Upon drawing up the profit tax report for the year of 2007, which is to be submitted by the end of April 2007, tax payers are obliged to apply the amendments of the Profit Tax Act and the amendments of the Rulebook on Profit Tax, which came into effecton 27 December 2007 but refer to the whole tax year of 2007. The article presents the procedures of an entrepreneur regarding the determination of the profit tax liabilities and submitting of the tax report to the Tax Administration.
Autor: Mr. sc. Đurđica JURIĆ, dipl. oec. i ovl. rač.
The main topic of this article refers to sales activities. Its aim is to point to the particular business events in wholesales and retail sales activities which may considerably affect the annual statement – either referring to the evaluation of commodities or their influence on determination of the profit tax base.The article deals with the specifics of business events in sales in order to make corrections in calculations, tax calculation procedures and entering in the business records of salesmen when drawing up their annual statements.
Autor: Mr. sc. Đurđica JURIĆ, dipl. oec. i ovl. rač.
In order to draw up the statement of production correctly it is important to follow the provisions of the Accounting Act and the International Accounting Standards, especially no. 2 – Inventories, i.e. the revised IAS no. 2 – Inventories, the International Standards on Financial Reporting for Large Enterprises and all other norms which are to be applied upon drawing up of production statements. The article deals with the specifics of the production statements and business changes referring to these statements in order to draw up annual statements correctly and to avoid the possible errors.
Autor: Emica TRCOVIĆ, dipl. oec., prof. i ovl. rač.
The specifics of hotel and catering industries refer not only to the specific way of service provision according to the Act on Catering Industry but also to the special VAT rate of 10% on accommodation accordingto the law. Although this activity is similar to sales activities, in terms of accounting it should be recorded as a service activity in which there are elements of production. The annual listing – stock-takingin this business is a little more complex due to various stages the stocks of raw materials and materials go through (storing, treatment, processing, defrosting, heat treatment, etc.). This article deals with the annual stock-taking in catering industry.
Autori: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač. Mr. sc. Vlado ANDRIJAŠEVIĆ, dipl. oec.
The article deals with some specifics of the business events which considerably affect the contents and structure of the annual financial reports of companies and physical persons engaged in transportation services and have to pay the profit tax.The article presents tax and accounting specifics of public transportation of passengers and goods. It includes the business operations of companies and physical persons (who pay profit tax) that providetransportation services not for their own needs.
The sales and service activities comprise the combination of sales of goods and provision of services i.e. sales of spare parts, disposable goods for maintenance, replacement, finishing operations or overhaul of the things which are to be re-sold, etc. The accounting of these business events requires abroader knowledge of the elements of calculation, warehousing, tax regulations and cash transactions. Some tax and balance sheet solutions, which are different than in other business activities, are presented on some concrete examples. These specifics should have been considered when recording business events during the year of 2007.
Autori: Dr. sc. Vlado BRKANIĆ, ovl. rač. i ovl. rev. Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač.
Upon drawing up of annual reports the accounting in construction business should take into consideration a number of specifics of this industry.The article deals with the procedure of drawing up of the annual business report including the valid regulations and accounting norms in 2007.
Autor: Dr. sc. Vlado BRKANIĆ, ovl. rač. i ovl. rev.
Besides the public utilities, which most often apply the IAS no. 20, there are other companies, the owners of which are individual legal or physical persons. The Government subsidies include subventions for employment, purchase of long term tangible assets or deliveries of public importance and alike. The Government subsidy is not always tax free, which means that in some cases the corresponding taxes have to be calculated and paid.
Autor: Dr. sc. Vlado BRKANIĆ, ovl. rač. i ovl. rev.
The agricultural activity has a number of specifics which differ from other activities in terms of work technology and accounting methods and techniques, which requires the explanation of the best way of presentation of assets, liabilities, equity and business results in such circumstances. The author of the article explains the essencein the accounting of agricultural activities, the way of determining production costs, possibilities and methods of accounting investments into agricultural production and the way they should be recorded infinancial reports.
After drawing up all the basic financial reports in accounting it is necessary to make the analysis of business results for all the interested parties. One of the seis the company supervisory board. Financial reports present the basis and the main source of information because they show the most important relations and correlations within the company. They provide informationon indebtedness, profitability, activities and liquid ty including some other indicators which help to determine the quality of company management. The article presents drawing up of report on business results of a company and necessary analyses.
