Template-Type: ReDIF-Article 1.0 Author-Name: Marcela Žárová Title: Regulation of the European Accounting from the perspective of international harmonization Abstract: The article deals with the process of European accounting harmonisation. The process of European accounting harmonisation is divided into several historical phases including an overview of EC regulations on accounting. Description of the process of implementation of International Accounting Standards into the European law system, known as endorsement mechanism, is included too. The article deals with qualitative changes in European approach of accounting regulation. Keywords: harmonization, International accounting standards (IAS/IFRS), endorsement mechanism, EU Regulation, EU Directive, harmonizace, Mezinárodní účetní standardy (IAS/IFRS), schvalovací mechanismus, nařízení EU, směrnice EU Classification-JEL: M41 Pages: 12-21 Volume: 2004 Issue: 1 Year: 2004 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=239.pdf File-URL: http://www.vse.cz/aop/239 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2004:y:2004:i:1:id:239:p:12-21 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlaop/references/239 Template-Type: ReDIF-Article 1.0 Author-Name: Libuše Müllerová Title: The process of making U.S. GAAP (as inspiration for the creation of Czech accounting standards) Abstract: Financial accounting has been playing an important role in the economic system in the USA, since it has been supporting an effective operation of capital market, and consequently of whole economy. Its main task is to provide reliable accounting information about accounting entity to its users who do not take direct part in its management. Reliability of information is secured by generally accepted accounting principles (GAAP). Their publication is carried out by Financial Accounting Standards Board (FASB). In the course of preparation of accounting standards each user is allowed to protect its interests. However, the FASB members enjoy „last word“ in the whole process of decision-making. Following this process an important role is played by Securities and Exchange Commission (SEC), with which FASB is closely co-operating. Whole process of approval of each standard is shaped by systemic approach: firstly, problems are identified, next, proposals of various alternatives of accounting solutions are presented, assessed and lastly, final solution is chosen. Following FASB rules any standard may be issued if it is approved by two thirds of Board members. 147 standards have been passed until the year 2002. Further development may follow a path of approachment of US GAAP with International Financial Reporting Standards (IFRS) and a unified globally accepted set of accounting standards may emerge. Such advisement is responding to globalisation of capital markets and maintaining high level of investors protection. Keywords: Financial Accounting Standards Board (FASB), Securities and Exchange Commission (SEC), Generally Accepted Accounting Principles (US GAAP), Rada pro vydávání standardů finančního účetnictví (FASB), Obecně uznávané účetní zásady (US GAAP), Komise pro cenné papíry a burzu (SEC) Classification-JEL: M41 Pages: 22-41 Volume: 2004 Issue: 1 Year: 2004 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=240.pdf File-URL: http://www.vse.cz/aop/240 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2004:y:2004:i:1:id:240:p:22-41 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlaop/references/240 Template-Type: ReDIF-Article 1.0 Author-Name: Robert Mládek Author-Name: Lenka Krupová Title: Theoretical basis for the creation of normative texts in the USA in contrast to the theoretical basis of IAS / IFRS - a conceptual framework Abstract: A comparison of the conceptual frameworks underlying International Financial Reporting Standards (IFRS / IAS) and American Generally Accepted Accounting Principles (US GAAP) reveals a striking theoretical similarity between the two. Unfortunately, this similarity is masked by an even more striking difference in their form and presentation. For example, US GAAP defines 10 accounting elements and, apart from three (assets, liabilities and equity), none are directly comparable to the five defined by IFRS. It is not that the other seven do not exist under IFRS. It is just that IFRS chooses to express them differently by, for example, combining some (such as revenue and gains, which comprise income) and omitting others (such as contributions to owners and distribution to owners, whose explicit definition is not particularly useful anyway). Pointing to such differences as evidence of a fundamental, conceptual rift would, however, be a serious error in judgment. These differences are neither fundamental nor conceptual. They are, at most, attributable to the same cultural and linguistic dissimilarities that make American literature and cinematography so unlike the European. Thus, given both the cause and the effect of these differences, it would be both naïve and unrealistic to expect their elimination simply for the sake of some international convergence. Or, to put it differently, both the IASB and FASB have far meatier issues on their plates than to allow themselves get