Accounting of the profit tax should provide the answers to the questions arising in such situations, i.e. how to present the profit tax in the profit and loss account i.e. balance sheet. There is always an attempt to present a real result in the financial reports under the given circumstances and knowledge. This article deals with the obligations and possibilities of application of the Croatian Financial Reporting Standards which regulate the issues of presenting the profit tax in the financial reports of small and middle-sized companies.
The estimate of the credit risk of a bank client represents the key element for establishment of business relations with clients, decision-making on crediting and determination of the credit amounts and interest rates. For such estimate important are financial and non-financial components. The financial component comprises the analysis of the company’s characteristics, its co-operation with the bank so far, the characteristics of the management and the company owner(s), the degree of dependence on customers, suppliers, the expected trends in industry, etc. In view of the financial component the text deals with almost all the groups of financial indicators, where by each indicator is ranked and evaluated.
Autori: Prof. dr. sc. Ivica PERVAN Boris Peko, dipl. oec.
The storing of goods or materials is an interphase in the sales of goods, which should last as short as possible or should not exist at all. However, the receipt (take-over) of goods i.e. the transfer of risk upon purchase of materials and other goods is to be taken seriously. The calculation and distribution of costs of the received goods is the final document (calculation) with which the receipt and recording ends in the inventory or material accounting and the received stocks become the issue of balancing accounts. This article deals with some issues and suggestions how to improve the stock management and to reduce costs.
Autor: Dr. sc. Vlado BRKANIĆ, ovl. rač. i ovl. rev.
Although the amendments of the Income Tax referring to the increase of the basic personal deduction from 1,600.00 to 1,800.00 HRK came into effect on 1 July 2008, the nontaxable amounts of scholarships have not been changed. Accordingly, it can be concluded that the scholarships and the personal deduction are two separate categories. However, parents and other tutors should take care of the amount of the scholarship their supported family member or a child has received. There are a few types of scholarships.This article defines the conditions that should be fulfilled by the payer upon payment of the non-taxable scholarship.
The Minimum Salary Act regulates the employees’ rights to a minimum salary for a full-time work on a monthly basis, applicable to all the employees. Collective Agreements regulate the lowest salaries according to which the salaries for more complex jobs are determined, where by such salariesare lower. The above stated Act does not change the role of the lowest basis for payment of contributions in all other cases. There are many unsolved issues in the practice referring to the application of the Minimum Salary Act and its impact on the basis for contribution payments, which has not been regulated by the existing labour legislation. The author of the text offers practical solutions with comments.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec., ovl. rač. i ovl. rev.
Since mid June 2008 there have been some novelties in the Distraint Act including the alteration of the distrainton salary, which represented a problem even before these novelties especially in the case of priority of execution of the salary distraint. Regarding the salary distraint the amendments of the Family Act came into effect this year. These amendments refer to the distraint in family matters.
The global process of increased Cupertino in the fields of labour and capital refers to the Republic of Croatia too.Therefore, all the fields of economy are faced with the new situations, which need to be solved in accordance with the regulations of the Republic of Croatia and the international contracts signed between the Republic of Croatia and other countries. This article deals with one segment of the entire globalisation process – the tax and social status of the workers employed in a foreign country and sent to work for the company with its headquarters in the Republic of Croatia.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
The purpose of the internal audit is to help the top manage mentin realisation of their business policy, which comprises the mission, vision and goals set by the management and precisely determined in the strategy of the company’s development. An internal auditor provides the certificate that certain procedures stated in various company’s by-laws are actually carried out and accordingly that the risks are better managed. The purpose of the internal audit is to draw attention to the top and other management to incorrectness and in such a way prevent more serious damages in the business operations.
If the auditor in the audit procedure does not act as an expert and issues an incorrect report on audit of financial reports, he/she will bear the responsibility according to the contract and out of the contract. The incorrect audit report of financial reports represents damage to the client (who ordered the audit) and to the third parties (investors, creditors, suppliers, etc.).
Na svojoj redovitoj sjednici održanoj od 16. do 20. lipnja 2008. Odbor za međunarodne računovodstvene standarde je raspravljao o amandmanu na MSFI 5 – Dugotrajna imovina namijenjena prodaji i prestanak poslovanja, godišnjim poboljšanjima standarda, konceptualnom okviru – elementi: definicija obveze, istraživačkom projektu vađenja ruda i mineralnih bogatstava, mjerenju fer vrijednosti, prezentiranju financijskih izvještaja, instrumentima zaštite od rizika, ratificiranju tumačenja MSFI-a, MSFI-ima za privatna poduzeća, tehničkom planu aktivnosti i vrednovanju financijskih instrumenata na tržištu koje više nije aktivno. U nastavku se detaljnije prikazuje tijek rasprave i zaključci doneseni u vezi sa MSFI za privatna poduzeća (SMEs).
