Czech Financial and Accounting Journal, 2021 (vol. 2021), issue 3

Articles

Business combinations under common control

Adéla Schrecková

Český finanční a účetní časopis 2021(3):5-19 | DOI: 10.18267/j.cfuc.562  

This essay deals with business combinations under common control and discusses possible accounting treatments depending on needs of users of financial statements. First, general methods used for business combinations are described, then it comes closer to business combinations under common control underlining their specific characteristics and how these should be treated in financial statements in various situations (e.g. a non-controlling interest involved, a simple reorganisation within a group). In the end, it shortly outlines some of different approaches in various countries to emphasize the need of unification of accounting methods and enhancing...

Resolving of failing financial institutions: from bail-out to bail-in

Lukáš Fiala

Český finanční a účetní časopis 2021(3):21-39 | DOI: 10.18267/j.cfuc.563  

The article deals with the issue of TLAC and MREL capital requirements as a tool safeguarding the sufficient level of absorbing and recapitalization capacity of failing banks. The contribution is three-fold. Firstly, the article provides comparative analysis of TLAC and MREL and identify the main differences associated with scope of eligible institutions, eligible instruments subordination requirements and the required limits of the standards. Secondly, we identify main differences resulting from the revision of BRRD with respect to areas mentioned in comparative analysis. Thirdly, the article presents descriptive analysis of the CNB´s approach to...

Redistributive effects of the Czech pension system – microeconomic approach

Alena Vančurová, Eliška Čejková, Stanislav Klazar

Český finanční a účetní časopis 2021(3):41-59 | DOI: 10.18267/j.cfuc.564  

The burning issue within the pension system in the Czech Republic is the level of coverage of self-employed persons. According to the data, they constantly report their income near the level of minimal basis during their lifetime. We estimate the replacement rates, lifetime benefit and lifetime contribution index using updated unique dataset of Assessment Base for Pension Insurance to shed the light on this problem. We can sum up that the income distribution of self-employed persons is highly concentrated, with the peak at the profit level which corresponds with the minimal base for pension contribution. Due to the high degree of the Czech pension...