The model of target expenses represents a complex concept of cost management. Although it has been used by the Croatian companies for almost two decades, it still causes numerous contradictions in its practical application. The techniques of target expenses represent a contemporary concept of cost management and comprise a number of instruments used for planning and decision making regarding the structure and costs of production or services. This model is applied in the early phase of production, i.e in the phase of planning and development of a product in order to adjust the product to the customers’ needs and wishes. The article analyses the techniques and methods of calculation of target expenses and the most important aspects of their complex application.
Autori: Mr. sc. Katarina KOTNIK GALIĆ Zoran GALIĆ, dipl. ing. stro.
Capital, as the most significant source of financing, comprises the invested and the earned capital. The invested capital can be subscribed and non-subscribed. The subscribed capital is invested by the company members according to the founding by-laws entered in the court register, whereas the non-subscribed capital represents a free part of the capital which is formed according to the company’s by-laws, statute and decisions made by the company members i.e. shareholders. The article deals with the legal foundations of capital creation, where by a special attention is paid to the capital reserves.
The amalgamation and merger of enterprises represent a rather complex area in the accounting theory and practice. They are carried out in accordance with the provisionson enterprises, accounting and tax regulations. They represent a part of the business combinations, according to which the acquired enterprise is amalgamated by the enterprise which has acquired a share in its capital(amalgamation) or one or more enterprises are merged with another enterprise (merger). Due to the fact that the Companies’ Act and the accounting regulations require different procedures upon amalgamation of limited liability companies compared to shareholding companies the author of the article explains the procedure of amalgamation and merger of a limited liability company.
One of the basic accounting requirements in the accounting standards refers to the recording of assets per their fair value. The reduction of assets to their fair value causes the increase or decrease of the asset value, i.e the increase of expenses or income or the capital amount. The expenses which emerged from the reduction of assets to their fair value are not always non-taxable. The article deals with the procedures of reduction of receivables to their fair value i.e. recording of value adjustment and write-off of receivables from buyers inbook- keeping and presents the tax position of such value adjustments and write-offs.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
The quarterly statistical review of the business operations of enterprises, including banks, savings banks and insurance companies is carried out according to the Programme of Statistical Activities of the Republic of Croatia for 2008-2012 and the Annual Plan of Statistical Activities for 2008. Tax payers submit their quarterly statistical reports in the corresponding forms such as the TSI-POD Form for enterprises of all sizes (except banks, savings banks and insurance companies), the TSI-BAN Form for banks and savings banks, the TSI-OS-RE Form for insurance companies and the TSI-IN Form for non-profit organizations. The statistical reports (one copy) for the period January-September 2008 should be delivered to the local FINA office until 20 October 2008 at the latest.
The new Trade Act which has been applied since 2 August 2008 (except the provisions referring to the work on Sundays, which come into effect on 1 January 2009) raised among salesmen a number of questions, for ex ample: sales of goods below the purchase price, recording of stocks, working time, etc. The author of the text gives comments on the new Trade Act and explains the application of the new provisions.
The term detached worker is defined in each international agreement on social insurance. They are the workers sent by the employers to work temporarily for their company or subsidiary abroad. The author of this article writes about the tax and social status of the Croatian detached workers, i.e. the workers who are employed in the Republic of Croatia and sent by their employer to work abroad. A special attention is paid to the application of the international agreements on social insurance and the agreements on avoidance of double taxation.
A contract on employment should be signed with domestic workers because their status corresponds to the status of the persons employed with physical persons (craftsmen and free professions). Besides the contract on employment, the employer should take some other actions regulated by specific by-laws. The article deals in details with the procedure of signing the contract on employment with domestic workers including the employer’s actions to be taken upon employing a domestic help.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
In the RRiF issue no. 8/08 the first part of this article was published, in which the term special audit was discussed. It comprised the audit of establishment and the increase of the share capital of an enterprise. The second part deals with the audit aimed at protection of minority owners, the audit of amalgamation, merger, division and restructuring of an enterprise.
The author of this article presents the view points and recommendations of the European Union regarding enterprise business operations such as the deadline for registration of audit activities, the warning to reduce water consumption, increased loans to small and middle sized companies, the pharmaceutical regulation package, the changes in cargo transportation, the extension of maternity leave period and the differences in duration of a working week.
Default interests are calculated retroactively when a certain period of time is viewed from a distance. In the period of stable economy default interests have one dimension and a completely different dimension in the period of hyper-inflation. Therefore, it sometimes seems that the calculation models applied in the hyper-inflatory economy, when prices used to rise fore more than 11 times a year, do not function with the conforming interest rate in the period of stable prices, because they seem to be in favour of creditors. The author of this article presents the review of interest rates and methods of calculation of default interest rates in the past and states the examples of some significant differences and similarities between specific methods and view points of the issues referring to the calculation of default interests.
