The topic of the article is the question how small-sized companies can survive the economic crisis under the conditions of the reduced operations or the reduction of their delivery prices. For this purpose, the way of price calculation for the rendered services including the price of a working hour and the variable costs is researched. The article also deals with the issue how a company can prepare a competitive offer for a job. A specific attention is paid to the possibility of reducing the number of activities in case of the lack of orders, including the reduced working hours.
Retail sales represent a purchase of goods for further selling to consumers for their personal consumption or household use, as well as to professional users if such sales do not require the fulfilment of the additional minimum and other conditions determined by the specific regulations. In retail sales the goods are recorded per purchase prices including the value added tax. However, in the financial accounting the goods are initially recorded per their purchase (net) value. As a consequence, the debit account is to be adjusted taking into consideration the calculated VAT and the margin. In case of selling the goods in the outlet, the buyer receives a bill to be paid in cash.
The traditional costs of production can be calculated by means of the traditional methods of calculation or the modern methods of calculation. The traditional method of cost calculation represents the calculation of production according to the work order. This method of calculation is applied in the production of a small quantity of products, usually according to the specific order. The basis of the calculation is a work order in which the direct and indirect expenses in the production process are recorded.
The author of the article analyzes the accounting of flower growing according to the requirements of the CFRS 17 – Agriculture, i.e. the IAS 41 – Agriculture. She presents the examples of the accounting of flower growing as annual or perennial crops and the calculation of costs which include the value of the crops i.e. the biological assets and the value of the cut flowers i.e. the agricultural products.
The author of the article analyzes the accounting of the companies and sole traders (income tax payers) engaged in the purchase and sales of flowers. The enterprises engaged in flower trading have to keep their business and tax records as all other traders selling different types of goods. Despite this fact, the article specifically explains the accounting of florist operations and flower trading due to a number of specifics which appear upon lease and release of an outlet, for which they are obliged to have the records on stocks.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
In the RRiF issue no. 4/12 the article provided a detailed explanation referring to the filling-in the positions in the TSI-POD Form. This article presents the short instructions regarding the delivery and filling-in the specific positions in the above stated Form.
In these unstable times the protection of the investments has become a rather serious problem to enterprises. The suggested solutions refer to the specific types of collaterals. The author of the article presents a book-keeping procedure of the implemented derivative – a foreign currency clause. Such a contract is usually signed when the receivables are recorded in the Croatian kunas. A similar procedure in book-keeping is conducted in the case of the contract on the receivables in a foreign currency signed with non-residents. The article also presents the differences in the procedures between a foreign currency clause and the calculation of foreign currency exchange gains and losses for the receivables and liabilities in a foreign currency.
According to the Rulebook on Budgetary Accounting and the Chart of Accounts the permanent expenditures which are continuously arising and which are calculated for the calendar periods during the year (usually once a month) are to be included into the business expenditures according to the number of months in the reporting period. The budget beneficiaries, who included thirteen monthly expenditures in their budget/financial plan for the reporting year, are not obliged to apply the above stated apportionment. This workshop on budgetary accounting states the particular expenditures and the issues a budget beneficiary should consider upon accounting for such expenditures.
Autor: Mirela GLAVOTA, dipl. oec., ovl. rač. i ovl. rev.
All the non-profit organizations engaged in double-entry book-keeping may prepare the S-PR-RAS-NPF Form for the period January-September 2012 and deliver it to FINA. According to the corresponding regulations certain organizations are obliged to deliver such a form, whereas some organizations accepted such obligation voluntarily.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
A non-profit organization can acquire the ownership of real estate in the Republic of Croatia in order to achieve the goals of its establishment according to the statutes and other regulations. Although the main goal of non-profit organizations is not to make a profit, they are obliged to apply the Act on Capital Transfer Tax, as all other persons in the Republic of Croatia who have purchased a certain real estate. The article states various taxation viewpoints which should be considered by a non-profit organization upon purchase of real estate and the way of recording the ownership of the real estate in terms of accounting and taxation.
Autor: Mirela GLAVOTA, dipl. oec., ovl. rač. i ovl. rev.
In practice, the domestic companies pay various compensations to foreign physical persons. Such payments may have different ways of calculation of the income tax, depending on a number of important facts. Although a non-resident in the Republic of Croatia may have taxable receipts which may be taxed by the income tax, comprising all the sources of income (income from non-independent work, income from capital, etc.), this article points to the taxation of the receipts, which are regarded as other income according to the Croatian regulations.
