The entrepreneurs, the physical and legal persons defined in the Art.2 of the Accounting Act were obliged to deliver the balance sheet, the profit and loss account and additional information for the calendar year of 2010 to the Financial Agency until 31 March 2011, for statistical and other purposes,. For the purpose of public announcement enterprises are required to submit to the Financial Agency their annual financial report until 30 June 2011. The entities under obligation of preparing annual consolidated financial statements for 2010. shall submit them until 30 September 2011. In the article the author describes in detail the procedure of the preparation of financial statements to be publicly announced.
The consolidated annual report should present the results of operations and the financial situation of the companies included in the consolidation as a whole. A consolidated financial statement should include a review and analysis of the development, the results of the operations and the financial position of the companies involved in the consolidation as a whole. Such a statement should include financial and other indicators for better understanding of the results of the operations and development. The article refers to the regulations and the accounting standards which should be considered in the process of preparing consolidated financial statements.
The new Act on Cooperatives introduced some news related to the establishment and operations of cooperatives. The author explains the basic provisions of the Act related to the operations of cooperatives with a special emphasis on the specifics of the accounting of some business events (payment of membership fees, profit sharing, etc.) in cooperatives which were established with the aim of making a profit.
The obligation of purchase and use of protective clothing and footwear for specific activities is determined by special regulations. The entrepreneurs who do not have a legal obligation to wear protective clothing and footwear may determine such a rule in company's by-laws (such as rulebooks, decisions, etc.). Accordingly, the purchase of protective clothing and footwear can be a tax deductible business expense up to the amount of the purchase costs and may be recorded as the expenses for net salaries in kind. Such a receipt can be taxed according to the regulation referring to the income from capital as exemption. In the article the author presents the determination of protective clothing and footwear in the Croatian legislation and explains the accounting of purchase and wearing of protective clothing and footwear.
The contemporary accounting, especially the International Financial Reporting Standards which represent the reporting based on the principles, not rules, provide to the management a free choice of various accounting methods and alternative procedures. Such flexibility in the hands of the fair management results in the objective financial reports. However, it can be misused by the unfair management and instead of providing a fair insight it can be used to delude and to make an illegal gain. The author of the article presents the procedures which can help in prevention and revealing of window-dressing of financial reports.
A forensic accountant is an expert for the investigation of criminal and other illegal activities in the company's operations and the operations of other business entities, which refers to the field of accounting and accounting reporting. A forensic accountant has a comprehensive knowledge on business and economics, understands the business events and conditions as well as their presentation in accounting documents, business records and accounting reports. In this article the authors explain the vocation of a forensic accountant and stress the discrepancies between the European and Anglo-American systems of forensic accounting.
Autori: Dr. sc. Franc KOLETNIK Melita KOLETNIK KOROŠEC
This article analyses the compliance of the accounting regulations in the Republic of Croatia with the accounting regulations in the EU in the part related to the financial sector - financial reporting. The definition of compliance or non-compliance is based on the Fourth and Seventh Directive and the Accounting Standards which make up the accounting regulations in Croatia and the EU.
This workshop deals with recording of the investment in company's own fixed assets and the acquisition of fixed assets at a discount in the invoice. If on the basis of lease agreement investment in fixed assets of a budget user is made, investment from the perspective of accounting may or may not have a characteristic of the increased value of the existing fixed assets of a budget user. The accounting characteristic of this investment depends on the contractual relationship between the contract parties and the provisions of special legislation governing the obligations of leasees. Therefore, only when each investment in the existing fixed assets of a budget user has been observed separately, the way of its recognition can be determined. If the fixed assets are acquired without being charged by the person outside the general state jurisdiction regardless of the type of documentation that accompanies such a method of its acquisition, such assets are considered a gift (donation). Such an acquisition of fixed assets should be recorded correspondingly.
Autor: Mr. sc. Nada DREMEL, dipl. oec., ovl. rač. i ovl. rev.
If a person employed by the association is paid the compensation for sick leave due to temporary incapacity for work from the 43rd day of sick leave by the association, and then such a compensation is refunded to the association by the Croatian Health Insurance Institute, such a compensation does not represent the expenditure but the receivable for compensations which are reimbursed. The article presents an example of the calculation of the compensation for sick leave and its recording in the accounting.
