Purchase and sales of goods in transit is a simple business event. However, there are frequent questions how such a business event is to be recorded in book-keeping. It refers to the supply of goods which are not storaged but directly delivered to the buyer. In some cases such a business is completely performed abroad. The article presents the necessary documents for such a business deal, the taxes to be paid, etc.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
A limited liability company can buy off the stakes from its company members, in which case the number of stakes is reduced and the rights and obligations from the purchased stakes are in grace period. According to the Companies Act it is possible to buy off company's own stakes from company members if they do not want to be company members any more or due to some other reasons. The structure of the company's capital ownership is thus changed. The article presents the accounting procedure referring to buying off own business stakes by a limited liability company.
Autori: Jasna VUK, dipl. oec. i ovl. rač. Dr. sc. Vlado BRKANIĆ, ovl. rač. i ovl. rev.
According to the requirements of the CFRS no. 7 and the IAS no. 40 companies can choose between the model of fair value and the model of expenses upon subsequent evaluation of investments in real estate. If the chosen model is afterwards replaced by the other model the accounting policy also changes and is to be applied according to the requirements of the CFRS no. 3 i.e. IAS no. 8. Due to the fact that according to the International Accounting Standards the replacement of the fair value model by the model of expenses is usually not accepted, the more usual procedure in the practice is the replacement of the model of expenses by the fair value model.
The obligation of consolidation of the financial reports is determined in the provisions of the Art. 16 of the Accounting Act. These reports are prepared by the parent company of the group. In their consolidated annual reports companies present the business results and the financial statements included in the consolidation as a whole. A consolidated financial report should comprise a review and analysis of development, business results and financial statements included in the consolidation as a whole. Such a report should also include financial and other indicators due to better understanding of business results and development.
This article presents the contents and legal basis for financial reporting of pension insurance companies and pension funds. The financial reports should be prepared for general purposes in accordance with the corresponding financial reporting standards. The beneficiaries of such reports are the HANFA (Croatian Agency for Supervision of Financial Services) and the Financial Agency for Public Announcement. The article also deals with the most important changes in the way of presenting financial reports according to the International Financial Reporting Standards.
According to the provisions of the Art. 20 of the Accounting Act companies are obliged to publish their financial reports. Accordingly, they have to deliver the determined financial reports and other documents to the Financial Agency. The deadline of delivery of the financial reports for the previous year is 30 June 2010. The deadline for publishing of the consolidated financial reports for the previous year for the companies obliged to prepare them is on 30 September of the current year. The article presents the procedure of drawing-up financial reports for publishing, the complete contents of the report, the ways of delivery of reports and the companies obliged to publish financial reports.
The budgetary units contain some business events which require specific book-keeping solutions such as the sales of long-term non-financial assets and the receipt of shares as a gift from a physical person. The article presents the examples of recording the above stated business events. It also points out the importance of determining the difference between the book value and the sales value of the long-term non-cash assets and the specifics of recording the shares received as a gift.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
The persons engaged in non-profit accounting are obliged to comply their accounting procedures with the provisions of the Directive on Accounting of Non-profit Organizations. Due to the fact that the Directive under certain circumstances allows the application of various approaches to the same topic, the persons obliged to apply it should decide which approach to choose in their accounting. The article presents an example of accounting policies for the persons engaged in non-profit accounting.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
The article presents the procedure of recording income of non-profit organizations made by the continuous payments of the members of such organizations.
Autor: Mirela GLAVOTA, dipl. oec., ovl. rač. i ovl. rev.
According to the new Labour Act, which became effective on 1 January 2010, the employer is in case of termination of the contract on employment obliged to pay to the employee the total amount of holiday bonus, which was not used. The article deals with the ways of determination of such a compensation and the tax position of such payment in view of the regulations regarding income tax and profit tax.
Accommodation services in commercial catering facilities can be provided directly or by mediation of a tourist agency. For determination of the tax position the most important thing upon signing a contract between a catering facility and the agency is to precisely state the services to be provided, the accommodation or rent as well as the clause on whose behalf and account the agency operates. The tax position of the stated service depends on such clauses.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
Besides the lump sum taxation of income realized by the provision of accommodation services in a family household, this type of service can be taxed as an income from independent activities. This obligation refers to the physical persons too who are either VAT payers or profit tax payers. The article deals with the specific of the tax position of this group of tax payers when they provide their services directly to guests or through mediation of a tourist agency.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
If a company performs business activities in the flat owned by the company member, the company member is regarded a renter and is obliged to pay income tax from property and property rights. He/she is obliged to draw-up the contract on rent with a company and register at the Income Tax Payers Register in the Tax Office in the area of his/her residence.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
Each successful project applicant who signs the contract on financing the project by non-refundable assets from the EU funds should respect the principles of public procurement. The beneficiaries of such funds are often institutions which are not obliged to apply the Act on Public Procurement. Even if they have to respect the provisions of the above stated Act, the y are often not familiar with the forms and procedures they have to use in realisation of the project for purchase of services, equipment and works, which they find rather complicated. Therefore, this issue requires a more thorough analysis. This article presents the rules of public procurement in the projects financed by the EU, the risks of the procedures of procurement and the most frequent mistakes made upon public procurement.
The latest data of the EU Statistical Bureau (Eurostat) show that the Greece's budget deficit compared to GDP in 2009 amounted to 13.6% ( which is worse than the estimates so far of 12.7%). The indebtedness of Greece in 2009 reached 273 billion Euros, which makes up 115% of Greece's GDP and thus extensively exceeds the Maastricht Criteria that allow state indebtedness of 60% of GDP to the maximum. In the attempt to find a solution for the crisis in Greece a bad news is the fact that among 27 EU countries, in which according to the Maastricht Criteria the budget deficit can only be 3% of GDP, such criteria are fulfilled by 5 member countries only. The author of the article comments on the rehabilitation of the public debt in Greece and the financial stability of the Eurozone and the European Union using the data from the Eurostat (EU Bureau of Statistics).
