M41 - AccountingReturn

Within this article, the reader reads about the possibilities of processing stratified sampling in the MS Excel program. The subject stratified sampling is performed by means of a table, which stratifies the population on the basis of predefined formulas created by one of the authors of the article. The application of specific audit procedures is intended for small audit entities that use MS Excel to perform sampling, or for those audit entities that would like to ensure a change in the procedures for performing specific audit procedures on audit engagements through the use of other sampling methods that these audit firms usually don´t use. The procedure is also applicable to audit entities that would like to adjust the performance of sampling, within the stratified selection, with the knowledge gained by studying the article in question. In its practical part, this article will focus on the detailed procedure of sampling in the created tool, which is the stratification table. The introduction of the article focuses on the description of individual procedures and theoretical starting points performed in the process of a statutory audit, performance of audit tests and selection of samples, in which the article is based primarily on International Standards on Auditing (ISA) and manuals from the International Federation of Accountants (IFAC) and Deloitte Audit, which are provided by these organizations in cooperation with the Chamber of Auditors of the Czech Republic (KAČR).

Emission of the greenhouse gases has a significant impact on the environment of the whole planet. Innumerable international plenary sessions have agreed only on partial solutions. The signatory countries came up with the instrument which should improve the air quality- the emission allowances. The politicians and environmentalists involved in the Kyoto Protocol and subsequent Paris Agreement have negotiated emission reductions. Achievement of this goal is established for years 2005 - 2030. 43 % of current greenhouse gas emissions should be reduced. Each allowance represents the right to emit one tonne of carbon dioxide (CO₂) or the equivalent amount of two more powerful greenhouse gases, nitrous oxide (N₂O) and perfluorocarbons (PFCs). Allowances are distributed among individual countries, which allocate them free of charge to plants, factories and other fixed installations. These emission allowances can be the subject of trade between these operators. All these facts result in questions related to the accounting methods. How many allowances are needed? Should they be recognised as an asset? Is their price regulation necessary? Can emission allowances reduce greenhouse gases or are government subsidies and compensations - alternatively carbon taxes - more suitable for this purpose? Is the business environment more or less destroyed? The goal of this article is to contribute by critical discussion to easier, fair and true recognition of emission allowances.

The article analyzes selected factors of the audit of the financial statements of public research institutions. Specifically, it concerns the structure of auditors, the concentration of audit engagements in small number of auditors, the rotation of auditors and the disclosure of the remuneration for the audit company in the notes to the financial statements. The article mentions similar researches conducted in different types of non-profit organizations and the conclusions are then compared. The auditors of the financial statements of public research institutions are usually audit companies rather than the statutory auditors. Public research institutions, as well as other non-profit organizations, use the particular auditor for a long period of time. It appears, in the case of public research institutions, that more and more audit engagements are provided by one audit company. A significant number of public research institutions do not disclose the renumeration for the audit company in the notes to the financial statements.

The aim of the article is to evaluate the perception of the accountant profession in the Czech Republic by students of full-time and combined study at the School of Business Administration in Karviná. In order to achieve the objective of the article, a questionnaire survey was used. On the basis of the acquired nominal data, the perceptions of the accountant profession were examined using Pearson's chi-quadrate test and the Pearson´s coefficient of contingency. It can be concluded from the results that the perception of entrepreneurial risk associated with choosing a professional accountant does not depend on the form and field of university studies. On the other hand, the form of university studies influences the perception of whether the level of qualifications of professional accountants is reflected in their salary assessment and whether, due to the economic decline of previous years, the importance of professional accountants for entrepreneurs has increased. It was also found that the perceptions of the accountant profession in the Czech Republic are not dependent on the level of university studies. The results also show that the perception of the impact of the economic downturn over the past years on increasing the importance of professional accountants for entrepreneurs is not dependent on the field of study. The results also showed that the perceptions of accountants in the Czech Republic depend on employment.

Intangible assets play an increasingly important role in business management as their proportion on total assets is rising. Their recognition and measurement in financial statements is often complicated and is dependent on the requirements of a given accounting regulation. Intangible assets also influence company performance in a considerable way. Therefore, the aim of this article is to analyse the disclosure of intangible assets, as well as, the relationship between intangible assets and given ratios describing company performance. To do so financial statements of large companies located in selected regions of the Czech Republic, which were published in years 2010 – 2015, are analysed. The established hypotheses are tested using the methods of the trend analysis and the simple regression. The results of this research confirm that the amount of intangible assets disclosed by analysed companies does change over time. In addition to that, it can be concluded that the existence of intangible assets does positively influence company performance measured by the given ratios.

