The changed structure of financial reports, in which the income from the use of products for company’s own needs cannot be presented separately resulted in uncertainties regarding the way of recording such an income. So far there have been three types of business income in the profit and loss account. Now, only two of them can be recorded – the income from sales and all other business income together. A question arises whether other business income can contain the income from the use of products and services or the income from the use of products and services cannot be presented and recorded. As usually, those who determine the form and contents of financial reports do not explain the way of drawing up specific reports. The article deals with the above stated issues.
The foreign currency system in the Republic of Croatia enables operations with foreign currency. Such operations are limited by the special decision made by the Croatian National Bank. In some cases it is allowed to retain foreign currency cash on hand. One of the uses of such a foreign currency cash is for business trips abroad. The article presents the organization of the foreign currency cash on hand, the recording of the inflow of foreign currency, the payment of foreign currency, the calculations in the travel order forms for business trips abroad and the recording procedures.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
Besides wheat, barley and oats many agricultural companies in Croatia invest into corn production. Such an agricultural activity is performed within the period of one year. Equally to the production of other cereals the corn production requires determination of the key according to which the general expenses for production are to be distributed. The author of the article analyzes the requirements of the accounting standards which refer to the production of the short-term biological assets i.e. corn and presents the complete example of the calculation and recording of the expenses of corn production.
The new Act on Co-operatives, which became effective on 31 March 2011, determines the reasons for liquidation of the co-operative. One of the reasons is the decision made by the co-operative assembly on liquidation of the co-operative. The authors of the article analyze the legal viewpoint of liquidation of a co-operative, i.e. the procedures referring to making the proper decisions and realization of liquidation. The article also explains the accounting and taxation procedures in case of liquidation of co-operatives – profit tax payers, including the preparation of financial and tax reports for the co-operatives which are to be liquidated.
The entrepreneurs obliged to submit the statistical report – the form for the period January-September 2011 are all the companies and entrepreneurs as well as the physical persons who keep their business records according to double-entry book-keeping, including the entrepreneurs in liquidation or bankruptcy procedures. Such an obligation does not refer to the companies which do not operate, i.e. the companies which in the period for which the report is to be submitted did not have any income or expenditure recorded. The article provides brief notes regarding the entrepreneurs obliged to submit the statistical report, the deadline of its delivery and the specifics referring to filling in of the specific positions.
This workshop of budgetary accounting presents and analyzes recording of business events regarding the purchase of fixed assets of employees and the transfer of the long-term non-financial assets from the Budget to the budget beneficiary. The article presents the procedures in budgetary accounting referring the processing of the above stated transactions.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
Almost all the non-profit organizations applying double-entry book-keeping should prepare the S-PR-RAS-NPF Form for the period January-September 2011 and deliver it to FINA. It is to be prepared and delivered until 20 October 2011. This report is not delivered to the State Audit Office. The basis for filling in the form are the data presented in book-keeping accounts. The author of the article presents the procedure of preparation of the above stated report and its delivery to the Financial Agency (FINA).
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
Upon purchase or sales of products, goods and services non-profit organizations may receive or make advance payments. An advance payment is made or received by a non-profit organization as a certain amount of money for undelivered products, goods or unrendered services. If a non-profit organization makes advance payments, it is obliged to record the receivables for the effected advance payments in its book-keeping. Contrary to this, if a non-profit organization receives the advance payments, which is necessary for easier realization of the contracted business operations, it is obliged to record the advance payments as the liabilities for the received advance payments. The article presents the ways of recording the received and effected advance payments, including the taxation viewpoints regarding advance payments in the non-profit organizations which are within the value added tax system.
Autor: Mirela GLAVOTA, dipl. oec., ovl. rač. i ovl. rev.
The payment of salary is possible according to the court decision, the settlement made during the court procedure, the settlement made with the authorized state attorney’s office in the procedure of amicable settlement of a dispute or according to the settlement made in the procedure of conciliation in individual labour disputes, as well as in the distraint procedure in the case of payment of a gross salary. In such cases there are exceptions of calculation of the income tax in view of the basic provisions according to which the income tax from regular salaries is to be calculated. The article deals with payment of salary according to the free settlement between the employer and the employee in case there are no exceptions in view of the basic rules.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
Employees may have an injury at work. In such a case an employee has the right to compensation of damages for the injuries suffered during work and performing the working tasks according to the contract on employment or the work performed for the interest and benefit of the employer. The author of the article explains what the payers should do in specific cases and whether the paid compensation should be taxed.
According to the valid regulations of the Republic of Croatia the minimum salary is the minimum amount of salary, below which an employer should not pay the employed person. Such a salary represents the lower limit of this tangible right as the minimum amount necessary for the existence of an employee and his/her family. Thus, en employee is protected from the possibility that an employer calculates and pays even lower salary than determined, which would completely degrade an employee and additionally violate the principle of equivalence of the equal values of acts.