Autor: Mirela GLAVOTA, dipl. oec., ovl. rač. i ovl. rev.
The establishment of non-profit organizations is principally not associated with earning a profit, but the establishment of non-profit organizations is motivated by achieving and by encouraging socially beneficial goals or interests of certain groups of citizens or groups of legal entities. Non-profit organizations typically employ a small number of employees. On the labour market they are equal to other employers in view of the implementation of regulations of labour law and other regulations governing employee's rights and obligations of the employer. Regarding the system of taxation of receipts paid to individuals by non-profit organizations in some cases they have a different position compared to other legal entities due to their special, general social activities.
Autor: Mirela GLAVOTA, dipl. oec., ovl. rač. i ovl. rev.
A holiday bonus is a substantive right of an employee that can be achieved on the basis of the by-laws governing employees' rights. Depending on the company's tax position the employer may be allowed under certain conditions to pay the holiday bonus non-taxable, whereas the amount to be paid may be taxed. The article describes the procedure that the employer should carry out in calculating and payment of holiday bonuses of employees.
The payment of salary, bonuses or thirteenth salary from profit is generally performed in the current year for the previous year, usually after the submission of the final accounts. It should be kept in mind that the contributions on such payments are paid at the rates and on the base valid in the previous year, which is calculated into the years of service and thus the salary to which the contribution for pension insurance is paid, enters into the pension base for the previous year. In contrast to this, the income tax is paid according to the regulations valid in the years when the salary or bonuses were paid, and belongs to the tax period (year) in which the payments were made. Income tax and surtax are calculated cumulatively for all the payments in the month in which the salaries are usually paid for the month of the current year so there is a very high income tax progression. In such a case a special attention should be paid to the marginal base for payment of contributions for pension insurance on the annual basis, in order to avoid the overpayment of contribution for the first pillar of pension insurance.
Autor: Lucija TURKOVIĆ-JARŽA, dipl. oec. i ovl. rač.
Every employee does not have the same payroll list comprising the salary and salary compensation. The data on the payroll list and the compensations paid by employers will be reported in accordance with the schedule of working hours for each employee. The author of the article presents the way of presenting the calculation of salary and salary compensations for an employee, and states whether all employers should have the same payroll list.
Taxpayers should be aware of their rights relating to the payment of taxes. Specifically, in the case of tax inspection there can be violations of the taxpayer's rights in tax procedure. Then the taxpayer has the right to an appeal, whereby a determined procedure is to be followed. The taxpayer should pay a special attention to deadlines and other formal elements of the appeal so the appeal would not be rejected due to such formalities.
This article analyses the positive audit report, the responsibilities of auditors after expressing an opinion on the financial statements of the company, the provisions of the Audit Act related to expressing the opinion, specifies the contents in the positive audit report in order to be in accordance with the International Auditing Standards and shows the example of expressing a positive audit report.
In April 2011 the International Accounting Standards Board (IASB) published the text of the future international standard, IFRS 11, Investments in associates and joint ventures, which will replace the existing IAS 28 of the same name. The text of the new standards is expected to be published by the end of May 2011. This standard determines accounting of investments in affiliated companies and sets requirements for using the equity method in accounting of investments in affiliated companies and joint ventures.
The basic prerequisite that Croatia has to achieve is to become a member of the EU n order to use the EU structural funds. This will mean that it must participate i.e. contribute to the common EU budget through the membership fee in the Union. In addition to this requirement, it is assumed that by then the national laws will be complied with the EU laws. The structural government and public institutions for managing EU funds should be established and operate efficiently and be experienced. A prerequisite for successful use of structural funds are developed capacities of end users and of all those that in some phase participate in the implementation of the funds.
The European Commission adopted the proposals which should improve the legislation related to the operation of the unique market, the directive on working time, the directive on data protection and other issues referring to the EU member countries.
Upon application of the regulations referring to money laundering prevention and terrorist financing, some entities under obligation of their application should under certain circumstances file a report to the Office for Prevention of Money Laundering. The procedures and forms of reporting on this type of transaction are determined by regulations.