This paper deals with the issue of current changes in accounting legislation in the context of international harmonization. The ever-increasing process of globalization, development of international co-operation, foreign participation in domestic enterprises, and capital ties lead to the need to harmonize information from financial reporting so that it is internationally comparable. The paper aims to describe changes in the accounting of accounting entities resulting from the amendment of the Czech accounting legislation with effect from 1 January 2016. The new accounting regulation of the Czech legislation enabled the implementation of the European Union legislation, European Directive No. 2013/34/EU in particular, and increased compatibility with IAS/IFRS accounting system, which corresponds with the general efforts to harmonize accounting systems.

The article deals with analysis of Czech foundations' management transparency in the area of accounting and auditing. The foundations that have received contributions from the Investment Fund for Foundations are compared with the foundations that have not received such contributions. The main aim of this article is to assess if release of legislation regarding foundations in the Czech Republic, which has been in force since 2014, is appropriate. This includes, in particular, the Act on Foundations and Endowment Funds, and the termination of contracts for the transfer of contributions from the Investment Fund for Foundations to foundations. The results of the research can be used for further analyses of the impact of the new legislation on the transparency of foundations, as well as for discussion about the future form of laws regulating activities of foundations in the Czech Republic.

One of the most important tools of cost management is costing. Its predicative capability is significantly influenced by the costing subject definition as well as its relation to the costs incurred. The structure of costs reflected in the costing and the method of overhead costs allocation are also playing an important role. This paper points to the importance of correct quantification of the costs incurred (especially overhead costs) per a costing unit. For this purpose, enterprises use special mathematical methods. The selection of particular method of calculation depends on the nature of production process, technology used in production, ratio between direct and indirect costs in total costs of an enterprise as well as other factors. According to specialized literature, in vast majority of cases enterprises use surcharge calculation as a costing technique for overhead costs allocation. In this regard, the selection of the appropriate cost-allocation base is very important. The model examples illustrate the influence of application of various cost-allocation bases on the single output costing. The results of the questionnaire survey implemented amongst the companies from manufacturing industry, aimed at absorption costing, represent another resource data for the examination and validation of theoretical assumptions.

The paper examines goodwill as a potential subject of management decision-making. It begins with a premise that although goodwill can be of a very high value it is often kept in books without much interest of a company management. This reflects the fact that goodwill emerges as a result of past events and is therefore in only a very limited way useful for company management, which is mostly concerned with a company's future rather than the past. The paper therefore identifies primary (i.e. internally generated) goodwill as a better subject of management than the secondary (i.e. purchased) goodwill. It introduces possible method of its valuation and proposes its allocation to individual cash generating units as a possible technique leading to valuable information to be used by management in managing a company's performance.

This paper deals with the level of compliance of the financial statements to the disclosure requirements of the IFRS 3 Business Combinations. The analysis was performed on the financial statements of the companies listed in the PX and PX-TR market stock index of the Prague Stock Exchange. Financial statements of the period 2011 to 2014 were included in the research. The level of compliance is assessed through the D-score model which allows for an evaluation of the degree of disclosure in the financial statements. IFRS 3 enumerates the disclosure requirements in the form of list of rather detailed information which are required to be disclosed in the notes of the financial statements in the case that business combination occurred in the reporting period. D-score measures the level of compliance of the analysed financial reports with the list of detailed information prescribed by the IFRS 3. The research showed, that the level of compliance of the analysed financial statements varies between 47 % and 86 %. This paper however does not analyse the determinants that cause low level of compliance nor high level of compliance.

Consolidated financial statements present aggregated information for a group formed by the parent company and its subsidiaries. The existence of control is the most important condition to determine the relationship between companies within the group. This article focuses on the adoption of a novelised control concept introduced by IFRS 10. Companies quoted on Prague and Warsaw stock exchanges were chosen to illustrate the impact of IFRS 10. The article provides an analysis of consolidated financial statements in a year of the adoption of IFRS 10 and a year immediately preceding. Summarized findings reveal whether IFRS 10 had a material impact on consolidated financial statements.