The dividends and shares in profit realized by the physical persons from shares and stakes in a company and which are paid from the realized income from 2001 and on, have been regarded as income from capital since 1 March, 2012 and are to be taxed. If they are paid by the domestic company to the Croatian resident, the taxation rate is 12% increased by the possible surtax upon payment. The tax is to be calculated by the payer. If a dividend or a share in profit is paid to the Croatian resident by a company abroad, the tax payer is obliged to calculate and pay the income tax and surtax within 8 days according to the Croatian regulations. In such a case the international agreements on the avoidance of double taxation have the advantage in relation to the Croatian regulations. If the payer from abroad has calculated the tax according to the international agreement, the tax payer has the right to reduce the annual tax liabilities by the paid tax of the same kind abroad, based on the tax refund.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
If the German Federal Financial Court makes a decision which may be favourable to tax payers, it can, as a “source of law” be applied only when it has been published in the Federal Tax Gazette. But even then the case has not been resolved because the court may suggest to the law-maker to pass the act on non-application of the specific court decision. Tax advisers believe that it leads to legal uncertainty and violation of equality in the taxation system.
In the process of preaudit an auditor should be acquainted with the client’s business operations, in order to choose the appropriate audit testing approach. Usually, an auditor starts obtaining the information on the company’s system i.e. its business cycles. After comprehending the business cycles an auditor tries to identify the controls which exist in the company. The article presents the examples of the questions which may be asked by an auditor upon description of the business processes.
Autor: Anamarija Miletić , dipl. oec., ACCA i ovl. rev.
The International Accounting Standards Board (IASB) published in July 2012 the plan of work until the end of 2013. The plan clearly shows that all the start-up projects on the financial reporting standards have been initiated by the financial crisis and represent the result of the co-ordination between the IASB and the American FASB. The author of the article presents the changes which refer to the recognition of income.
1. Što donose nova europska proračunska pravila? 2. Island povećava PDV na turizam na 25,5% 3. Rumunjska uvodi energetski porez 4. Francuska ograničava porezne olakšice na 10.000 eura 5. Švedska dodatno smanjuje korporativne poreze 6. Portugalska porezna amnestija potaknula rast prihoda 7. Belgijski porezi na rad najviši u Europi 8. Grčka namjerava pojačati naplatu kazni na neplaćene poreze 9. Uskoro zakonom definiran udjel žena u poslovnim odobrima
The article presents eight ways of securing receivables. Each type of securities (bank guarantee, promissory note, bill of exchange, etc.) is explained including its basic characteristics and technical instructions for its collection. The goal of the article is to present the possibilities offered to entrepreneurs in order to increase the security of collection of payment and the contracted relationship between a debtor and a creditor.
Autor: Dr. sc. Vlado BRKANIĆ , prof. vis. šk., ovl. rač. i ovl. rev.
The Act on Credit Institutions includes a number of complex requirements especially in the parts regarding the equity of credit institutions and the system of risk management, as well as the parts which determine the system of management of a credit institution as a whole. Besides the obligation of a credit institution to perform an internal audit and to establish two more control functions – the function of the risk control and the function of observing the compliance, the law-maker has introduced two substantial changes of the operations of the internal audit. Today, two years after the above stated Act came into effect, it can be rationally evaluated which goals should be achieved by auditors, which is their role in the system of managing a credit institution and what is expected from them in the future.
The Directive on the collection of data necessary for preparation of the balance of payments, the status of the foreign debt and the status of the international investments became effective on 22 September 2012. Although this Directive has replaced the Directive of the same title, which was valid until the new one became effective, it does not represent just a compliance with the new notions or needs, but it brings some new issues. Most of them were dealt with in the RRiF issue no. 8/12. This article explains the impact of the valid Directive on the reporting system of the Croatian National Bank regarding credit and deposit operations with foreign countries.
The persons obliged to pay an income tax, sole traders and free professions may purchase from various supplies real estate as a long-term asset used for performing their activities. They can be, for example, other entrepreneurs engaged in a registered activity, i.e. companies and other sole traders, free professions or citizens. Frequently, sole traders invest their own property – real estate into their business assets. The tax position of a sole trader determines whether the sold and purchased long term assets are to be taxed with the VAT, the capital transfer tax or the combination of the both taxes. According to the regulations on the income tax the above stated sales certainly affect the income from the independent sole trading activities. Upon the recording of the real estate as long-term assets by the income tax payers, i.e. sole traders, free professions and other income tax payers, who keep the business records, the so-called cash account principle is not applied, whereby the purchase of the long-term assets is not recorded as expenditure.
According to the Income Tax Act, independent activities performed by lawyers and public notaries are regarded as free professions. The income, as the base for taxation, is determined according to the regulated data from business records, taking into consideration the principle of a cash account, i.e. in the same way as the income realized by sole trading activities. Besides the determination of the income from sole trading activities according to the presented data in the business records taking into account the fulfilment of certain conditions, there is also the possibility of advance payment of income tax. However, such provisions cannot be applied to the activities of lawyers or public notaries, due to the fact that they have not specifically been stated in the Act. The activities of lawyers and public notaries can be performed as a free profession, in one office, whereby a number of co-partners realize a common income, or as a legal person established as a general partnership or a limited liability company. This article explains the conditions necessary for the performance of the activities of lawyers and public notaries, business records which have to be kept according to the tax regulations and the way of recording some business events in the business records.
