Hana Bohušová

The application of an accounting standard for SMEs

Small and medium-sized companies have a very important position in the European Union (EU) economy, mainly in the area of employment. Their activities in the internal market are limited by a great deal of obstacles. The most important obstacles are the different national accounting and tax systems. At present, it is obvious that a certain degree of accounting and tax harmonisation has to take place. International Financial Reporting Standards (IFRS) for Small- and Medium-sized Enterprises (SMEs) is designed to apply to the general-purpose harmonised financial statements of all profit-oriented SMEs. General-purpose financial statements are directed toward the common information needs (an entitys financial position, performance, cash flow) of a wide range of users (shareholders, creditors, employees). Determining taxable income requires special-purpose financial statements designed to comply with the tax laws and regulations in a particular jurisdiction. An entitys taxable income is defined by the laws and regulations of the country or other jurisdictions in which it is domiciled. Tax authorities are also important external users of the financial statements of SMEs. Profit or loss recognised under IFRS for SMEs could be a starting point for determining taxable income.

Panelový regresní model: nástroj pro odhad obvyklé rentability tržeb pro účely převodních cen v kontextu malých a středních podniků

In this paper we focus on transfer pricing issues of SME with aim to propose a methodological tool in the form of panel-regression model estimating arm´s length EBIT margin of industry where SME is operating, which is based on the Action Plan of the European Commission to ensure fair and effective corporate taxation, fulfilling the premise of simplicity and non-increasing the administrative burden and compliance costs of taxation. As a result separate panel regression models were determined for each industry sectors and EU Member States based on the variables, such as operating revenues, payroll, added value and tangible fixed assets. Those regression factors are able to statistically significantly explain the variability in the generation of EBIT margin in case of SME in EU 28, which is often used for transfer pricing purposes. Panel regression models can be used as a simple methodological tool to estimate the arm´s length SME profitability in the industry sector and the state where is SME operating. Moreover, it is able to identify possible distortion of transfer prices if SME is not generating arm´s length EBIT margin based on the model.

The Uncertainty Associated with the Estimated Lease Term and its Impact on Financial Statements Items

Abstract The paper focuses on the possibility of reviewing the expected lease term after the initial recognition of the leased subject in the lessees financial statements. The determination of methodical process and assessment of the possible reassessment of lease term effect on balance sheet items and profit or loss is the main aim of the paper. The authors’ approach is based on the current stage of convergence of U.S. GAAP and IFRS in the area of leases reporting. The possible methodological procedures used in the ED are analyzed for the purpose of consideration and quantification of probability of the option to extend the lease term in case of affected financial statements items. Statistical methods are used for processing.