its limitations. Then it provides details about the procedure of...

Redistributive Effects of Public Health Insurance in the Czech Republic

Eva Gajdošová

Český finanční a účetní časopis 2014(2):106-118 | DOI: 10.18267/j.cfuc.398  

The paper is based on a scientific article in which the authors tested the hypothesis that when the system of health insurance has ceiling and is used as the main source of financing health care, so it has regressive effect on redistribution. This statement is verified on public health insurance in the Czech Republic in 2011. This question is very current today in the Czech Republic due to a possible re-introduction of a maximum assessment base and its potential impact on redistribution. The thesis also discusses other insured persons - self-employed persons, persons without taxable income and state insured persons. In the last part is analyzed the...

Mergers in Slovak - Tax and Accounting Treatment

Jana Skálová

Český finanční a účetní časopis 2014(2):119-130 | DOI: 10.18267/j.cfuc.399  

Cross-border mergers are regulated in directives of the European Union. The aim of the Directive is to eliminate obstacles to the free movement of capital between Member States. Despite this effort, cross-border mergers rarely used. The reason for this may be the difference in the accounting and tax treatment between countries. At present, the most common cross-border mergers are the mergers between Czech and Slovak companies. The paper analyzes the accounting and tax implications of mergers in the Slovak Republic. Attention is paid to the differences in approach to the reporting of goodwill and the option for taxation of the income tax differences...

Does New European Directive Change Czech Accounting?

Libuše Müllerová

Český finanční a účetní časopis 2014(2):131-140 | DOI: 10.18267/j.cfuc.400  

The article deals with new directive of European Parliament and Commission which has been approved on June 26th 2013 and regulates annual financial statements and consolidated financial statements. Member countries of the EU are obliged to adapt their domestic legal and administrative regulation to the framework and content of the EU Directive. The article examines conditions of such adaptation, compares current practice in the CR with the aims of the Directive and identifies the differences between them. The article comes to the conclusion that most of the domestic regulatory items correspond to those ones suggested by the EU Directive.

Valuation of Assets upon Bankruptcy in the Czech Republic

Monika Randáková

Český finanční a účetní časopis 2014(2):141-145 | DOI: 10.18267/j.cfuc.401  

One of many options how to solve debtor´s decline in Czech Republic is to proclaim bankruptcy. This option is closely related with converting all company assets into cash and using these funds to relatively satisfy all creditor´s claims. This article deals with using most appropriate methods of the company´s assets valuation in bankruptcy, furthermore it deals with reflection of changes in asset´s valuation into company´s accounting and bookkeeping during bankruptcy. To estimate the value of the asset, which is determined to be sold only during irregular conditions, is needed to consider all significant and determining factors if that is possible....

The Audit of Public Interest Entities in the Spotlight European Union

Václav Černý, Jaroslava Roubíčková

Český finanční a účetní časopis 2014(2):146-151 | DOI: 10.18267/j.cfuc.402  

The article introduces the current Directive of the European Parliament and of the Council 2006/43 of 17 May 2006 on statutory audits of annual accounts and consolidated accounts and the Regulation of the European Parliament and the Council N. 537/2014 of 16 April 2014 on specific requirements regarding statutory audit of the public interest. N. 537/2014 Regulation should enter into force on 16 June 2016 Both standards are expressing increased interest of the European Union on the issue of the audit and in particular the audit of public interest entities.

Fundraising Methods and Tools According to Donors

Pavlína Köhler

Český finanční a účetní časopis 2014(2):152-161 | DOI: 10.18267/j.cfuc.403  

Nonprofit nongovernmental organizations are important areas of the economy. Fundraising is closely related to the activities of NGOs in providing the financial resources for its functioning. The aim of this paper is an overview of possible ways to create a fundraising tool that organizations use, or may use to obtain funds from various donors. The list is processed through the analysis of literary sources, websites and other information sources, and includes two dozen different ways to reach donors from a personal letter, through public subscription, to the lottery. The second sub-objective was to evaluate the use of fundraising methods of three Czech...