Template-Type: ReDIF-Article 1.0
Author-Name: Petr Marek
Title: New Year Means New Challenge
Abstract: Dear readers, New Year means New Challenge. At the beginning of every year it is obvious common to make New Year’s resolutions. The task for this year might have become to overcome financial crisis. Ambitious objective claims great acts. Economic theorists including experts, who did not expected any arrival of financial crisis to the last minute, offer large scale of proposals. Solutions are various and very often contradictory. On the one hand there are state subsidies and more extensive regulation, and on the other hand there are cancellation of whatever regulation and adjudication of superior power for the invisible hand of the market. As it would be the rule in economics, an extreme solution is obviously not the optimal solution. State subsidies for example in the form of scrappage program can lead to continuation in death agony of certain industry. Instead of Economic Cleanup from bad firms producing needless products and providing purposeless services, these firms will be henceforth represent an emergency for further development. However, free market is not long ago really free market, because the process of monopolization and globalization henceforth continues. And invisible hand of the market is often the invisible hand of various groups of stakeholders. Therefore we can not give up the regulation at any time. However politicians have a need of success especially in electoral terms, and therefore they must accept such measures which would lead to immediate solution. We have to beware of Potemkin village sui generis. Otherwise - after short time of peace and placidity - new and deeply crisis can appear.
Pages: 4
Volume: 2009
Issue: 1
Year: 2009
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=59.pdf
File-URL: http://www.vse.cz/efaj/59
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2009:y:2009:i:1:id:59:p:4

Template-Type: ReDIF-Article 1.0
Author-Name: Marcela Žárová
Author-Name: Ladislav MEJZLÍK
Title: Have IFRS Positive Impact on the Regulatory Accounting Systems in Continental European Countries?
Abstract: This article investigates statement that IFRS have positive impact on the regulatory system in continental European countries. The accounting regulatory system is used for the purpose of investigation. Authors of the paper developed theoretical scenarios of potential development of the accounting system in the Czech Republic. Rigid architecture of the accounting system, rigid set of accounting rules with no tradition of accounting profession, were considered in the development of potential accounting systems in the Czech Republic. Steps of IFRS implementation are monitored and partial implementation of IFRS into Czech accounting standards are under the criticism of the authors. There is a definite endeavour of the Ministry of Finance to implement some of the best practise of accounting professionals, worldwide respected, into the Czech accounting standards. This endeavour brings sometime very complicated situations and causes breakdown of the accounting system. The paper emphasizes on the most urgent issues. The study provides clear evidence under which conditions, in the system with continental European law, could the national accounting standards be developed through a formal system of due process. It can therefore be assumed that the impact of IFRS on accounting regulatory system in other continental European countries is similar.
Keywords: IFRS, Regulatory systems, Due process
Classification-JEL: M41
Pages: 5-24
Volume: 2009
Issue: 1
Year: 2009
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=60.pdf
File-URL: http://www.vse.cz/efaj/60
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2009:y:2009:i:1:id:60:p:5-24
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/60

Template-Type: ReDIF-Article 1.0
Author-Name: Jana FIBÍROVÁ
Author-Name: Libuše Šoljaková
Title: Role of Budgeting in Modern Corporate Governance (Empirical Study in the Czech Republic)
Abstract: The differing opinions of both experts and managers on the application of budgets in the dynamic changing business environment were inspiration for the empirical study that is oriented on the importance of budgets to performance management. The paper results from the empirical research. Analyses and conclusions presented in this paper cover the following issue: The first part analyses changes in the application of budgets in recent years and the indicators of these changes. The second part is oriented on the opinions of managers of budgets and explores whether managers consider budgets an important management tool supporting and improving Corporate Governance. Analyses concentrate also on differences between the attitudes of financial and nonfinancial managers and between middle level and top managers. The last part of the project focuses on recognition of factors that have an influence on budget consideration such as methods of budget preparation, manager participation in budgeting process, level of power and responsibility managers, relation to incentive scheme, and the personal characteristics of managers.
Keywords: Budgeting, Corporate Governance, Management Tools
Classification-JEL: M41
Pages: 25-36
Volume: 2009
Issue: 1
Year: 2009
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=61.pdf
File-URL: http://www.vse.cz/efaj/61
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2009:y:2009:i:1:id:61:p:25-36
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/61

Template-Type: ReDIF-Article 1.0
Author-Name: David Procházka
Title: The Hicks’ Concept of Income and Its Relevancy for Accounting Purposes
Abstract: The paper analyses the possibility of using the economic concept of income introduced by J. R. Hicks for accounting purposes. Despite some disadvantages hindering from its broader practical utilization, this concept still finds its place in the area of managerial accounting and capital maintenance. Some aspects of Hicks’ income concepts can be even found in International Financial Reporting Standards.
Keywords: J. R. Hicks, Ex-ante income, Ex-post income, Subjective value, Subjective goodwill, Subjective profit
Classification-JEL: M41
Pages: 37-60
Volume: 2009
Issue: 1
Year: 2009
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=62.pdf
File-URL: http://www.vse.cz/efaj/62
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2009:y:2009:i:1:id:62:p:37-60
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/62

Template-Type: ReDIF-Article 1.0
Author-Name: Jiří Witzany
Title: Unexpected Recovery Risk and LGD Discount Rate Determination
Abstract: The Basle II parameter called Loss Given Default (LGD) aims to estimate the expected losses on not yet defaulted accounts in the case of default. Banks firstly need to collect historical recovery data, discount the recovery income and cost cash flow to the time of default, and calculate historical recovery rates and LGDs. One of the puzzling tasks is to determine an appropriate discount rate which is very vaguely characterized by the regulation. This paper proposes a market consistent methodology for the LGD discount rate determination based on estimation of the systematic, i.e. undiversifiable, recovery risk and a cost of the risk.
Keywords: Credit risk, Recovery rate, Loss given default, Regulatory capital, Discount rate
Classification-JEL: C14, G21, G28
Pages: 61-84
Volume: 2009
Issue: 1
Year: 2009
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=63.pdf
File-URL: http://www.vse.cz/efaj/63
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2009:y:2009:i:1:id:63:p:61-84
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/63