Czech Financial and Accounting Journal, 2015 (vol. 2015), issue 3

Pozice institucionálních investorů v ekonomice se nelepší

Jaroslav Daňhel

Český finanční a účetní časopis 2015(3):4-6 | DOI: 10.18267/j.cfuc.446  

Is a Full International Accounting Convergence Desirable?

David Procházka

Český finanční a účetní časopis 2015(3):7-23 | DOI: 10.18267/j.cfuc.447  

Referring to the Convergence Project of IASB and FASB, the paper focuses on an up-to-date issue, whether it is desirable to endeavour for a single global system of financial reporting standards. Albeit a full convergence is achievable both theoretically and practically, economic theory, analytical modelling and empirical accounting studies show that potential benefits of a single global system are lower than its costs. The main restriction on further convergence stems from the variety of informational needs by users of financial statements. To meet this changing demand, information strategies of preparers have to be flexible. One-size-fits-all approach...

Preparation of Consolidated Financial Statement of the Group with Cyclic Interests among Separate Entities

Marie Zelenková

Český finanční a účetní časopis 2015(3):24-42 | DOI: 10.18267/j.cfuc.448  

The paper deals with preparation of consolidated financial statements by the group with cyclic interests among three separate entities that constitute this group. The paper is focused on potential difficulties in reporting of consolidated equity and interests (shares) that were issued within the group and are in full or partly held by the group. The paper responses to the next fundamental questions: What is the amount of consolidated equity and what is the correct way to display these intra-group interests (shares) issued and hold by one of the separate entities included in the group. Effects of proposed solution are demonstrated in illustrative example.

The Government-Subsidized Supplementary Retirement Savings Scheme: Determinants of Participation Rate and Contribution Size

Petr Janský

Český finanční a účetní časopis 2015(3):43-55 | DOI: 10.18267/j.cfuc.449  

The article identifies characteristics of Czech individuals, which influence participation rate and contribution size in the government-subsidized supplementary retirement savings scheme, the 3rd pillar of the pension system. Using the representative sample of individuals, I show that men are by 8 percentage points more likely to participate in the 3rd pillar than women, but their average contributions are of similar size. Higher participation rates as well as contributions exhibit employees with higher incomes, older people and those working longer hours. More than a third (36%) of participants contributed 500 Czech crowns monthly to the 3rd pillar,...

Analysis of Compliance of the Act on Budget Allocation of Taxes in the Czech Republic with the State Aid Rules - A Time Bomb of Public Finances?

Jan Kožíšek, Stanislav Klazar

Český finanční a účetní časopis 2015(3):56-79 | DOI: 10.18267/j.cfuc.450  

The objective is to find out whether the Czech tax assignment bill does not breach, the rules of State Aid law of the European Union. The result is the current version of the tax assignment bill favors the economically most advanced region of the Czech Republic, from which the undertakings active in the city of Prague benefit, and that this favour breaches the rules of State Aid law. This situation meets the conditions for the incompatible state aid, for which the Czech Republic can be reprimanded by the European Commission. The controversial provision gives Prague a significantly higher conversion rate, which makes the income from shared-taxes per...

Revenue from Contracts with Costumers

Dana Dvořáková

Český finanční a účetní časopis 2015(3):80-96 | DOI: 10.18267/j.cfuc.451  

The target of this article is the comparison of accounting approaches to recognition, measurement, presentation and disclosure of revenues from contracts with costumers. Primarily, the approach of the new standard IFRS 15 Revenue from Contracts with Costumers is compared to standards which regulated this area before the adoption of this standard - namely IAS 18 Revenues and IAS 11 Construction Contracts. The significant benefit of IFRS 15 is the requirement for decomposition of transaction price on particular performance obligations, which are derived from the contract and the recognition of the revenue when a performance obligation is satisfied. The...

Basic Approaches to Profit-Sharing and Ideas for Utilization

Petr Petera, Jana Fibírová

Český finanční a účetní časopis 2015(3):97-117 | DOI: 10.18267/j.cfuc.452  

This article deals with profit-sharing, i.e. one of the possible types of group-based rewards for performance. In the introduction is defined profit-sharing and put into the wider context of rewards for performance. Because there are numerous types of profit-sharing plans, the key features, which distinguish these various types, are identified. On the basis of an extensive literature review are characterized the main effects of profit-sharing and mechanisms of their impact. It is pointed out that the decision on the adoption of "profit-sharing" and the implications of its implementation depend on several key factors. These factors are identified and...

The Quality of Audit Services in the Visegrad Countries

Marek Jošt

Český finanční a účetní časopis 2015(3):118-142 | DOI: 10.18267/j.cfuc.453  

The article focuses on legislative regulation of the quality assurance system of audit services provided by auditors and audit firms operating in the Czech Republic, the Slovak Republic, Poland and Hungary. These countries form an alliance of states called the Visegrad Four (hereinafter also the V4), which was established on 1st February 1991 as the original Visegrad Three. The cooperation in terms of the auditing profession takes form of annual meetings of front representatives of audit chambers of these countries to address current issues in the field of auditing. The main part of the article illustrates how quality assurance system works in each...