Autor: Mr. sc. Mirjana MAHOVIĆ KOMLJENOVIĆ, dipl. oec.
In practice, small florist shops usually perform their floriculture activities registered as sole traders. The reason for this is an easier registration procedure and the further adjustment to the conditions of sales on the market. The article analyzes the operations of florists – income tax payers. The florists – income tax payers are obliged to enter their business events in the records determined by: a) the Income Tax Act (book on receipts and expenditures, list of long-term assets, book of business transactions, records on receivables and liabilities, records on purchase and use of reproduction and consumables); b) the Act on Trade – records on stocks in the outlet; c) the Value Added Tax Act for the VAT payers (billings records).
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
Advertising, as one of the forms of market communications, represents an important activity of sellers and is aimed at the achievement of the favourable effect on the economic benefits of consumers and sellers. Accordingly, advertising can have a substantial impact on the undisturbed functioning of the market. If advertising is deceiving or is running parallelly to another advertising, which is not allowed, the market competition can be deteriorated. The sellers who use the deceiving and/or unallowed parallel adverting of their products and services, act in an unfair way to consumers and represent an unloyal competition to other sellers. The article explains the basic provisions of the Act on Unallowed Advertising, especially when such advertising is regarded as deceiving, including the preconditions for the allowed parallel advertising and the ways of protection against unallowed advertising.
The article presents the possibility of legalization of illegally constructed buildings according to the specific acts. If some buildings have been constructed in the areas which have not been planned for construction according to the urban planning or are situated in the protected parks, the legalization is not permitted. The legalization process requires the payment of the compensation for utilities and water supply. The deadline of making a claim for legalization is 30 June, 2013.
The author of the article presents some important issues regarding the contract on order, which represents the legal basis for determining the relationship between the company and the procurator, which also serves as the basis for payment of the compensation to the procurator, who is not employed with the company which has given him the procura as the trade power of attorney in the broadest sense, the contents and volume of which are determined by the Companies’ Act. Due to the high importance and power of attorney of the procurator, the procura is to be entered into the court register of the competent commercial court.
The process of planning of the local and regional budgets which include the financial plans of their budget beneficiaries is currently under way. The Instructions for preparation of the budget of the units of the local and regional self-governments were issued for the period from 2013 to 2015, which have to be followed by all the units of the local and regional self-government. The head of the unit of the local and regional self-government is obliged to submit the proposal of the budget and the projection to the representative body until 15 November 2012. Management boards, school boards and other management bodies of the budget beneficiaries within the units of local and regional self-government (schools, kindergartens, libraries...) are obliged to adopt the financial plan until the end of the year, so that the new obligations can be taken over and fulfilled as at 1 January, 2013. Due to the fact that the methodology of preparation of the financial plans and budget has not been changed compared to the previous years, this article stresses the fiscal responsibility.
Due to the fact that the accounting of budget and budget beneficiaries comprises the accounting periods every three months during the budget (calendar) year, it is necessary to draw up and present the financial reports for the period January-September 2012, too. Since 2011 the Rulebook on Financial Reporting in Budgetary Accounting has not been changed. Accordingly, the financial reports for the period from January to September 2012 are to be prepared in the same way as those for the same period in 2011. The article provides some general instructions for preparation of the financial reports in the budgetary accounting system for the period January-September 2012 and states some specifics which are to be considered upon financial reporting.
The total weekly obligations of teachers are determined within a 40-hour-working-week according to the annual plan and programme of work. A teacher obtains a ruling on the weekly and annual obligations referring to the direct teaching process and other working activities. The research of the proper solution regarding the working obligations focuses on the teachers in the system of secondary school education. The article provides the explanation of some viewpoints and specifics upon obliging secondary school teachers with working hours and their working time, which represent the consequence of these.
The Government of the Republic of Croatia and the unions of civil servants and employees signed on 2 August 2012 the new Collective Agreement for Civil Servants and Employees for the period of four years. Besides the Collective Agreement, the Government of the Republic of Croatia and the unions of civil servants and employees signed two annexes: Annex I to the Collective Agreement determines the way of payment of the exceptional solutions in the payments of certain substantive rights in 2012 and 2013 and the Agreement on the Amendments to the Annex of the Agreement regarding the salary base in the public services dating back to 23 March 2009, which determines the way of increasing the salary bases depending on the realization of the economic growth. The article deals with the above stated issues.
Autori: Sanda PIPUNIĆ, dipl. iur. Vesna ŠIKLIĆ ODAK, dipl. iur.
