Czech Financial and Accounting Journal, 2014 (vol. 2014), issue 3

Integrované výkaznictví a zveřejňování nefinančních informací v Evropě

Marcela Žárová

Český finanční a účetní časopis 2014(3):4-6 | DOI: 10.18267/j.cfuc.404  

The Failure of Decision Usefulness Approach on an Example of the New Standard for Revenue Recognition

David Procházka

Český finanční a účetní časopis 2014(3):7-19 | DOI: 10.18267/j.cfuc.405  

The paper focuses on critical points of the decision usefulness approach to accounting. The decision usefulness approach may work under normal economic conditions for relatively uncomplicated spheres of financial reporting. However, under extreme conditions and/or for controversial issues, the standards setters may succumb to the lobby pressure exercised by the preparers of financial statements. A wide range of users, who may flourish from accounting information, is dispersed and thus they may lack willingness to pursuit benefits from new regulation. Contrariwise, companies are relatively homogeneous and small in number, so they have sufficient incentives...

Approaches to Revenue Definition and Recognition and Their Implications for Profit and Loss Measurement

Jaroslav Wagner, Petr Petera

Český finanční a účetní časopis 2014(3):20-33 | DOI: 10.18267/j.cfuc.406  

The paper concerns models of profit and loss measurement in accordance with various approaches to revenue definition and recognition. First part defines different models as a result of a theoretical experiment, regardless postulates and axioms applied in any economic disciplines. It aims to show - without any prepossessions - diversity of concepts that can be used for profit measurement. Second part deals with selected application problems of general models of revenues.

Elements of Financial Statement of Public Sector Entities Definition

Vladimír Zelenka

Český finanční a účetní časopis 2014(3):34-45 | DOI: 10.18267/j.cfuc.407  

Financial statements display the financial effects of transactions and other events by aggregating them into groups which have common characteristics. These broad groups are called the elements (building blocks) of financial statements. These elements are a base for recording, classifying and grouping financial data. Financial statements structured by these elements provide users with relevant information. Determination of these building blocks and their definitions for general purpose financial reporting by public sector entities are characterized by some particularities. Whereas definitions of assets, liabilities, revenues and expenses for public...

Cost of Financial Distress in the Cash Flow Model of Capital Structure

Tomáš Buus

Český finanční a účetní časopis 2014(3):46-58 | DOI: 10.18267/j.cfuc.408  

Since the Miller and Modigliani (1958, 1963) theory of capital structure the literature struggles to include cost of financial distress in the cash flow theories of capital structure. Besides that most of the recent models are static. Let us just remind the contributions by Cooper, and Nyborg (2006), Farber, Gillet, and Szafarz (2006), Qi, Liu and Johnson (2012) or Fernández's (2004, 2007) analysis of their predecessors' work. This paper brings dynamic, and risk consistent (in the meaning of return being purely growing function of risk), although regarding the quantification of financial distress cost somewhat simplified model. His advantage is simplicity...

The Problem of Churning Detection in Derivatives

Jaroslav Brada

Český finanční a účetní časopis 2014(3):59-74 | DOI: 10.18267/j.cfuc.409  

The paper shows the way you can in forensic practice solve problem of proving the existence of excessive trading (churning) in client securities account held by securities dealer. Mentioned securities account held derivatives also. Derivatives are especially futures, options and ETF funds that invest a substantial portion of its own assets in futures and options. Furthermore, the work describe how it is possible in the forensic practice prove the "control of trader over customer account". It is also discussed the issue of calculation of indicators (esp. Cost to Equity) and the absence of clear algorithms that describe how the calculations of indicators...

Financial Derivatives Notation According to Maastricht Criteria after the ESA 2010 Implementation

Petr Pavelek, Miroslav Titze

Český finanční a účetní časopis 2014(3):75-90 | DOI: 10.18267/j.cfuc.410  

Shifting to the ESA2010 is going to introduce new statistical treatment with interest under swaps and forward rates agreements (FRA) which will be further not part of the Excessive deficit procedure. The objective of the article is discuss financial derivatives notations from statistical and debt management point of view after the ESA2010 implementation. The paper also discusses potential impact on the recorded fiscal deficit and debt management strategy after implementation. The structure of the article is following: the first part reveals needs for the different treatment of financial derivatives in national accounts and Excessive deficit procedure,...

