After the Amendments to the Income Tax became effective on 1 July 2010, the amendments to the Rulebook on Income Tax, which explain and amend the provisions of this Act, were passed too and became effective on 8 November 2010. The article deals with the changed way of determining liabilities for income tax.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
Four months after the Amendments to the Profit Tax became effective, the Amendments to the Rulebook on Value Added Tax came into effect on 4 November 2010. Its provisions are to be applied in the procedure of submitting profit tax returns for 2010. The above stated Rulebook contains a new form of profit tax return. The article presents a brief review of the changes and amendments to the Rulebook on Value Added Tax.
Autor: Mr. sc. Đurđica JURIĆ, dipl. oec. i ovl. rev.
The need to adjust and modernize annual financial reports according to the requirements of the IAS no. 1 – Presentation of Financial Reports has resulted in the changed contents of the profit and loss account and the balance sheet. The changes comprise cancellation or introduction of some positions in these financial reports such as the supplement on other total profit and the regulation on the minimum contents of the report on equity alterations. These changes refer to a certain extent to small and middle-sized companies, whereas the companies obliged to apply the IFRS have to draw up the supplement to the profit and loss account regarding the total profit.
Autor: Dr. sc. Vlado BRKANIĆ, ovl. rač. i ovl. rev.
In most companies real estate represents a substantial part of their assets. Therefore it is important to define the purpose and the period of use of each real estate in order to apply the requirements of the particular accounting standard. The author of the article explains the accounting procedure in the case of reclassification of real estate due to the changed purpose on or from the investments into real estate.
One of the most common topics in controlling of planning refers to the costs. The accounting of costs has been best developed in the field of production. However, the topic of controlling also comprises the so-called costs of the period or unstorable costs, which can be divided into the costs of sales and the administrative costs.
The first part of the article, which refers to creative accounting and forging of financial reports, presents the ways, procedures and methods often used in practice in order to cook the balance sheet and manipulate financial reports. According to the specific elements of financial reports (positions in the balance sheet) it is presented how and in which way companies' management boards draw-up and present fake and deceiving financial reports. The readers of financial reports (banks, investors, business partners, financial institutions) as well as the controlling organs (tax inspectors, internal and external auditors, controllers, etc.) should be acquainted with the techniques and the ways of cooking of balance sheets in order to be able to recognize and reveal them in the financial reports.
The authors of the article recommend to accountants to check whether they have entered business events in the ledger professionally according to the valid documents and pursuant to the date of their emergence. Analytical records show the types of assets, the deadline of settlement of liabilities and the nature of expenses. Due to the fact that such recordings in accounting are prepared during the year, some of them not even being completed, there is a possibility of errors, changes of regulations and alike. Therefore, before drawing-up annual financial reports it should be checked whether all business events have been presented according to the accounting standards and regulations.
Autori: Mr. sc. Katarina HORVAT JURJEC, dipl. oec. i ovl. rač. Mr. sc. Đurđica JURIĆ, dipl. oec. i ovl. rač. Tamara CIRKVENI, mag. oec., univ. spec. oec. Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev. Mr. sc. Šime GUZIĆ, dipl. oec. i ovl. rač. Zrinko TRCOVIĆ, dipl. oec.
This workshop deals with recording of procedures with the book-keeping entries presented on the debit side of the accounts in the Group 93 Calculated Expenses of Operations and the Group 94 Calculated Expenses for Purchase of Non-manufactured Assets. They should be specifically considered since such accounts will be cancelled on 1 January 2011.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
This workshop comprises recording of the provided services paid by a credit card and the possibility of compensation to the representative's investments into real estate owned by the third person. Upon collection of payment for the provided services by a credit card the income of the service provider is not decreased by the charged credit card compensation. The obligation of VAT calculation, in case the service provider is obliged to calculate it, emerges in the time of service provision, not in the time of collection of payment by the credit card payer.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
Christmas bonus, a gift in kind and gifts to children are regarded as employees' tangible rights. Besides the above stated tangible rights, employers grant to their employees various compensations for expenses, supports and rewards. According to the tax regulations some of the supports can be granted to employees without taxation. The article deals with the ways of such payments and employees' requirements for such a right.
According to the Amendments to the VAT Act, which became effective on 1 January 2010, whereby the same provisions are to be applied in 2011, almost all the companies have to enter the VAT system if they fulfil the legal conditions. This means that the companies which in 2010 performed sales activities without VAT tax liabilities or made deliveries to the amount exceeding HRK 85,000.00, which would in 2010 be taxable according to the VAT Act, should enter the VAT system. The main criterion for entering the VAT system according to law is the amount of turnover realized in the previous year exceeding HRK 85,000.00. Exceptionally, at the beginning of their operations, companies may decided to voluntarily enter the VAT system during the business year, but before the first delivery of goods or services only.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
According to the Amendments to the VAT Act, which became effective on 1 January 2010, foreign companies should pay a special attention when delivering specific goods or services on the territory of the Republic of Croatia and should ask for an advice of a tax advisor regarding the need to enter the VAT system in the Republic of Croatia. A special attention should be paid to the type of service and to whom such a service is provided. A decision on applying the VAT system should be made according to the VAT Act, including all other obligations arising from it. After completion of delivery of certain goods or services in the Republic of Croatia the obligation of a foreign company to pay tax liabilities ceases and such a company makes a claim to exit the VAT system.
