The notes to financial reports are the constituent part of the complete financial reports of large, middle-sized and small-sized companies as well as of the consolidated financial reports. The notes to financial reports are prepared by companies, sole traders, the business units of Croatian companies abroad, and the business units of the foreign companies in Croatia, as well as the legal and physical persons obliged to pay the profit tax. The companies which are not obliged to publish their financial reports prepare the notes for their own needs only. The article presents a brief review of the possible contents of the Notes to financial reports prepared in accordance with the CFRS no. 1 and the IAS no. 1.
Autori: Dr. sc. Vlado BRKANIĆ, mr. sc., ovl.rač., ovl.rev., prof. Mr. sc. Šime GUZIĆ, dipl. oec. i ovl. rač.
The notes to financial reports represent a constituent part of the complete financial reports of large, middle-sized and small companies as well as the consolidated financial reports. Due to the fact that the form and contents of the notes are not determined by any regulation, the article presents the explanations regarding the possible form and contents of the notes. However, some standards (CFRS, IFRS, IAS) require the specific contents of the notes. The experience so far has showed that the volume of the notes is not as important as the quality of the presented information. The article presents a brief form of the possible lay-out of notes, including the instructions how to prepare the notes and their possible contents. Such notes have not been adjusted and thus provide a free approach and the possibility of comprising various cases.
The main topic of this article is sales and its aim is to point to the certain business events in wholesales and retail sales, which can considerably affect the annual account – comprising the evaluation of the stocks of commodities or the impact on the determination of the profit tax base. The article presents some specific business events in trading activities, which can help traders upon drawing up their annual account to correct the possible mistakes in calculations, taxation procedures or recordings.
Autor: Mr. sc. Đurđica JURIĆ, dipl. oec. i ovl. rač.
The accounting standards define the procedure of determination, calculation and recording of stocks. The annual account of costs in production should comprise all the costs arising from creation of stocks, unfinished production, semi-finished products and finished products, which are recognized as short-term assets in the process of operation until the moment of sales. The author of the article presents a detailed procedure of preparing the annual account of production costs as the basis for drawing up financial reports.
Autor: Emica TRCOVIĆ, dipl. oec., prof. i ovl. rač.
Agriculture represents a specific type of the activity which comprises the production of biological assets and agricultural products for the needs of enterprises and the market. In terms of accounting the specifics of this type of production comprise the obligation of determination of the fair value of the biological assets and agricultural products and the supervision of the state subsidies, which represent a significant element of keeping this production competitive. The author of the article defines the basic accounting procedures in this type of production and explains the accounting procedures of recording the state subsidies.
Upon drawing-up of the annual account in catering industry, which comprises restaurant and accommodation services in commercial catering facilities, it is necessary to carry out a number of analytical and controlling procedures and the specific calculations of the elements used in the business process. A special attention should be paid to the regulations and organization of the annual listing. The annual listing in catering industry is rather complex due to the various phases of the stocks of raw materials and materials (storing, processing, de-freezing, thermal processing, etc.). In terms of taxation the Decision on the permitted ullage, spillage, damage, breakage and production waste in catering industry is applied for the needs of determining the allowed loss on products and regenerative food and waste. The article presents the specifics of the annual account and final recordings in the book-keeping of catering industry.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
Maintenance services represent in most cases the combination of provision of services and sales of goods, i.e. the sales of spare parts, products used for maintenance, replacement, processing, repair of the products for re-selling, etc. The accounting of such business events requires a comprehensive knowledge of the calculation elements, the operations in the warehouse, the tax regulations and cash transactions. The article deals with the specifics of maintenance activities and the important issues upon recording the business events in the above stated activities.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
The companies performing construction activities for other persons according to the contracts, as well as the companies which are investors at the same time, are obliged to draw up the annual account of operations and the annual financial reports, including the final conclusion regarding their business records. The article presents some specifics referring to the accounting of the business events in construction industry according to the requirements of the accounting standards. A special attention is pad to the problems which arose in 2010 due to the acts of the tax bodies referring to the recognition of the prepaid taxes by contractors.
Autori: Dr. sc. Vlado BRKANIĆ, ovl. rač. i ovl. rev. Tamara CIRKVENI, mag. oec., univ. spec. oec.
The companies engaged in transportation activities keep their business records and prepare financial reports according to the same rules as other companies, depending on whether they belong to the category of small, middle-sized or large companies. However, transportation activities are not homogenous but differ among one another according to the type of transportation. The article deals with some specifics of business events characteristic of such business activities and the specifics of final recordings upon drawing-up of financial reports.
Utility companies cover a part of their costs from the state subsidies. The state subsidies support the activities which are to the welfare for the society, and their beneficiaries use them to purchase fixed assets or to cover their current costs, depending on their purpose. The state subsidies have different taxation and accounting viewpoints depending on the fact whether the company which received the subsidy provides a counter-service or not. The article deals with the specifics of the annual accounts of utility companies and other beneficiaries of the state subsidies.
