In accordance with the Program of Recovery of Economy accepted by the Government of the Republic of Croatia one of the most important issues is the fiscal policy of the country. The introduction of the new measures in taxation of income and profit is aimed at achievement of the partial balance in the tax burden of some categories of tax payers and collection of new assets in the State Budget. The new measures in income taxation are regulated by the Act on Amendments to the Income Tax Act. The article deals with the procedure of calculation of salaries for the persons employed from 1 July 2010 and other news in income taxation.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
Since 1 January 2005, when it became effective for the first time, the Profit Tax Act has been amended for four times. The last amendments become effective on 1 July 2010. The article presents accounting procedures referring to the amendments to the Profit Tax Act. Keywords:
Autor: Mr. sc. Đurđica JURIĆ, dipl. oec. i ovl. rač.
The author of the article explains the role of accounting estimates and their application aimed at fair presentation of the financial position, financial performance and cash flows of companies. Besides, the article defines the accounting procedures upon changes of accounting estimates in accordance with the requirements of the accounting standards.
In management structure of companies, depending on their size and organizational complexity, financial reports are prepared by the management, which send them to the supervisory board or the company's assembly for approval. In the period between the date of the approval of financial reports to be published and the date of the final acceptance certain business changes may occur and affect the financial reports for the previous year. The accounting standards applied in the Republic of Croatia (CFRS and IFRS) pay a special attention to the events which arose after the date of preparation of financial reports and the date on which their publishing was approved, regardless if such events are more or less favourable in comparison to the data presented in financial reports. Certain events require up-dates of published information, including the events to which the published data may not be adjusted.
Among numerous warehouse types regulated by the Directive for Implementation of Customs Act, the customs warehouse – type D is the most interesting to companies. The article states the reasons for such a choice, gives instructions how such operations should be entered into company's business records and which specifics should be considered.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
A web site represents and comprises a number of individual Internet pages of a company, services or products connected into a whole on the same Internet domain which usually refers to the same topic. A web site can be regarded as a portal if the access to information is provided through the logically connected applications. Therefore, from the accounting viewpoint a web site is difficult to differentiate from software. A web site does not have a physical characteristic and can help or lead to the achievements in business operations and promotion. A company's own web site can be recorded as intangible assets, cost of the period or as a deferred item depending on fulfilment of the criteria for recognition. A company can buy a web site or create it.
The article deals with recording of web sites in business records and their presentation in financial reports.
The author of the article explains the role of accounting estimates and their application aimed at fair presentation of the financial position, financial performance and cash flows of companies. Besides, the article defines the accounting procedures upon changes of accounting estimates in accordance with the requirements of the accounting standards.
The article deals with the discussions held in Germany regarding the reservations for annual holidays which were not used.
According to the Decision made by the European Court on 20 January 2009 and the Decision made by the Federal Labour Court in Germany on 24 March 2009 the right to annual holiday which was not exercised due to illness of an employee and his/her inability to work may be transferred. Such a Decision represents an exception to the court practice in Germany so far, since it was decided that an employee, who was not able to exercise his/her right to annual holiday due to a long-term illness, can exercise such a right.
The article presents current issues regarding balancing of reservations for annual holidays.
This workshop deals with two business events: cash withdrawal with credit card and donation of company's own long-term non-financial assets.
Cash does not have to be withdrawn for operating activities from the business account only, but also by means of a credit card. Cash can be withdrawn from the business account by a payment order or a credit card. Besides, the cash withdrawn can or does not have to be deposited in the till. Accordingly, the above stated activities are entered differently into business records.
In the budgetary system donations have their specifics. There are no obstacles for donating company's own long-term assets, which is however an exception, not the rule. Non-financial long-term assets can be acquired by acquisition only for the purpose of fulfilling the tasks of budget beneficiaries, not for donations.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
The organizations which keep their books within the system of non-profit accounting for the period January-June, 2010 have to prepare the report on income and expenditure.