sidetracked by rearranging the garnish. Keywords: elements of financial statements, Conceptual Framework US GAAP, SFAC 1 - 7, Conceptual Framework IAS / IFRS, Koncepční rámec US GAAP, Vyhlášky SFAC 1 - 7, Koncepční rámec IAS / IFRS, prvky účetních výkazů Classification-JEL: M41 Pages: 42-58 Volume: 2004 Issue: 1 Year: 2004 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=241.pdf File-URL: http://www.vse.cz/aop/241 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2004:y:2004:i:1:id:241:p:42-58 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlaop/references/241 Template-Type: ReDIF-Article 1.0 Author-Name: Lenka Krupová Title: Analysis of the structure of the financial statement - Balance Sheet - U.S. GAAP and IAS (IFRS) Abstract: This article evaluates the similarities and differences between the balance sheet as defined by International Financial Reporting Standards (IFRS / IAS) and American Generally Accepted Accounting Principles (US GAAP). Both systems define the balance sheets elements in a very similar manner. Neither prescribes a single standard form. But in the practice we can see many similarities between balance sheets prepared according to the two. Since examining the overall structure of the balance sheet would not yield any meaningful information, this article focuses on examining individual line items. Such an 75 analysis is, however, complicated by the fact that there are certain systemic differences that make a line-by-line comparison problematic. Nevertheless, such a study was performed by Ernst and Young and examined 32 companies converting their financial reports from IAS to US GAAP. On the other hand, vast differences exist in the vary conceptual foundation on which a balance sheet created to these two international norms and one created according to Czech legislation (as well that of most continental European countries) exists, the January 1, 2005 transition to IFRS is thus presenting the Czech and European accounting professions with challenge of historic proportion, a challenge such scope and magnitude that it has no modern day precedent. Keywords: balance sheet, assets, liabilities, equity, International Accounting Standards, US GAAP, rozvaha, aktiva, závazky, vlastní kapitál, Mezinárodní účetní standardy, US GAAP Classification-JEL: M41 Pages: 59-76 Volume: 2004 Issue: 1 Year: 2004 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=245.pdf File-URL: http://www.vse.cz/aop/245 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2004:y:2004:i:1:id:245:p:59-76 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlaop/references/245 Template-Type: ReDIF-Article 1.0 Author-Name: Dana Kovanicová Title: The analysis of the elements constituting the operating, financial and other components result of economic activity for the period under U.S. GAAP and IAS / IFRS Abstract: The ordering a categorization of data in the income statement is unavoidable. Even in the absence of clearly identified subtotals, there is some form of implicit structure in any income statement. An immediate difficulty, however, is that attempts to define income statement categories can be viewed in one of two ways. First, they can be viewed as attempts to make distinctions that provide useful information - for example, by separating items that are not expected to recur, so that analysts and other users can focus on the entity ongoing business. Second, they can be categorized according to operating, financing and extraordinary activities. In thinking about possible income statement categories, a practical matter is that certain categorizations must take primacy over others. There is the possibility of introducing a second dimension to the statement of comprehensive income, which would then allow a second primary categorization to be made. This is approach favored by IASB: specifically, the two primary categorizations in the IASB proposed format are, first, operating and financing and, second, "income components" and "valuations adjustment". It gives possibility to display and present comprehensive income - i. e. all income and expenses, or all recognized changes in assets and liabilities except those related to transactions with owners as owners. Keywords: income statement, revenues, expenses, gains, losses, comprehensive income, výsledovka, výnos, náklad, přírůstek hodnoty, úbytek hodnoty, úplný výsledek Classification-JEL: M41 Pages: 77-106 Volume: 2004 Issue: 1 Year: 2004 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=248.pdf File-URL: http://www.vse.cz/aop/248 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2004:y:2004:i:1:id:248:p:77-106 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlaop/references/248 Template-Type: ReDIF-Article 1.0 Author-Name: Miloslav Janhuba Title: Revenue - similarities and differences of normative texts Abstract: This exposition focused to some basic problems by definition of the microeconomic (and accounting) category "revenue", of its congruence and differences in canonic texts (law act, instruction, directive etc.), which regulate a complex of accounting performances, in the first place, income statements. As canonic texts was make use of directives EU, International Accounting Standards, Financial