This article analyses and compares the data and the results of measuring by means of the standardized and other financial indicators, based on the annual financial statements for 2010 that selected companies submitted to FINA for statistical research The financial analysis was made in the largest retail chains, which were compared to other important companies in Croatia. Firstly, many companies enter into business relationships with the largest retail chains so they may be interested in their financial position and their financial success. Secondly, all the citizens - consumers spend an enormous portion of their income at these businesses. The question arises whether they have got the corresponding counter-value for the money paid, i.e. whether they pay for the shopping experience for the quality and reasonable price. Finally, the question is whether they achieve the best buy for the money spent. The analysis covered 12 companies, regarded as the most important retailers.
Autor: Dr. sc. Vlado BRKANIĆ, ovl. rač. i ovl. rev.
Before making a decision on the particular investments any rational businessman would conduct a number of analyses to check the effects of future investments. The same procedure should be applied to the investment into the local public infrastructure. They are also financed partly from their own resources and partly from bank loans or municipal bonds. However, moral principles require that upon the investment in local public projects a greater attention is paid to the analysis of future impacts because their own sources of financing are not private choices, but those of tax payers. Accordingly, in order to protect their assets, tax payers should require increased attention to such an analysis and the selection of methods of analysis.
When on 1 January 2011 the new rules of the International Chamber of Commerce regarding the use of domestic and international INCOTERMS 2010 became effective many ambiguities in their application by the importers were observed, primarily in the understanding which part of the transport costs is to be added to the price of goods from the seller's invoice to obtain the customs value of the goods. The author of the article writes about these issues with a special emphasis on two new terms DAT and DAP.
According to the Catering Industry Act a farm represents a farm household or a family farm enrolled in the Farm Register in accordance with the regulations of the Ministry of Agriculture, Fisheries and Rural Development, which provides catering services according to the Act. The Rulebook on amendments to the Rulebook on Provision of Catering Services by a Farm Household became effective on 26 April 2011. The author of the article points to the news referring to the provision of catering services at a family farm according to the Catering Industry Act and the above stated Rulebook.
As we approach the summer time, and thus the time of annual holidays, there is a larger number of frequently asked questions regarding their legal regulations and the ways of their use. The author of the article provides the answers to the questions how to determine the length of the annual holidays of employees, when the employee has the right to the full, and when to the proportional part of the annual holiday, how to use the annual holiday in parts, in which cases and how to pay the employee the compensation for the unused holidays and many other issues that arise in practice.
Since 1 January 2011 the rights from health insurance in case of injury and professional diseases have again been exercised within the rights from the obligatory health insurance provided by the Croatian Health Insurance Institute under the Act on Amendments to the Act on Obligatory Health Insurance. The determination of these rights by the provisions of the amended Act on Obligatory Health Insurance and the process of implementing this right is described in this article.
Based on the legal standards provided under the provisions of the Art. 108. of the Labour Act, in deciding on the extraordinary termination of the employment contract, the employer has to consider not only the facts that the extraordinary termination would be based on, but also the circumstances and the interests of both parties. If all these point to the admissibility of extraordinary termination of the employment contract, the employee can be informed about the termination of employment in accordance with the procedure stated by the Article. It is not simple to make a proper estimate whether the particular fact regarding the misconduct of an employee justifies the decision on this final measure which terminates the employment contract immediately without a notice period, which in most cases has a negative impact on the employee.
The right of employees to the paid holiday bonus is regulated by labour law. Besides the Labour Act as the main group of provisions in the field of labour law, such a right can be determined by the collective agreement, the rulebook on labour and the contract on employment. The employee cannot waive the right to the paid holiday bonus, since such a right is guaranteed by the Constitution of the Republic of Croatia, The right to the annual holiday and the right to the paid holiday bonus of the public and government servants are determined by the provisions of a few collective agreements. The author of the article writes about the collective agreements which determine the right to the annual holiday and the way such a right is determined, including the right to the paid holiday bonus.
Autor: Mirela GLAVOTA, dipl. oec., ovl. rač. i ovl. rev.
This article describes the small town of Zug, located in Switzerland near Zurich, which is the strongest in the resources and economic development. In Zug a lot of global companies have their headquarters. Such attractiveness is based on the taxation policy characterized by lower taxes, which attracts businessmen. Therefore, it not a coincidence that more than a third of processed oil, more than a quarter of all metals and agricultural raw materials, sugar, cotton and other commodities are traded in Switzerland.