Upon determination of the default and contracted interest rates after 1 July 2011 it should be taken into account that the discount rate of the Croatian National Bank has been reduced to 7% p.a.. Accordingly the permitted amounts of default and contracted interests have been changed. In view of taxation the change of the discount rate has mostly affected the interests determined by the provisions of the Profit Tax Act, i.e. the amount of the recognized expenses for interests in view of taxation. The article presents the procedure of determination of obligations of tax payers based on the contracted and default interests according to the reduced discount rate of the Croatian National Bank.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
The rental of movables and real estate represents the activity of physical persons, which results in taxable income. Such an activity principally subjects to income tax. However, according to the lessors’ decision they may pay profit tax too. If a lesser earns more than 85,000 HRK in the tax period of the year, he/she is obliged to pay value added tax and thus in view of taxation becomes equal to crafts businesses and free professions. Exceptionally, the income from real estate rental for residential purposes do not subject to payment of value added tax. Since 1 January 2009 lessors are obliged to pay contributions in some cases. This obligation does not refer to pensioners. There is a wide variety in the taxation and social status of a lesser, which points to the fact that it is difficult to classify them according to the determined criteria and possibilities, which the author of the article will attempt to do.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
A shipping agent is a physical or a legal person, who on his/her behalf or on the behalf of a client performs shipping operations. Shipping operations comprise the organization and realization of preparation of goods for transport, storing of goods, loading and unloading of goods, customs representation of transport or organization of transport and a number of other logistic services. The article presents a specific viewpoint of VAT taxation in shipping and the notes which should be stated on the issued invoices, including the recordings in business records.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
Electronic operations have become rather common today. They are frequently applied in everyday business operations, which make them faster, more efficient and transparent. Such a way of work makes business operations easier. It is mostly applied in operations with the state administration in order to fill-in the tiring forms, which really simplifies the way of submitting the forms to the authorized bodies. The electronic operations are now in use when receiving and issuing invoices for the needs of VAT payments. There are some unclear issues regarding technical details such as safety and filing. The article deals with the possibility of application of e-invoices.
Within the VAT system foreign services are taxed according to the place where they were rendered. However, the place where the service was rendered is frequently not the place of the real (physical) provision of the service. Accordingly, there are several criteria – principles according to which the tax position of foreign services can be determined. The basic question is whether a certain service subjects to VAT taxation or not. However, the fact that a particular service was rendered to a foreign company or by a foreign company to a domestic company does not mean that it does not subject to taxation. Similarly, foreign services which do not subject to VAT taxation may not be identified with the VAT free services. The author of the article analyzes the above stated and similar specifics upon taxation of the so-called foreign services.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
The permanent existence and development of the society, including organizations, does not accept the business philosophy which now leads to the crises in the whole world. Therefore, the business world today is again oriented to the principle of healthy egoism. Accordingly, the managers and controllers of an organization as well as their assistants are faced with new challenges and tasks. They are aimed at systematic management of the key risks and the realization of long-term goals within the framework of sustainable and healthy business egoism. The legal operations of an organization have resulted in the need for new activities and experts (forensics and experts in legal issues) who are professionally engaged in early revealing of the signs, investigations and the prevention of illegal acts.
Autori: Prof. dr. sc. Franc KOLETNIK Melita KOLETNIK KOROŠEC
Compared to the external audit which determines the facts of the past events and provides the opinion, the internal audit helps overcoming the obstacles and realizing business goals. This is achieved through the systematic approach to evaluation and improvement of the efficiency of the risk management and thus represents an instrument of business decision-making. The authors of the article analyze the provisions of the Rulebook on Internal Audit and explain the framework in which such a Rulebook is to be applied.
Autori: Slaven POSAVAC, dipl. oec. i ovl. int. rev. Dr. sc. Dario Dunković
In June 2011 the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) published the amendment to the IAS no.1 – Presentation of Financial Reports, which improves and complies the report on other profits and losses of the comprehensive income (OCI), prepared according to the IFRS, with the reports prepared according to the Generally Accepted Accounting Principles (GAAP).
The European Commission made the analysis of the taxation policy and its application in the legislation of the specific EU member countries. This is essential for the governments of every member country, since they are obliged to keep the balanced budget. The member countries are recommended to adhere to the Stability and Growth Pact.
In the developed economies of the west European countries and the USA there are approximately ten methods of evaluation of real estate. All these methods can with certain limits be classified into three basic approaches to evaluation of real estate: the approach based on expenses, the comparative approach and the approach of capitalization of returns. The application of the specific approach depends on a number of factors, the most important being: the goal of determination of the real estate value, the moment of evaluation, the type of real estate, the specifics of real estate, the developments on the real estate market, the skills and knowledge of the evaluator, etc. In the Croatian economic practice the most common method is the method based on expenses, which belongs to the category of the approach based on the expenses. The other method which belongs to the category of the comparative approach is used as the additional method to the method based on expenses.