Final account is a particularity of local government. All municipalities are obliged to compile it. The purpose of a final account is to summarize the yearly economic activity of a municipality. The aim of the article is to analyse the accessibility of final accounts to citizens based on a performed research. A municipality is the primary community of citizens. The law defines a municipality as an accounting entity obliged to keep books. Unlike companies, which compile annual report, a municipality compiles a final account. According to applicable legislation, a municipality is not obliged to make its final account public. The analysis of accessibility of final accounts has been performed within a selected district of the Moravian-Silesian Region comprising of seventy-two municipalities. The result is a finding that a vast majority of municipalities take advantage of the loophole in the law and forbid citizens from accesing the information on the economic activity of the municipality. The solution seems to be to amend the relevant legislation with the obligation to make the final account public, analogically to the obligation for companies to make their annual report public.

The aim of this paper is to describe, analyze and compare the development of conditions for the activities of foundations and endowment funds in the Czech Republic in the area of legislation and accounting in years 1989 to 2014. The analysis is focused on:
* the development of the legal regulations of foundations and endowment funds after 1989, after the effect of a separate law on foundations and endowment funds up to the present, which is related to the adoption of the new Civil Code,
* changing conditions for accounting, financial statements, the content and the publication of annual reports and their verification by the auditor.
The integral part of this paper is to draw attention to the negative aspects of the changes, suggest possible measures to address the drawbacks and facilitate the decision-making process of potential founders whether or not to establish a foundation or endowment fund while respecting legal and accounting perspective.

This paper is focused on the detection of the information potential of the financial statements of non-profit organizations of two selected states. The accounting law limits the content and format of the financial reports forming the complex of the financial statements. Non-profit organizations shall use the system of double-entry accounting or single-entry accounting. Depending on the chosen system of accounting they prepare financial statements in the prescribed structure. In single-entry accounting the financial statement consists of cash receipts and cash payments and the statement of assets and liabilities. In double-entry accounting the financial statement consists the balance sheet, profit and loss statement and notes to financial statements. Collection of information contained in the financial statements shows the status and changes in property, economy of non-profit organization and responds to changes of regulations aristing from membership in the European Union. By performing a literature search using the methods of deduction and comparison were detected identical, analogous, discordant and absentee informations.

Diffusion of Environmental Sciences into economic fields is the result of escalating society pressure for environmental protection. Accounting from position of the primary information system is facing the challenge of how to implement the requirements of management for accounting information with embedded environmental elements. This article aims to highlight the formation of variants of environmental accounting. Financial accounting system has traditionally focused on the status of fixed assets and other assets, obligations and other liabilities, costs and revenues and profit for the company as a whole. The current system of mandatory maintained financial accounting obligation does not determine following environmentally oriented information in the financial statements. International standards and best practices for creating environmental accounting can be used, or company may create own specific concept. The subsystem of environmental accounting designed by specific requirements is becoming acceptable and adjustable part of company information database.

The accounting reform of public finance in the Czech Republic was an issue intensively discussed in political and academic spheres at the turn of the century. As a consequence of this discussion the Ministry of Finance initiated works on the implementation process of new principles which the reform includes. The main purpose of the reform is the convergence of accounting principles of public and private sector and the creation of consolidated final accounts of the whole Czech Republic. The consolidation should contribute to the comparability of the accounts of Czech Republic and other countries within the European Union. The research is focusing on the evaluation of the reform by the selected accounting entities, municipalities to be specific. The findings of the research are discussed with the outlines of the solutions.

The article aims to describe the process of gradual convergence of Czech accounting standards with International Financial Reporting Standards. One of the last steps was the introduction of residual value and component depreciation method in the field of accounting and reporting of long-term assets. The aim of the harmonization processes is to ensure comparability of financial statements on an international scale and clarity for users of financial information. Uniform rules for financial reporting lead to the credibility of financial statements to investors and ultimately affect the competitiveness of firms.

Companies still have to fight for their market position. Positive attitude to environment can be a vital competitive advantage. But each benefit needs some investment. Environmental costs play a vital role in the companies today. The company does not usually know about these costs from a financial accounting. Therefore companies implement environmental managerial accounting, which enables managers to make all key decisions. The companies use a different methods to keep all the costs under control. One of them is standard cost method. The aim of this paper is to capture environmental costs in Alfa company, which operates in the food industry and in the practical part explain and point out to the benefits of using standard cost method.

