The Croatian Standards of Financial Reporting have been published. The contents comprises the Framework, 17 Standards and the Glossary. The Decision was published almost two and a half months after their application had started. The Croatian Standards of Financial Reporting are according to the text of each standard to be applied for the period starting on 1 January 2008. The obligatory application of the CSFR is determined in the Accounting Act. This article provides a brief review of the requirements of the CSFR referring to the presentation of specific business events in the financial reports of companies.
In the business practice there are often transactions which begin in one accounting period and end up in the following accounting periods. The goal of deferred items is to divide such transactions, i.e. to record income and expenditures in the accounting period they actually refer to. This article deals with recording of deferred items.
A company is established by the sales of shares of the capital to the interested investors, which represents one of the steps of the company establishment accordingto the Companies’ Act. There are two main types of companies – an enterprise comprising a share holding company and a limited liability company and a partnership comprising a public liability company, a limited partnership and a business association. This article deals with the possible capital and equityalterations after establishment including the legally regulated taxes for such alterations.
At the end of the fiscal year, when financial and tax reports have been completed, all the documents and records are collected to be filed. Due to the fact that the obligatory period of filing of the accounting and tax documentsis ambiguous, this article explains the terms of filing and what to do with the documents after expiration of legal filing terms.
The article deals with the issues of the changed IAS no. 3 – Reduced Asset Value. The first problem arising from such evaluation is how to identify the assets the value of which can be reduced, whether these are internal or external indicators of the reduced asset values, the determination of the repayable value, the net sales prices and the use value, the discount rates of the I CAPM models, the recognition of the loss arising from the reduced value of the unit generating cash, the writing-off of the losses due to the reduced value, the tests of the reduced asset value or the accounting policies and publishing.
The Croatian accounting system is primarily defined according to the requirements of the Croatian Standards of Financial Reporting and the International Standards of Financial Reporting, whereas the EU accounting systemis regulated according to the guidelines, regulations and other legal documents of EU. Due to such a fact there is an issue of the compliance of the Croatian accounting system to the EU accounting system, which is the topic of this article. Although the new Accounting Act has come into effect, there is a possibility of determining that it has not been complied to the system of financial reporting in the EU.
The statistical reports for the period January – March 2008 are filed by the companies – entrepreneurs, who are according to the Art. 2 of the Accounting Act obliged to keep the business records in a double-entry bookkeeping, including the entrepreneurs in bankruptcy or liquidation process. The above stated reports are filed to the FINA in the TSI-POD Form (Statistical Report of Entrepreneur). This form is used by the craftsmen who are obliged to pay the profit tax. Upon the changes of the legal form (joining, merger) the obligation of preparation of the reports is taken over by the company which continues the business after the changed legal form.The article deals with the procedures of drawing up statistical reports.
The employees working at the work places harmful to their health and working ability, the insurees whose body functions deteriorate after a certain number of years due to the nature and difficult conditions of work as well as the insurees with various disabilities have the right to the accelerated retirement plan. The employer is obliged to stress in the retirement plan report that such employees have the right to the accelerated retirement plan and to pay additional contributions in the way and at the rates determined by the Act on Contributions for Obligatory Insurance.
Na svojoj redovitoj mjesečnoj sjednici održanoj 18.-22. veljače 2008. IASB je raspravljao o potrebnim poboljšanjima postojećih MSFI-a u 2008. godini, zatim o MRS-u 19 – Obveze prema zaposlenicima, konceptualnom okviru standarda, amandmanu na MRS 37 u dijelu koji se odnosi na obveze, zatim u obvezama i glavnici i ugovorima o osiguranju.
Investments represent one of the most important factors of economic and other types of development in the society. They refer to the future and therefore the analysis of the investments is actually a simulation of the future events which principally depend on the world trends but also on the social and economic environment in the country. After recognition of the Republic of Croatia the economy models changed introducing the open-market economy with primarily private ownerships, which caused considerable changes in the analysis of the investment process and required some new expert knowledge. The article deals with the new points of view referring to some basic issues of the investment processes which are not defined by the regulations but are based on the economic theory and the experience of the authorized investment project leaders.
The article deals with the problem of misbalance of the real and financial sectors of the Croatia’s economy. Despite the substantial growth rates, the stable domestic currency, liberalization of the current and capital transactions, the beginning of the structure reforms and the compliance to the EU legislation, the Croatian financial system and the real sector are not balanced and do not guarantee a long-life stability without crises. The problem of the safety of bank portfolios and the stability of the financial system will escalate if the prices of real estate considerably fall, which would enable to the banks to compensate the loan placements without substantial losses through the forced sale of collaterals.
Bank operations can not be carried out without their organization units. The task of the bank organization units is to cover particular regions and their function comprises decentralisation of bank operations. They are referred to as profit centres, branch offices, commercial centres, etc. No matter which of the above stated names is used in practice, each of them represents a bank profit centre and therefore this term is used as a synonym for the bank organization units which provide services to clients in particular regions.
The foreign currency exchange operations in the Republic of Croatia are regulated by a number of acts and by-laws. The foreign currency exchange operations can not be performed without authorization of the Croatian National Bank. It gives authorization to perform these operations to banks, savings banks and credit unions within their general work permit, where as the authorized exchange offices receive a special authorization which allows foreign currency exchange operations only. The article deals with the regulations referring to foreign currency exchange operations as well as the obligations to provide business reports.