The organizations established after 1 January, 2009 which according to their status are obliged to keep non-profit accounting should take into account that they have to apply double-entry book-keeping and prepare the reports on income and expenditure for the above stated period. They will not be able to submit them if they do not have the register number under which they are entered at the Ministry of Finance.
Autori: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev. Mirela GLAVOTA, dipl. oec., ovl. rač. i ovl. rev.
Expenses for business trips are calculated according to the credible travel order form enclosed by documents as a proof of expenses and other information stated in the travel order form. The article presents the examples of calculations and recording expenses for business trips of employees.
Autor: Mirela GLAVOTA, dipl. oec., ovl. rač. i ovl. rev.
If the collective agreement, company by-laws or a decision made by the employer include the provision of the right to the annual holiday bonus, the non-taxable amount of up to 2,500.00 HRK can be paid to an employee under the condition that such possibility has not already been used by payment of Easter bonus or Christmas bonus for the previous year paid in 2010 or alike. Besides, employees can receive a gift in kind up to the value of 400.00 HRK including VAT annually, without taxation, which can also be used for holidays. The article provides instructions how to pay a holiday bonus, how to calculate taxes and contributions in case of a gift in kind and/or cash above the non-taxable amount and how to record this.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
Scholarships represent a type of financial aid granted to individuals for the needs of their education or professional training. They can be granted for a specific college or academic degree or to support developing specific talents or achievement of sports results. As a rule, the right to scholarship is exercised according to the payer's will to make payment, which is determined by the specific regulation. In view of taxation there are certain conditions according to which such a payment can be tax-exempted.
The principle of keeping the tax secret is regulated by the General Tax Act, which should be taken into account upon taxation procedure. The article describes the procedure of tax body upon application of the regulation on keeping the tax secret.
The expenses for salaries mostly represent an essential item in the profit and loss account and therefore subject to a detailed analysis of an auditor. The expenses for salaries presented incorrectly could result in a substantial error in the company's financial reports. The expenses for salaries represent an item in the profit and loss account connected to the items in the balance sheet such as reserves, cash and liabilities to employees for salary payment. Accordingly, the above stated items should also be analysed upon audit.
The EU legislation discusses suggestions and makes agreements referring to speeding up the reform of financial regulations. The article presents viewpoints regarding the Aid Fund, the reform of the financial market, the derivative market, etc.
Revolving capital usually comprises reserves, receivables, listed securities and cash. The necessary amount of revolving assets depends on determination of the optimum structure in relation to the assumed short-term liabilities, the aim of which is to maintain liquidity and to achieve high cost-efficiency. A successful management of revolving capital ensures a positive cash flow and the ability to settle short-term liabilities. A business entity is liquid when it is able to convert its short-term assets into cash and cash equivalents, which should be sufficient to cover the assumed liabilities within the accounting period of one year.
The article deals with liquidity and the importance of managing revolving capital.
Entering a business relationship (loaning or sales) with a business partner always brings along a certain business risk. According to the worst scenario a bank or a company can have losses in their business operations due to uncollected receivables caused by the bankruptcy or liquidation of their business partner. Such a risk cannot entirely be avoided but it can be managed. FP RATING has been created with the aim of estimating the probability of blocking the giro-account – insolvency of companies.
Autori: Prof. dr. sc. Ivica PERVAN Dalibor FILIPOVIĆ, mr. oec.
The self-employed income tax payers exempt goods and services for several purposes (their own needs, entertainment costs, promotion, etc.). Depending on the purpose the procedures of applying the regulations on income tax and value added tax are different. The article deals with the cases when exemption of goods and services represents a receipt and when a tax non-recognizable expenditure. It also brings the news regarding taxation of self-employed activities in view of entertainment costs and promotion in 2010 including the new VAT Rulebook.