MSFI za privatna poduzeća (donedavno mala i srednje velika poduzeća, ili SMEs)
The article deals with the measures referring to the improvement of operations adopted by the European Commission. A special attention is paid to the state subsidies for employment and development, subsidies to ship yards, VAT rates, tobacco excise duties, natural gas market, pay tollsfor trucks, reduced power use, Business English, etc.
Planning of investment projects is carried out for the future and the future is not deterministic but stochastic. Therefore, such a fact requires from the investment project leader to be responsible in planning the future of the investment project. The nearer the future is, the lesser are the risks and uncertainty of planning, whereas they grow if the period of planningis extended. A specific problem upon planning represents the impact of inflation on price trends in the future. Therefore, planning is usually carried out according to the permanent prices from the period of drawing-up of the investment project.
An internal profitability rate is the rate which reduces the net present value of the project to zero, i.e. equalises the present value of receipts and the present value of expenses. This rate actually shows the effectivity of an investment project depending on the financial resources and can be regarded as the maximum interest rate on the credits for such investments. The application of the method of the internal profitability rate is important when it is difficult to determine the real discount rate for reducing down to the present value.
Statistical models can successfully been applied in almost all sciences. This primarily refers to the economic sciences, in which most events can be analysed by means of statistical methods. They are used for estimates, risk measuring, research of trends, analysis of relations and factors which define them, etc. The article deals with the main statistical methods and models including the examples of their application in forecasting, monitoring and directing of company’s business activities. The presented methods of dynamic analysis of time sequences provide adequate data, conclusions and foundations in order to make business decisions regarding the improvement of the company’s business activities.
The preparation activities referring to the entrance into the European Union comprise preparations and changes in the taxation system. The VAT system in the Republic of Croatia is based on the Sixth Directive. However, some taxation are as have not been completely adopted, so in the present harmonisation period they are being adjusted to the new taxation requirements. The author of the article writes about the market value as the basis for VAT calculation upon delivery of goods and services between subsidiaries and stresses the new way of market value determination as defined by the EU Directive 2006/112.
The European Commission, actually the General Direction for Taxation and Customs Duties in Cupertino with the Eurostat (EU Statistical Bureau) made in 2008 a special report Taxation Trends in the European Union. It analyses the data from all the member countries and Norway for the period 1995-2006. The official EU website presents a summary comprising the main directives of the report. The article contains the translated and adapted summary of the above stated report in order to get to know the taxation trends in the European Union.
The first part of the tax status of athletes was published in the RRIF Magazine 08/08. This second part deals with the issues of taxation of athletes who are non-residents and the tax status of awards for sports achievements, sports scholarships and compensations for sports training. The final part of the article deals with the submission of income tax reports.
Tourist services in nautical tourism are mostly provided in the ports and on the motor vessels of nautical tourism. The new Rulebook on Classification and Categorisation of Ports of Nautical Tourism has been applied since 1 July 2008. The most important novelty in the above stated Rulebook is the fact that the group of vessels which are to be categorised (including charter boats) has been enlarged. In view of VAT payment, the possibility of application of the 10% VAT rate for accommodation services on the vessels for more than 24 hours (charter) has finally become more clear.
Upon receipt of the final decision of the authorised body of the pension fund, according to which the employee has the right to receive a disability pension, the employer should firstly determine whether it is a general or professional disability. In both cases the employee has the right to disability pension. In the case of general disability the employee cannot continue the employment status i.e. to receive an income from employment, whereas in the case of professional disability the employee does not necessarily need to cancel the employment status. Upon cancellation of the contract on employment the employer may in some casesbe obliged to make severance payment.
The bankruptcy procedure of the company provides to employees a new possibility for salary payment. The employees’ rights in case of bankruptcy are regulated by the new Act on Ensured Employees’ Claims in Case of Employer’s Bankruptcy, which came into effect on 31 July 2008. In case of the employer’s bankruptcy the employee has the right to unpaid salaries, compensation for sick leave, compensation of salary for unused annual holidays, severance payment and compensation of damages in case of accidentat work or professional illness.
The total quality management (TQM) is closely connected to the business results and business success of a company. The quality and standards are the key factors of success on the market. A customer wants, requires and expects more. The goal of the TQM is to meet customers’ needs and to supply the market according to its demands. The aim of this paper is to explain the connection of the TQM and business excellence. Two indicators of business excellence are specifically analysed: work productivity and competitiveness through the perspective of the total quality management.