Within the VAT Systems the entrepreneurs – tax payers engaged in production activities have the same taxation status as the entrepreneurs engaged in service activities. In view of the taxation of maintenance and repair services the type of goods is not important any more – machines, automobiles included in the entrepreneur’s assets or a private property of the final customer.The author of this article writes about the specifics of VAT payment in service activities.
This article deals with the application of the special taxes on automobiles, motorcycles and aircrafts which are imported or produced and sold in the Republic of Croatia referring to the Act on Special Taxes on Automobiles, other Motor Vehicles, Vessels and Aircrafts. There are the examples of the calculations of import duties for automobiles, motorcycles and aircrafts which are included in the customs procedure before they are put into service. The article analyzes the process of homologation, since the import of motor vehicles is allowed only if the conditions referring to homologation have been fulfilled.Therefore, the customs procedure cannot be carried out without the necessary documentation.
The taxation of inheritance and gifts in the Republic of Croatia is carried out through the application of two differentacts. The taxation of inherited or gifted real estate is regulated as any other real estate transfer, namely by the Act on Capital Transfer Tax. Inheritance and gifting of cash, cash receivables and movables are subject to the clear inheritance and gift tax regulated by the Act on Financing Localand Regional Governments. Therefore, this article deals with the taxation of the inheritance and gifting of real estate separately from the inheritance and gifting of other assets.
Foreign share holders in the Croatian companies and funds can according to certain regulations transfer the realised profits into their own countries. Although the Croatian regulations are rather liberal in view of this issue, this article deals with the tax and legal provisions and other types of earnings made by foreign companies and physical persons in Croatia. The article deals with the conditions of profit transfer for the countries which are the largest investors or business partners of Croatia.
Autor: Dr. sc. Vlado BRKANIĆ, ovl. rač. i ovl. rev.
The business operations on the global market require the application of new technologies to which companies have to adjust constantly in order to achieve and maintain competitiveness. Electronic business operations, especially the Internet Sales is one of the conditions which have to be fulfilled by all those who wish to offer their products and services to the wide range of prospective customers. This article deals with a simple and transparent way of how and under what conditions to perform the activities of electronic sales, which liabilities the salesmen have and what are the consumers’ rights when shopping through Internet.
The employer who recruits a disabled person and a self-employed disabled person have the right to regular and special incentives. The article deals with the special incentives which can be received upon employment or self-employment of disabled persons and presents comments to the application of the regulations referring to the above stated incentives.
There are various life and legal situations in the working environment which result in legal suits between the employer and the employees and end up at the courts authorized for labour litigations. Due to the fact that such situations are various in terms of their characteristics and elements, these courts have to focus on the specific case separately. Never the less, the court practice can provide useful guidelines for the proper and legal acts of employers in similar cases. The article deals with three cases at the Supreme Court of the Republic of Croatia.
On 1 April 2008 the Act on Amendments of theCompanies’ Act came into effect, except for the regulations referring to the joinings and mergers over the border which will come into effect when the Republic of Croatia enters the European Union. The necessity of compliance of this and many other Croatian acts to the guidelines of the European Union, the development of the market-oriented economy, the implementation of the new legal standards, the prevailing trends and the current economic atmosphere as a whole resulted in the requirement for the repeated amendments of the Companies’ Act.
Being competitive is today not the issue of success but the issue of survival on the market. The creation and constant growth of competitiveness have become a key task of the contemporary strategic entrepreneurship. Besides flexibility, innovativeness and quick reactions to business opportunities the strategic entrepreneurship requires a simultaneous development and growth of competitive advantages, which enables the growth and development of the company in the future. Therefore, the determination of the strategy of growth and development of a small business, strategic planning of development and drawing up of operational and business plans make up the key activities of the strategic entrepreneurship.
The article deals with the practical solutions of recording in the budgetary accounting referring to the business event of the long-term assets with the net value up to 2,000.00 HRK. It also includes the bookkeeping procedure upon writing off of long term non financial assets.
Autor: Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
A public purchaser must clearly and understandably describe the purchase item, so that the tenderers could offer their goods, services and work comparable in terms of types, quality and prices as well as other necessary characteristics and conditions. The amount of the estimated value of the purchase item is based on the entire amount without the value added tax (VAT). Upon such calculation of the estimated value a placer of order should take into consideration the entire value of the purchase including all the options and possible extension of contracts. The topics of this article are how to determine the purchase item, how to estimate its value and is it necessary to draw up a plan of public purchase.
The Act on Public Purchase includes three new types of the public purchase process: the framework agreement, the electronic auction and the dynamic purchase system. The use of such purchase processes, especially those using the modern electronic technology, considerably contributes to the transparency, accelerated purchase processes through the reduced terms of the offer deadlines as well as to the more efficient spending of the financial assets for purchase.
In the field of the internal financial control in the public sector the Minister of Finances passed in March 2008 two new regulations: the Rulebook on Internal Audit of Budget Beneficiaries and the Rulebook on Financial Management and Control. The author of the article writes about the internal audit, the financial management and control of the budget beneficiaries.