The Position of the Czech Republic at the International Monetary Fund

Jana Marková

Český finanční a účetní časopis 2014(3):91-106 | DOI: 10.18267/j.cfuc.411  

The following article first discusses the first membership of Czechoslovakia in the International Monetary Fund in the years 1945 - 1954 and describes the circumstances of our exclusion from this institution. Czechoslovakia was one of the founding countries of the Bretton-Woods institutions and our position at the IMF was initially very good. The change of political and economic orientation after February 1948 led to a gradual deterioration of our relations with the IMF, which ultimately resulted into our exclusion from both institutions. Next part of the paper is devoted to the position of the Czech Republic at the IMF since the restoration of its...

International Accounting Standard 2 - Inventories and Czech Accounting Legislation

Bohumil Král

Český finanční a účetní časopis 2014(3):107-121 | DOI: 10.18267/j.cfuc.412  

The aim of the submitted article is to describe on the basis of evaluation basis principle requirements of IAS 2 - Inventories for definition, valuation a disclosure of this part of inventories which is the subject of its solution, to compare them with the analogical requirements of the Czech accounting legislation and national accounting standards and submit suggestions for the update of the Czech accounting legislation and standards for a future. The article concludes that IAS 2 - Inventories is in many regards respected and applied also in the Czech accounting legislation. The standard, however, brings some inspirations to its precision - especially...

Cross-Border Mergers & Acquisitions Performance Measurement

Hoang Long Pham

Český finanční a účetní časopis 2014(3):122-131 | DOI: 10.18267/j.cfuc.413  

Mergers and acquisitions (M&A) have been long attracted interest from academics. Especially the performance of cross-border mergers and acquisitions is a popular research topic in recent years. Researchers have come up with various criteria to evaluate M&A performance. There are inconclusive results on the literature on the consequences of cross border mergers and acquisitions (M&A) on corporate performance. This paper investigates and summaries the three most widely used measures of M&A financial performance, namely accounting-based measures, market models-based measures and managers' subjective assessments and its effects on the financial...

Integration of Economic and Property Crimes in the Tax and Accounting Context in the Secondary Education

Martin Polák, Kateřina Berková

Český finanční a účetní časopis 2014(3):132-149 | DOI: 10.18267/j.cfuc.414  

The paper provides the analysis of the current status of education of economic and property crimes in the tax and accounting in the context of secondary education. Monitoring is carried out on the basis of an analysis framework educational programs and questionnaires. The paper is the continuance of the previous research in relation to teaching accounting at the business school. The paper deals with inclusion of the issue to the curriculum of secondary business schools, expertise of teachers and curriculum content. The analysis showed that the issues are not included properly in a degree which would allow the development of economic thought of students...

Appraisement at Transformation of Commercial Corporations after Czech Law up Recodification

Hana Vomáčková

Český finanční a účetní časopis 2014(3):150-155 | DOI: 10.18267/j.cfuc.415  

After recodification Czech law there has been problem in commercial and accounting law with using accounting purchase method and acquisition method. Too in one's behalf transformation - reorganization is in commercial law and in accounting norms used purchase method and acquisition method. Starting balance sheet successional corporation doesn't need to then fair and true view financial situation. Starting balance sheet then embodies overvalue assets and overvalue shareholder´s capital.

Financial Statements in the Czech Republic - Broken Going Concern Assumption

Jiřina Bokšová, Monika Randáková

Český finanční a účetní časopis 2014(3):156-164 | DOI: 10.18267/j.cfuc.416  

Czech accounting legislature defines regular, extraordinary and interim financial statements. Interim financial statements are important information source for management purposes, however for extraordinary situations there is necessary to prepare extraordinary financial statements. The main purpose of presented financial statements (regular, extraordinary, or interim) is to provide necessary information for external users. For this reason there is necessary to provide true and fair view within these statements. Upon bankruptcy proceedings this rule cannot be expected as going concern rule is broken.

The Position of Companies in the Czech Republic and Great Britain in the Years 2012-2013 to Corporate Governance

Robert Jurka

Český finanční a účetní časopis 2014(3):165-176 | DOI: 10.18267/j.cfuc.417  

This paper deals with the development of corporate governance in companies in the Czech Republic and Great Britain in 2012-2013. Aim of this paper is not only to become familiar with the basic regulations of the issue, but also draw attention to the state of corporate governance in the area of audit committees, remuneration and nomination committees and internal audit in these countries. Article compares developments in the implementation of audit committees, remuneration, nomination and internal audit of selected listed companies on the Prague Stock Exchange in 2012 and 2013.