Financial statements are a necessary base of measurement of financial position and performance of a company, and the clearly proved fact is that the view on financial position and performance is influenced by applied accounting and reporting methods. Objective of the submitted paper is to quantify differences in financial position and performance of companies at application of IFRS. The authors are also aimed at the synthesis of accounting differences between IFRS and the Czech accounting law. In order to fulfil objective of the paper the authors based their work especially on the primary research. They have used the statistic sample of companies where they transformer financial statements of these companies in accordance with the IFRS. Then, the methods of financial analysis have been applied in order to quantify the differences in the financial position and performance at application of the IFRS.

The purpose of this paper is to examine the impact of ownership concentration and other firm specific factors on company financial performance of 102 listed companies at Colombo Stock Exchange (CSE) over a two-year period from 2008 to 2009. The data are gathered through annual reports of respective companies. Both pooled and ordinary least square (OLS) regressions are used to analyze the data. Using ROA as the dependent variable, it is revealed that ownership concentration does not have a significant positive relationship with ROA. However, firm size, quick ratio and inventory having positive impact on ROA. But the debt ratio negatively relate with financial performance. The overall explanatory power of the model is below average and further research is necessary to increase the statistical power of the model.

The article deals on unemployment in the context of social, tax and evacuating. Unemployment is a global economic, social and psychological problem, whose growth is closely linked with the economic crisis. Approach to solving unemployment is different between countries. In the Czech Republic, moreover, due to the relative generosity of the welfare system pushes the unwillingness of some of the unemployed to work. Aim of this article is to design economic incentives to motivate the unemployed to employment or operation of self-employment, such as cutting and editing insurance and social change in the tax on personal income by introducing a tax bonus for the taxpayer.

This paper is focused on cost management in terms of service units with dominating overheads. It contents aspects of both classical budgeting and cost analysis methods and cost management based on Activity- Based Costing methods. Its aim is to give a practical instruction how to manage overheads in service units.

Article extends the discussion to the problem of adjustments to loan receivables of banks. In recent years the discussion focuses on the objectivity of the bookkeeping of there and on the negative macroeconomic effects of the currently used model.
One of the works objectives of the International Accounting Standards Board (IASB) in 2012 is to decide on the model of bookkeeping of adjustments. The subjects of the solution are three models, that allow to keep accounts of the reduce value of financial instruments - on incurred loss model, a model of expected losses and a model of dynamic provisioning. The aim of the paper is on the based of the description of the essential attributes of the model of dynamic provisioning analyzed impacts of the introducing of the model of dynamic provisioning on the profitability of banks and on the required amount of bank capital and recommend starting point for solving issues in the case of the introduction of this model.

The focus of this article is to present an analysis of the importance of accounting information for the financial management of enterprises in the Czech Republic. This article presents the results of research in 2007 and 2009. The aim of this paper is to discuss the importance of the comparability of accounting information for companies and their performance and competitiveness. The basis of successful financial management is the use of financial analysis, planning, controlling and reporting. All management methods are based on quality input data from financial and management accounting. Accounting is subject to constant changes and development not only in Europe but worldwide as well. Hence the importance of International Financial Reporting Standards (IFRS) will be further increasing in the Czech accounting environment.

The primary objective of non-profit organizations is impletion of the envoi which isn't make direct earnings, but provides benefit in modification of public utility services. Typology of non-profit sector presents specific position of the organizations in the national economy. Organizations are considered as business units and taxpayers. The exceptions should emphasize the non-profit vision in context of the market environment. The identification of the main specifics is necessary for orientation in the massive legislation.

The objective of this paper is to give information about the legal regulations for bookkeeping of some selected accounting entities in 2010 and 2011 and also to warn of some problems with the practical application of accounting methods in connection with review of the economy of municipalities and with the audit of financial statements of some selected accounting entities in context of the accounting reform of the public finance in the Czech Republic.

This article is engaged in a comparative analysis of the existing IASB's framework with the proposal of a new improved version, which is elaborated within the common convergence project of the International Financial Reporting Standards (IASB) and the United States Financial Accounting Standards Board (FASB). After that some inferential conclusions for accounting in the Czech Republic are analysed.

This article is about creative accounting in join stock company, it shows advantages and disadvantages and it also describes reasons why the share holders deform financial statements. On the simple example it will shown the impact of creative accounting and its declarations. Under the term "creative accounting" is hidden preventing accounting and auditorial reports about the real state of company and consequently providing if incorrect information. The goal of this article is to show how the practising creative accounting can influence the declaration of operating results in the company.