Accounting Standards in USA and Czech law. Theoretically compared are the functions of revenue (and its precise definition) by isolating of multifarious types of income: operating profit, realizable cost saving, realized cost saving and realized capital gains. The process of revenue recognition in some complicated situations is minutely described mainly in International Accounting Standard No. 18 120 - Appendix. Next highlighted is any logically uncompromising accounting category "revenue" necessity in Czech canonic texts for financial statements preparation and disclosure. Keywords: International Accounting Standards, US GAAP, income statement, revenues, EU directives, směrnice EU, Mezinárodní účetní standardy, US GAAP, výsledovka, výnosy Classification-JEL: M41 Pages: 107-121 Volume: 2004 Issue: 1 Year: 2004 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=251.pdf File-URL: http://www.vse.cz/aop/251 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2004:y:2004:i:1:id:251:p:107-121 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlaop/references/251 Template-Type: ReDIF-Article 1.0 Author-Name: Markéta Novotná Title: The criteria that can be applied to the breakdown of equity components constituting the estate of the company - intangible and tangible assets in accordance with U.S. GAAP and IAS / IFRS Abstract: The paper focuses on financial reporting of long-lived assets. The author's aim was to analyze the approach of two major accounting principles - IAS/IFRS and US GAAP. Both of the principles address following issues: * initial recognition and measurement, * depreciation: allocation of capitalized costs over the useful life of the asset, * disposal of the asset. Broadly accepted classification of the long-lived assets divides the whole group into two parts: tangibles and intangibles. General definitions and recognition criteria are covered by the framework. Particular standards dial then with special matters. Although both international approaches have a lot in common, several differences emerge: * US GAAP do not allow to capitalize internally developed intangibles,however developed intangibles can be capitalized under special conditions according to IAS/IFRS; * impairment: IAS/IFRS allow to cancel or adjust the impairment towards the original value of the asset, US GAAP - once impairment is recognized, it is not permitted to cancel it and to return back to the original value of the asset; * IS /IFRS use historical costs based treatment and allowed alternative treatment - revaluation, US GAAP don't use allowed alternative treatment of the assets - revaluation is not permitted; 138 * IAS/IFRS set the useful life of the intangibles up to 20 years, US GAAP don't restrict the useful life at all. In the process of convergence of IAS/FRS and USGAAPquestions have arisen which of the approaches should be taken as a crucial one for world accounting principles. Standard-setters prepare studies to support their current approach. Unified solution has not been found yet. Keywords: long-term assets, tangible assets, intangible assets, valuation, useful life, depreciation, depletion, amortization, future economic benefit, impairment, dlouhodobý majetek, hmotná aktiva, nehmotná aktiva, ocenění, doba životnosti, odpisování, snížení hodnoty, budoucí ekonomický prospěch Classification-JEL: M41 Pages: 122-139 Volume: 2004 Issue: 1 Year: 2004 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=252.pdf File-URL: http://www.vse.cz/aop/252 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2004:y:2004:i:1:id:252:p:122-139 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlaop/references/252 Template-Type: ReDIF-Article 1.0 Author-Name: Bohumil Král Title: International Education Standards for Professional Accountants adopted Abstract: The paper describes the IFAC Education Committee effort to develop new International Education Standards for Professional Accountants. It informs about the structure and content of International Education Standards and it defines the principle standard requirements. The end of the paper is devoted to the questions of the standards impact on the pre-qualification education system in both of our professional bodies - in the Chamber of Auditors of the Czech Republic and in the Union of Accountants. It generally characterizes level of both of systems to be comparable with the Standards requirements; in the same time, however, it prefers the way of the common body of knowledge development, that would harmonize the education requirements of professional accountants and auditors and optimize the start-up and operational costs of the education system. Keywords: International Education Standards, IFAC Education Committee, pre-qualification education, continuous professional development, Mezinárodní vzdělávací standardy, Vzdělávací výbor IFAC, vzdělávání před vstupem do profese, kontinuální profesní rozvoj Classification-JEL: M41 Pages: 140-150 Volume: 2004 Issue: 1 Year: 2004 File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=253.pdf File-URL: http://www.vse.cz/aop/253 File-Format: text/html Handle: RePEc:prg:jnlaop:v:2004:y:2004:i:1:id:253:p:140-150 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlaop/references/253