Besides the annual reports, large and middle-sized companies are obliged to prepare the annual reports on company's situation. The author of the article writes about the contents of such a report, who should prepare it, to whom, when and in what form it should be delivered.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
This workshop of budgetary accounting presents the recording of the recognized pre-paid tax under specific circumstances. This refers to the case when the date of the invoiced received delivery is later than the date of its receipt. The pre-paid tax can be recognized if the determined conditions have been fulfilled such as: the invoices for the received goods or the provided services contain all the data determined by law, the goods should be delivered and the services provided by the other value added tax payer, the delivery should be made to a company for entrepreneural purposes, the R-2 invoice according to which the pre-paid tax is deducted, should be paid.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
The non-profit organizations which keep their business records in accordance with the Directive on Accounting of Non-profit Organizations have to record their fixed tangible assets and other assets. In view of the fixed tangible assets, there is a determined possibility to write them off on a one-term basis if their individual costs are lower than HRK 2,000.00. This article presents the procedure of recording a write-off of fixed tangible assets on a one-term basis.
Autor: Mirela GLAVOTA, dipl. oec., ovl. rač. i ovl. rev.
The report on the salaries paid in January for December 2010 or for any previous month in 2010 is to be prepared in the new ID form, the contents of which is determined by the Rulebook on Amendments to the Rulebook on Income Tax. The deadline for its submission is until 15 February 2011. The R-Sm Form for the salary paid for December and paid in January 2011 is to be marked by the identificator in the order of numbers determined for the year of 2010. The new order of numbers starts with the salaries referring to January and on, which can again be 0001 for 2011.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
At the end of a calendar year employers are obliged to draw up the recapitulation of salaries in order to provide the control of the contributions paid for pension insurance based on the generation solidarity. The recapitulation of salaries is to be delivered to the Croatian Institute for Pension Insurance on their request. The article presents the procedure of drawing up the recapitulation of salaries.
Due to the transfer from the so-called institutional principle of taxation to the functional principal of VAT taxation since 1 January 2010, all the companies may be VAT payers. Such a possibility comprises companies, sole traders – income makers and profit makers, budget beneficiaries and non-profit organizations. However, this does not mean that all the companies are VAT payers. In order to become a VAT payer a company should satisfy the basic criteria for entering the VAT system. If they made a taxable turnover to the amount of over HRK 85,000.00 in 2009 they should completely apply the provisions of the VAT regulations, whereby they are obliged to prepare the final VAT calculation in the PDV-K form. The article describes the specifics and the procedure of preparing the final VAT calculation for 2010.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
Due to the extended obligation of employers to prepare the final account of income tax upon the last payment the number of tax returns for 2010 is expected to be reduced. Besides, the tax reliefs have been reduced to a half compared to the previous year. Accordingly, only the persons who determine their income on the basis of business records, the persons who made income from abroad unless the tax has been paid according to the Croatian regulations, the persons who were employed by two employers in 2010 and the seamen in international navigation are obliged to submit a tax return. All the citizens have still the opportunity to exercise their right to tax reliefs through tax returns. In such a case, they may submit a tax return for the income for which such an obligation exists and if they wish to return the tax paid on income for which there is no obligation to submit a tax return, they are obliged to present all the realized receipts in 2010 in their tax return form.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
All the seamen and crew members on board in international navigation should according to the receipts realized through their work on board submit an annual tax return regardless of the number of days spent on board. A seaman or a member of the ship crew in international navigation is regarded a captain or other physical person on board who performs work on the ship in international navigation and has been registered in the list of the ship crew. The ship in international navigation is the ship which sales from Croatia to the foreign port or vice versa, between two foreign ports, sales on the open sea or on the territorial waters of foreign states in order to provide the services referring to the activities at high seas such as research and exploration of energy resources and alike.
Some tax payers sometimes make their income from abroad. In such a case it is important whether such an income has been taxed abroad or if it is a receipt in a gross amount paid directly from abroad without calculation of the income tax. The article deals with the receipts of tax payers from abroad, according to which another income is determined. The taxation procedure in such a case is described in this article.
In order to meet the tax liabilities in a faster and simpler way and to submit the determined tax forms to the Tax Administration without wasting unnecessary time and additional administrative costs, the legal regulations determine the obligatory electronic delivery of some tax reports and tax forms for tax payers, who are according to the accounting regulations classified as large and middle-sized companies. The article presents the procedure of becoming a user of the electronic services provided by the Tax Administration and the forms and tax reports from 1 January 2011, which have to or can be sent to the Tax Administration electronically.