The European Union has established the program of crisis fund to save the Eurozone from the over-indebtedness and the measures for directives in economies of the EU countries. The measures, presented in the article, comprise: taxation of the risk capital, double-taxation, customs information, protection of investors, financing of projects in the Republic of Croatia, etc.
Compared to the year of 2008 the budget deficit and the public debt in 2009 increased not only in the Eurozone but in the EU countries 27 as well. In the same period the GDP decreased. The budget deficit in the Eurozone countries in 2008 was 2.0% of GDP, whereas it increased to 6.3% in 2009. In the same period the budget deficit in the EU countries 27 increased from 2.3% of GDP to 6.8% of GDP. The public debt in the Eurozone countries at the end of 2008 amounted to 69.4% of GDP, whereas it amounted to 78.7% of GDP at the end of 2009. In the same period the public debt increased from 61.6% to 73.6% of GDP in the EU countries 27. The author of the article analyses the data on budget deficit in the Eurozone provided by the Eurostat (EU Bureau of Statistics) on 22 April 2010.
The article analyses the status of a promissory note as a marketable security which had a specific and applicable role in the Croatian payment transactions taking into consideration the period in which such payment transactions were in use. The author presents a court practice referring to collection of promissory notes in the cases when there are no assets on the debtors' accounts. The article also provides a review of the new Act on Payment Transactions (which regulates the payment transactions in the country and abroad), which becomes effective on 1 January 2011. Accordingly, the promissory note will return within the framework of the Act on Promissory Note.
Besides reporting to the Croatian National Bank, some residents should keep the records on payment transactions with non-residents in a special form of business records. In such a case it is not important that the same business events are entered in some other business records as well. A supervision book represents a business record in the field of foreign currency operations, which has been kept for years. The way of recording has already been well-established, although there are some questions whether and how certain changes should be recorded in them. This article presents the principal regulations and replies to some questions.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
The new Regulation regarding the way of withdrawal and depositing foreign currency cash on the bank account became effective on 29 April 2010. It contains some new provisions compared to the standard foreign currency transactions. These provisions have been complied with the existing status of foreign currency operations. The basic provisions are: free collection and payment in cash abroad, determined deadline for depositing foreign currency cash on the bank account and foreign currency cash receipts.
The transfer of cash over the border, no matter of the currency, is supervised according to the Act on Prevention of Money Laundry and Financing of Terrorism. Such a supervision is closely connected to the regulations referring to foreign currency operations. According to the Croatian regulations each cash transfer of more than 10,000 HRK or this amount in a foreign currency should be reported. This obligation refers to the cash transfer over the border and into the Republic of Croatia.
The procedure of processing and verification of the received annual tax reports of small businesses has started, including issuing of the interim solutions on tax payment or taxable income or loss for the year of 2009. The article presents the processing procedure before issuing the solution according to the annual tax report of tax payers and the procedure of adjustment of tax records in the IT system of the Tax Administration with the data presented in tax reports.
Autor: Mr. sc. Mirjana MAHOVIĆ KOMLJENOVIĆ, dipl. oec.
The Rulebook on the way of labelling retail prices and prices per product and service units became effective on 6 May 2010. The Rulebook determines the way of labelling retail prices and prices per product and service units upon sales of products and provision of services to consumers. Salesmen should adjust their business operations to the provisions of the above stated Rulebook within one year after it became effective, i.e. until 6 May 2011. The article deals with the contents of the Rulebook.
Catering services in family households comprise accommodation services in a room, apartment or house, accommodation in a camp, breakfast, half-board or full-board services to the guests to which a renter provides accommodation services in a room, apartment or house. The above stated services can be provided by a physical person who is not a small business owner or a sole trader (renter). According to the Act on Catering Services the number of accommodation capacities provided by renter in family households has been reduced in order to prevent grey economy. According to the administrative measures a physical person shall within 30 days be forbidden to provide services if they are performed without a permit. The article deals in more detail with the conditions of provision of accommodation services in family households.
The new Labour Act, which became effective at the beginning of this year, determines the right to use annual holiday in a considerably different way compared to the old Act. Due to the fact that this is at present a current issue the author of the article explains the provisions of the new Act regarding annual holidays and provides some concrete replies to the questions that have arisen in practice.
In the case when the collective agreement for civil servants and employees determines the right to Christmas bonus, whereby the agreement parties mutually set the date and way of payment and the amount of Christmas bonus, and if they do not change them, it is regarded that both parties agree that the amount and the way of payment remain the same as in the previous year. The article presents some viewpoints from the court practice regarding labour disputes in view of the application of the collective agreement.
Although the members in a limited liability company are not as connected as they are in a partnership, a member cannot step down from such a company neither can such a company exclude the member at any time and in any way. According to the Companies Act there are two ways of stepping down or excluding the member of a limited liability company – according to the company's contract or constitutive claim at the competent commercial court if there is a justifiable reason for such an act. The article analyses the conditions, procedures and consequences of stepping down or excluding in view of both ways of stepping down of the member of a limited liability company.
State audit has a long tradition, especially in developed countries. Today, almost all the world countries have established such institutions which are obliged to inform the parliament and the public on the ways of spending the Budget assets and managing public property. They should develop their own methods of audit adjusted to the conditions under which they operate but in accordance with the International audit Standards. The article deals with the need of informing the public, the role of the State Audit Office in informing the Parliament and the public and spending of the Budget assets.