The model of decision making on choosing the way of financing is based on the comparisons of the variants of financing the purchase of investment goods by various forms of leasing and credits. Upon decision making on the best way of financing the impact of the specific way of financing on the financial position of a company is analysed, i.e. the balance sheet, the profit and loss account and the company’s cash flow. The article presents the impact of the specific way of financing on the financial position of the company, which is the result of the applied accounting policy too. Especially the balance sheet which presents the purchased assets and the taken-over liabilities shows the changes on the assets, the liabilities and the capital due to the changed way of financing of the fixed assets.
Autor: Mr. sc. Snježana BRKANIĆ PONGRAČIĆ , dipl. oec. i ovl. rač.
The temporarily imported goods are under the customs supervision of the country into which they have temporarily been imported from the moment of crossing the customs line until their return – re-export of goods or their putting into service. The article analyzes the procedure of temporary import according to the Annex E of the Istanbul Convention regarding temporary import with a partial exemption from payment of customs tariffs and VAT.
According to the Act on Crafts Business a crafts business is an independent and permanent performing of the allowed economic activities by physical persons with the purpose of making a profit, which is realized through production, transport or provision of services on the market. Exceptionally, a crafts business may be performed by legal persons (companies, institutions, co-operatives) if such a business is not performed in an industrial way. The activities defined as industry are stated in the special Rulebook. The author of the article provides the answers to the frequently asked questions, such as: What is regarded as a crafts business?, Which economic activities may be performed as a crafts business?, How many employees may be employed in a crafts business?, Which are the advantages of operations as a crafts business? Which crafts businesses are classified as home industry and an additional job? How can a crafts business be performed and registered? What are the procedures of liquidating a crafts business?, etc.
Those obliged to apply the regulations in the field of prevention of money laundering and financing of terrorism should under certain circumstances inform the corresponding body. This article explains the circumstances and the way of informing the Office for Prevention of Money Laundering on suspicious transactions by the persons engaged in non-professional activities (other obliged persons) i.e. the persons who do not perform professional activities: lawyers, notaries, accountants, audit companies and tax advisors, The circumstances and the ways of informing the Office for Prevention of Money Laundering by lawyers, notaries, accountants, audit companies and tax advisors were explained in the article published in the RRiF Magazine no. 8/11.
Sellers are obliged to clearly, visibly and legibly present the amount of the determined retail price and the price of the measure units of products or services they provide to consumers. The Act on Consumers’ Protection and the Rulebook on the way of labelling the retail price and the price for the measure unit of products and services determine the cases when the seller is obliged, and when not, to label the prices. The specific regulations in catering industry determine the obligation and the way of price labelling of catering services. The article presents the way of labelling the prices of products and services in the fields of commerce, service and catering industries.
In practice there are often questions regarding overtime work, especially those referring to who, when and to what extent may introduce an overtime work and in which cases it is forbidden. Besides, the author of the explains the situations when the employer is obliged to inform the labour inspection on overtime work.
The Act on Amendments to the Act on Maritime Affairs, which became effective on 11 June 2011, completed the reform of the pension insurance of seamen. The reform is to be realized in two phases, the first one in the period from 1 January 2008 until 10 June 2011, whereas the second phase started on 11 June 2011. The personal registers were introduced in the Croatian Institute for Pension Insurance, including the new documents which the employer (port authorities, a ship-owner or a foreign company) is obliged to deliver to the Croatian Institute for Pension Insurance. The author of the article describes the procedure of preparation of some documents regarding the employment of seamen.
According to the Act on the Amendments to the Act on Maritime Affairs the members of the crew in the international and national navigation have after almost two decades obtained the right to pension insurance with the accelerated pension plan. Regardless of their citizenship, the type of the ship or the type of the cargo, a member of the crew has the right that every 12 months spent on board as the crew member in the international or national navigation are calculated as 15 months of pension insurance. The article deals with the above stated provisions, which have been applied since 11 June 2011.
Upon application of the Act on Capital Transfer Tax and other corresponding regulations it is necessary to distinguish the rights and obligations of the both parties in the lifelong support contract and in the contract on support until death. The article presents the obligations and includes the samples of the relevant contracts.
The preparation of various analytical and tax reports in Excel is a demanding task in accounting. Although some companies have IT-systems which automatically generate various completed reports, many accountants do not have such a possibility, but need data processing in order to prepare each report. The article presents guidelines for the easier and faster preparation of such reports as well as the possibilities of Excel for the preparation of the reports on expenses according to the place where they arose.
The article presents the development of the theoretical and empirical ideas in the field of finances and financial policy in Croatia in the 20th century. The Croatian citizens who studied at the universities in the Western Europe contributed to the development of financial concepts. They brought the contemporary scientific ideas and offered their solutions for resolving the largest economic crisis in the period from 1929 till 1933. The analyses of the foreign currency and credit relations in that period are illuminating for the today’s economic recession. The article presents the works and thoughts of Ivo Belin, who made a special contribution to the financial science in Croatia.
1. Opći prikaz 2. Cijene 3. Indeks proizvođačkih cijena industrije 4. Industrijska proizvodnja 5. Vanjskotrgovinska razmjena 6. Trgovina na malo 7. Turizam 8. Plaće 9. Likvidnost i solventnost 10. Zaposlenost