Business entities can operate in a foreign country. Their operations should be complied to the regulations of the countries they do business in.The organisational form of their operations in a foreign country can be different: as a legal person, as crafts, through their permanent business unit and alike. Different forms of business operations of domestic business entities in a foreign country depends on the difference of business operations in foreign countries. Each domestic business entity is to decide which of the models of business operations is the most appropriate one for them.The author of the article points to some regulations referring to the business operations of domestic business entities in a foreign country, especially if they perform these operations through business units, which according to our regulations have in principle a form of a branch office.
Autor: Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
The financial reports of non-profit organisations for the year of 2007 are to be submitted to the State Audit Office until 29 February 2008. Financial reports are to be submitted by large non-profit organisations only.Statistical reports are to be sent to the Financial Agency until the end of February 2008 also by large non-profit organisations only.This article presents a brief summary of information important upon drawing up of financial reports.
Autor: Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
There are various mechanisms ensuring the effectiveness of corporate management. Besides the legislation and controlling mechanisms used by the corporate management participants (shareholders,creditors, etc.) the external audit becomes more significant in every day practice. Although it could have a more active role, the external audit has however become an inseparable part of a good practice in corporate management. Due to its increasing importance as a mechanism of ensuring the effectiveness of corporate management the article deals with the relationship of external audit to management structures – management board, supervisory board and the general assembly of the company.
Since 1 January 2008 it has not been necessary to report all the credit transactions abroad to the Croatian National Bank. The largest number of private lyowned companies has remained out of range of the statistical monitoring of credit transactions abroad. The first reports from the new system of statistical monitoring of credit transactions abroad will be submitted to the Croatian National Bank at the beginning of February 2008. The article presents the changes in the new system of reporting on credit transactions abroad.
The obligation of tax payers to prepare the final VAT calculation does not only include drawing up of the annual report but also the control of the correctly calculated turnover tax on goods and services for the previous tax year as well as possible corrections.The final VAT calculation is to be prepared on the PDV-K Form, which has not been changed compared to the previous year (2006). This article deals with the specifics of drawing up of final reports including some important view points of the Ministry of Finance referring to the legal persons and »profit makers« and the craftsmen »income makers«.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
According to the provisions of the Act on Income Tax and the Rulebook on Income Tax not all the citizens – tax payers are obliged to submit the income tax report. The taxes paid on salaries, pensions, fees, receipts according to the temporary service contract or the author’s contract, dividends and share in income (realised in the period 2001-2004), rental fees (if the renter is not included in the VAT system) and other receipts are regarded as finally paid taxes and the income tax report does not have to be submitted. However, every citizen has the right to submit the income tax report if he/she has realised that the final calculation shows the tax over payment due to equalisation, progressive taxation or use of some tax reliefs.The article describes the procedure of drawing up and submitting of tax reports of citizens.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
The liability of contribution payment to chambers of trade in 2007 has not been changed in 2008. Accordingly, the craftsmen and other tax payers will continue paying the contributions in this year according to two bases, in the lump sum and according to the percentage of income i.e. profit. The new »excerpt« of the Decision on Contribution Payment in Lump Sum was made by the Croatian Chamber of Trade in 2008. The article deals with the procedure of determining contributions to be paid to chambers of trade.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
The entrepreneurs - legal persons who were producing or selling products and services stated in the Ordinance on determination of products and services for which the notes on prices and margins are to be submitted for monitoring, were obliged to inform the Ministry of Economy, Labour and Entrepreneurship on every change of the price or margin. The author of the text points to the fact that the above stated Ordinance was terminated in October, 2007.
- COURT PRACTICE OF THE SUPREME COURT OF THE REPUBLIC OF CROATIA -The non-regular termination of contract of employ ment by one of the contract parties is the final measure of this party in the case when the other contract party seriously breaks all the contract obligations so that the continuation of the employmentis not possible. This is the so-called instant termination of employment without a notice period. Since the law maker has not stated any examples of the cases in which there is a reasonable doubt for such termination of the contract of employment, the court practice has an important role. The article describes some court decisions referring to the disputes in labour relations.
A child allowance is a cash receipt used by a parent or a child allowance beneficiary used for supporting and raising children.The right on and the amount of the child allowanceis determined according to the amount of income of all the household members who are child allowance beneficiaries and the number of children. The funds for financing of the child allowances are provided from the state budget. The child allowance is paid monthly in a current month for the previous one.
The author of this article presents legal presumptions for statutes of limitations for some kinds of receivables, gives comments on the expired deadlines according to the law which has not been applied in the practice and explains when and how the creditor can prevent or stop the statutes of limitations coming into effect.