The planning of investment projects and their evaluation are performed in the conditions of uncertainty regarding the parameter values of the projects in the future. In such processes there are attempts to minimize the errorsin forecasting, not to eliminate them because this is not possible. Due to the fact that an investment project logically refers to the future, it should be departed from such a presumption because the future can not be completely forecasted – it is not deterministic. The real values of specific variables in the future will be within their expected values in a certain interval, which means that the future is stochastic. The author of the article presents his model of the analysis of the investment project planning.
Double-purpose goods, including software and technology, represent the goods which can be used for civil and military purposes. Such goods can be used for the production of nuclear, chemical and biological weapons. For the export of double-purpose goods one should obtain the export permit issued by the Ministry of Economy, Labour and Entrepreneurship. The author of the article gives comments regarding the new Act on Exports of Double-Purpose Goods and points out the changes.
The term delivery generally means that the supplier gives to the recipient a certain economic value and receives a certain compensation which can be in form of cash, goods or services. This article deals with VAT liabilities upon investment of assets into a company (in the existing company or upon establishment of a new company), upon the changed structure of a company, amalgamation, merger and divisionof companies.
The new Rulebook on Permanent Court Interpreters and Court Appointed Experts has come into effect. Its provisions comprise the determination of the conditions for a permanent court interpreter and a court appointed expert, their rights and obligations including the fee amount and compensation of expenses for their work. The above stated Rulebook is also applied to the interpreters appointed by the court for a specific case as wellas the interpreters for deaf-and-dumb language including interpreters for other persons who can not express themselves due to their physical or other defects. Besides the above stated issues, the author of this article deals with the tax position of the payment of compensations and fees to the interpreters and court appointed experts.
This article deals with the legal possibility of prohibition of business operations in case of avoidance of tax payment or as a precaution measure determined by the misdemeanour provisions. Such measures are conducted by the tax authorities or the bodies of the internal affairs.
During the year there have been many changes of the provisions regulating profit tax payment such as the Act on Free Zones, Act on Mountain Areas, Act on Reconstruction and Development of the Town of Vukovar, including the new Act on Areas of Special State Concern.This article deals with the news referring to the payment of profit tax and capital transfer tax in the areas of special state concern.
The article presents the complete review of business events in terms of taxes and book-keeping in the case of cancellation of business operations of independent crafts businesses. A crafts business can stop operating due to several reasons such as the free will of the craftsman or violation of the law if certain conditions of business operations have not been fulfilled usually in accordance with the Crafts Act. The crafts business stops operating due to misappropriation too, of which there are two types – misappropriation with the continued operations of the crafts business and without continuation of the operations. In practice the most common way of cancellation of business operations is liquidation, i.e. the permanent cancellation of crafts operations.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
The liquidation of crafts businesses and other independent activities is neither included in the provisions of the Crafts Act, nor do the tax provisions provide any detailed instructions how to act in such a situation. Due to the fact that the liquidations of crafts businesses (‘profitmakers’) have become quite frequent the article provides guidelines what is to be considered and what obligations are to be fulfilled in terms of accounting and taxation.
Autor: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
The RRiF issue no. 08/08 presented in general the various ways of selling goods and providing catering and tourist services in the open, including the general and special conditions under which such sales or provision of services can be performed. This article deals with the additional conditions and the way of selling or providing services in various ways as well as the obligations of the salesmen or service providers.
The new Rulebook on Classification, Minimum Conditions and Categorization of Catering Facilities – Campsites regulates the types of campsites, the minimum conditions, categorization, categories, the conditions for specific categories, the marks for specific types and categories, the way of marking specific types and categories and the way of categorization. The campsites which are categorized with one, two three or four stars are obliged to obtain the decision on categorization within two years after the new Rulebook came into effect, i.e. until 9 July 2010. The article deals in more details with the new conditions for provision of catering services in campsites.
The employment status is based on the contract on employment and registration of the employee for obligatory insurances. According to the Art. 16, Par. 5 of the Labour Act the employer is obliged to deliver to the employee a copy of the registration form for obligatory health and pension insurance within 15 days after signing of the contract on employment or delivery of the written confirmation on the signed contract on employment, i.e. the beginning of employment. The registration for obligatory health and pension insurance is also compulsory for all the persons who start self-employment such as crafts business, free professions, agriculture and forestry and other persons who have decided to pay the tax according to the business records instead of paying the tax after deduction.
Maternity leave is one of the rights of female employees according to the Labour Act, whereas the self-employed and unemployed mothers have this right according to the Act on Maternity Leave of Self-employed and Unemployed Mothers. According to the Act on Obligatory Health Insurance in the period of the maternity leave they have the right to the compensation as obligatory insured persons by the Croatian Institute for Obligatory Health Insurance. From 1 January 2009 parents will have the above stated rights according to the Act on Maternity and Parent Subsidies.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