Autor: Mr. sc. Vlasta ROŠKA, dipl. oec. i ovl. rač.
The article is aimed at audit companies in order to point to the essential provisions of the Audit Act which are to be considered in the initial part of the audit i.e. planning. A good plan in the audit should help the clients to avoid inconveniencies at the end of the year and to reduce the audit risks during the final audit. The article explains the procedure of contracting the audit with new and old clients, including the phases of planning which have to be implemented in the audit methods pursuant to the regulations.
The article presents an agenda of the regular meeting of the International Accounting Standards Board held from 19-20 October, 2010. The emphasis of the discussion was made on the Rentals – IAS no. 17.
The project budget is a part of the entire documentation to be prepared for application of the project for non-refundable assets of the IPA Programme and other competitions such as the EU Programmes. This article presents the budget form for projects per each item and gives advice how to fill it in properly, stating the most common mistakes upon drawing-up the project budget and how to avoid them.
The EU Commission has announced the plan of the reform of the Unique Market Act in order to restore the trust of the Europeans in the social and economic strengths of the European Union. The article presents some measures of this plan.
Within the foreign currency system the Croatian National Bank has changed the way of reporting on transactions made between foreign currency residents and foreign currency non-residents. Accordingly, all the companies obliged to report on income and expenditure regarding the transactions with foreign currency non-residents become under certain circumstances foreign currency residents. The reports include the annual sales of goods, services and income. The first report on the sales realized in 2010 is to be submitted until 31 January 2011.
Only at the end of the year the craftsmen - income makers should determine whether they can be regarded as profit makers starting from 1 January, next year according to the amount of one of the following criteria: total receipts, realized income, fixed assets or a number of employees. The change of the tax status from income maker into profit maker is made according to the voluntary statement on 1 January 2011 or at the beginning of crafts activities. The article deals with the most important issues, obligations and tax consequences of the transfer from the income maker into the profit maker from the viewpoint of the value added tax.
Autor: Mr. sc. Ljerka MARKOTA, dipl. oec. i ovl. rač.
The physical persons who perform the activities of free professions, agriculture and forestry, i.e. all the activities which are from the taxation viewpoint equal to crafts activities and determine their income on the basis of business records according to the Income Tax Act, are obliged to pay income tax. However, they can, at their own will or according to the certain criteria stated in the Profit Tax Act, change the way of taxation and become profit tax payers and inform the Tax Administration on such a change. The article states what is to be done upon changing the way of taxation in the case when the criteria according to which the profit or income is determined are changed. It is important to create a basis in book-keeping records for such essential changes.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
On 1 November 2010 the amount of unemployment compensation paid by the Croatian Employment Agency was reduced. However, in particular cases the right to cash compensation can be extended. The article states the persons who are regarded as unemployed, how they can be registered at the employment agency and the amount of compensation for salary they can receive.
The compulsory pension insurance based on the individual capitalized savings is determined by the Pension Insurance Act, which became effective on 1 January 2002. All the persons under the age of 40 were obliged to insure themselves in the second pillar, whereas the persons at the age between 40 and 50 could insure themselves in the second pillar within 6 months after the above stated Act became effective. These are actually the first persons who started realizing pensions from the second pillar. Due to the insufficient information on the above stated issue the article deals with the way of determination of such pensions and their payment.
The right to the compensation of salary during temporary inability to work within the framework of the compulsory health insurance is determined by the Act on Compulsory Health Insurance. The authors of the article present all the rights exercised by the insured persons according to the Act on Compulsory Health Insurance.
The reason for extraordinary termination of contract on employment is always a current issue since the cases in the practice of labour relations are often between the reasons for extraordinary termination and regular termination of the contract on employment due to misbehaviour of an employee. The practice of the Supreme Court of the Republic of Croatia regarding review cases may be helpful, although each case has its specifics. The article analyses the viewpoints of the Supreme Court of the Republic of Croatia upon decision reviewing of the procedures of the first-instance referring to labour litigations.
The start-up of a bankruptcy procedure affects the rights and obligations of the parties as well as the possibility of settlement of receivables. Accordingly, the issues such as the statement on clearance and the contract on cession before and after the start-up of the bankruptcy procedure have become important. The author of the article analyzes the rules regarding clearance and cession from the viewpoint of the general rules and the specific rules stated in the Bankruptcy Act.
In practice there are frequent questions whether a travel order form should be issued for the vehicle owned by the entrepreneur (legal/physical) person. The term of a travel order form has now been determined by the specific act in the field of road transportation. Accordingly, a travel order form is not to be issued for transportation for one's own needs. However, legal persons often make a decision to issue such is form as a record of the use of the vehicle for one's own needs.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