Autor: Mr. sc. Mirjana MAHOVIĆ KOMLJENOVIĆ, dipl. oec.
The article presents the report referring to the meeting of the International Accounting Standards Board held on 7 January 2011, at which the proposal of IFRS 10 – Consolidated Financial Reports was formed. A special emphasis is put on the definition of control and the announcement on consolidated companies in the standardized specific consolidated reports.
The agreement on granting non-refundable assets is signed by the managers of the contractual bodies (public institutions which published the public competition for non-refundable assets) and the applicant with the proposed project who has thus become the beneficiary of non-refundable assets. In the pre-accession period the above stated agreements are always prepared in the English language. The article presents the basic information on the contents of the agreement on non-refundable assets (the so-called grant projects) which are financed from the EU Funds, including the role of the auditor in such agreements. The article also presents the examples of the most common mistakes in the financial reports of the agreement parties and provides the instructions how auditors can be included in such a market, including the sources of the relevant information.
In December 2010 the European Commission accepted a number of regulations regarding court procedures in order to speed-up solving of the legal disputes over the board and to reduce the costs to companies and citizens. The reform of the regulations, known as Bruxelles I, is carried out for the first time after the year of 2001 and is aimed at promoting a better co-operation among the civil courts in the EU countries, including easier trading within the 27-member-block. Almost 40 percent of the European companies state that they would export if the court procedures were easier. Accordingly, one of the most significant planned changes is the proposal of the Commission to cancel the procedure according to which the court approves the decision made by some other court in a member country, the so-called exequatur.
A promissory note represents a security of payment, introduced in the Croatian law by the old Distraint Act. A promissory note is a means of security of payment in the case a debtor does not fulfil his/her due obligations completely or only partially. In such a case it is important that there are assets on the account to settle the due liabilities to the full amount. The new Distraint Act, whose provisions referring to a promissory note became effective on 1 January 2011, and the Act on Execution of Distraint on Cash Assets, which became effective on the same day, introduced some changes in the institute of a promissory note, which at first sight seem to be inappropriate.
The electronic age requires the corresponding changes of methods of payment. Cash payment and transaction payment are not sufficient. Electronic money grows in popularity. What is electronic money? What does it look like? Can it be used for making payment and collecting payment? What kind of security does its use provide? Does it require a lot of investments for its users? – These are the current issues after the Act on Electronic Money became effective.
The purpose of performing exchange activities is to make profit on the difference between the exchange rate at which a foreign currency is paid and the exchange rate at which it is sold. Foreign currency is paid at a lower price (purchase rate) and is sold at a higher price (selling rate). The difference between the purchase rate and the selling rate is the exchange rate margin, which makes income from performing exchange activities. The income from performing exchange activities can be generated from the commission which can be collected from the clients by the authorized exchange offices in the Republic of Croatia, which are only engaged in purchase activities of foreign currency. The changes of the Act of Foreign Currency Operations comprise the provisions referring to the operations of authorized exchange offices. Although there are no many changes, they can be characterized as substantial ones. The article analyses the above stated changes.
A child's allowance represents a payment effected by the state in order to support the education and living of a child. The funds for child's allowances are provided from the state budget. The allowance is paid monthly, in the current month for the previous month. The right to the child's allowance is determined according to the amount of the total income of all the household members of the child's allowance beneficiary and the number of children.
The income from Budget, the obligatory contributions and the income for financing other public needs are collected according to law and other legal regulations. The accounts on which the above stated income is paid, the way of paying the above stated income and the way of preparing reports on the effected payment by their beneficiaries are determined by the Directive on the way of payment of income from Budget, obligatory contributions and the income for financing other public needs. Such a Directive is specifically determined by the head of the Ministry of Finance each year and published in the official gazette of the Republic of Croatia.
The Act on System of Internal Financial Control in Public Sector determines the obligation of preparing annual reports for the needs of the system of internal control. The annual reports are prepared in accordance with the special directive made by the Minister of Finance. The annual reports for 2010 are to be made according to the Directive made at the beginning of 2011. The authors of this article stress the most important issues in this Directive compared to the similar one which was applied upon drawing-up annual reports within the system of internal controls in the previous years.
In view of the new Act on the Right to Access to Information in the Units of Local and Regional Governments and the Companies Founded by Such Units the article analyses the following issues: which of the above stated legal persons are obliged to apply the Act?; in which cases is the access to information not determined by this Act?; which pieces of information owned by the local and regional public sectors are (not)accessible and under which conditions?; what are the ways of protecting the right to information?
1. Makroekonomski pokazatelji 2. Cijene na malo 3. Cijene industrijskih proizvoda pri proizvođačima 4. Industrijska proizvodnja 5. Vanjskotrgovinska razmjena 6. Trgovina na malo 7. Turizam 8. Plaće 9. Likvidnost i solventnost