In view of the compliance of the Crafts Act with the Constitution of the Republic of Croatia the Constitutional Court of the Republic of Croatia made a Decision no. U-I-2771/2008 which cancelled the Art. 20, § 1 of the Crafts Act regulating the responsibility of crafts businesses for liabilities arising from operations. The above stated Decision actually confirmed the viewpoint, which is involved in other regulations too, that craftsmen are responsible with all their private property for the liabilities arising from business operations, not just with the invested assets necessary for performing business.
During summer there are increased sales of seasonal fruit and vegetables, mushrooms, cheese, honey, fish and other food products on benches and stalls at open-air markets and outside them, especially along the frequent motorways and on the public areas of tourist resorts. The article provides to sellers the information on the conditions and ways in which they can sell seasonal food including the obligations they have to consider.
According to the Act on Amendments to the Act on Catering Services the period of compliance referring to the accommodation facilities in the category Camps and Other Types of Accommodation Facilities has been prolonged. Accordingly, the advertising of illegal facilities is forbidden, the number of guests on family farms has been increased and the ownership condition for obtaining permits has been deleted. Some facilities in the category Camps and Other Types of Accommodation Facilities, Restaurants and Bars may obtain special standards and quality labels, the number of catering facilities has been increased, new authorizations have been given to trade inspectors referring to prohibition of illegal work and prohibition of overtime work and the obligations of the persons who camp illegally have been determined. The article presents the basic issues comprised by the new Amendments.
According to the provisions of the new Labour Act, which became effective at the beginning of this year, employers are obliged to make records on employees. Accordingly, the competent Minister passed one of the implementation provisions of the Labour Act – Rulebook on Contents and Ways of Keeping Records on Employees – which became effective on 1 June 2010. This article provides a short review of the provisions of the above stated documentation.
Handicapped children and their parents can exercise specific rights according to the Act on Obligatory Health Insurance and the Act on Maternity and Parental Needs. The specific rights according to the Act on Obligatory Health Insurance refer to the extended period of obligatory health insurance after the age of 18 or 26 as family members if they have the corresponding decision of the competent body. Accordingly, parents with handicapped children may, within the framework of the right to health care from obligatory health insurance, obtain the right to stay with their child (during the day or day and night) during hospital treatment of their child in the hospitals treating acute diseases as well as those treating chronic diseases, including the right to compensation of salary for sick-leave.
In practice there are often cases when an employer causes damage to an employee and vice versa. In the case when an employer causes damage to an employee at work (or in connection to work), he/she is obliged by law to compensate such a damage to an employee. The article presents and comments the decisions made by the Supreme Court of the Republic of Croatia regarding compensation of damages to employees by employers.
The possibility of contesting debtor's legal actions enables contesting property rights of an insolvent debtor. The Art. 66 of the Act on Obligatory Relations does not presume insolvency of a debtor, just the fact that the legal action has been made to the detriment of a creditor means that a debtor does not have enough assets to settle creditor's receivables. The article defines the term of contesting debtor's legal actions and presents legal norms which contribute to security of companies.
The article analyses the responsibility of members of management and supervisory boards for the damages caused to a share holding company or company's creditors. It also includes the responsibility of executive directors who do not represent the board but play an important role in the companies with a monistic structure and have some similarities to the board members in the companies with a dualistic structure of organs. Despite the differences in their position it is necessary to analyse their responsibility in order to offer a complete review.
Croatian Economy makes Net Profit Even in Recession Year According to the data stated in the annual financial reports for 2009, which were submitted to the Financial Agency until 31 March 2010 by the companies from real (not financial) sector, as well as legal and physical persons obliged to pay income tax, the Croatian companies had a relatively good performance in the recession year of 2009, although with worse financial results than in the previous year of 2008, which was the most successful business year (according to the realized net profit) in the past period, i.e. since 2003. The article presents the basic financial results of companies' performance in the real sector including a brief review of the performance according to business activities and company sizes.
