Template-Type: ReDIF-Article 1.0
Author-Name: Bohumil Král
Title: Twenty Years of Financial and Bank Reforms in the Czech Republic - Bird View
Abstract: Dear readers, who was afraid that conference “Twenty years of financial and bank reforms in the Czech Republic” which was organized on November 11, 2009 by Faculty of Finance and Accounting of the University of Economics, Prague in collaboration with Czech National Bank, will be mainly nostalgic and memory optimism hindsight to years of transformation, was pleasantly surprised. Of course, it does not mean the data and events of important transformation steps have not been mentioned. They have been, however, used by most of presenters to topical and sometimes also critical considerations about topics highly substantial for the future. I believe that content of the conference, which was by its spirit (and certainly in favour its quality) more work than celebration oriented, will be the subject of professional analyses of bank and financial experts; there is a lot of areas worth to do it. As I do not feel to be specialist to those problems, let me come to think of conference benefits in more general circumstances; they can be interesting for all of us who shares over activities connected with solution of our faculty research project “Financial and accounting theory development and its application from the interdisciplinary view-point”. The fact we live professional part of our life in quite exceptional time and territory has been - in my view - principle general conference motto. No only time connections which enable us to analyse individual attributes of transformation from pre-November initials to developed democratic society but also comparison with countries experiencing analogical development and with those which serves as standard for us in concrete parameters create huge potential for our objective, neutral research. It has been sympathetic in this regard that most of experts who has been influenced progress of the last twenty years (including Mr. President) were very frank in their presentations and correct in the sense of “we have been to act differently in some decisions”, “we have undervalued incidence of this factor” or „we have been mistaken as we have come from a pre-condition which have not been confirmed”. Recent reflection of the globe in the image how is created by politics and presented in a simplified way by medias create an impression that it is not acceptable to admit a mistake. This rule cannot be accepted for scientific investigations and it is good message that it has not been applied by the conference speakers. Objectivity and neutrality of our research activities is also connected with non-written custom “not to mark” or “not to label” phenomena on the basis of their far historical or social connections. „Phenomena are not, or bad”, stated Vladimír Dlouhý in response to reservation his paper does not state quite definitely whether he support quick Euro implementation, or not, and he continued: “they (phenomena) are such they are” - and this is the reason why we must investigate them in mutual inter-relations of their strengths, weaknesses, opportunities and threats”. Consequently, although we must be transparent in our opinions and final statements regarding differentiation from an alternative opinion, it is not contradict to our statement if we disclose also its risks and limitations and it is not our loss to admit that an alternative opinion has its strengths. We have great advantage in our investigations - we are not tight with already realised decisions: we are not authorised - unlike executives - to argue together with Miroslav Kalousek “it is waste of time to discuss whether to accept Euro or not because we have already committed ourselves to accept it in admittance treaty“; on the other hand, it belongs to our rights and (sometimes not very pleasant) obligations to defend our opinion regardless the fact it is not “on the program”, conform or formally winning. One of very popular labels is given by disparagement of “practitioners” to conceptual considerations. There was no miracle in this regard that also during conference (rightful) note has sounded from Richard Salzman to Kamil Janáček opinion whether transformation of banks could be managed by a more efficient way. However, the way of the note introduction coming from consideration “this is the way how theorists but not practitioners think” has not been quite correct - regardless nobleness of its reciting. Nevertheless, reaction of professor Janáček was very convictive: it was quite apparent that the whole problem perceived in much more stronger integration of theory and practise than how it had derived allegedly from his timely limited presentation. No surprise: despite “accusation” he is not only expert with huge scientific potential but also personality with close relation to practise which he has always been taking as principle corrective of his general scientific outcomes. In my opinion, this non-important episode could be also an inspiration for us who formulates general conclusions in the frame of our scientific ambitions. In rational conditions any contradiction between theory and practise cannot exist; it is not sense of our research activities to construct models based on pre-conditions which will never come into existence. Our main target is - as well as in other areas of the human efforts - to find a „customer” - user whom we are able to enrich with regard his/her practical information needs. Consequently, it is inevitable for us and for our research project (regardless its orientation to “theory” in its title) to come from the practical needs primarily. Of course, it requires - besides others - to know practise and its problems. Just only in the case our conceptual outcome will bring benefit in the test of practical application it also fulfils its principle sense. Nevertheless, not only synergy of our theoretical and practical knowledge is sufficient for our scientific aims reaching. Although our scientific investigations do not necessarily meet moral and ethical aspects allegedly, there is no doubt that only such solutions win in strategic run which are not only practically beneficial and theoretically justifiable but also solutions which are correct from the moral and ethical viewpoints. Probably in Martin Mandel presentation has sounded this aspect by the strongest way. He has elaborated topic highly specific in his presentation - preconditions of exchange rate will retain a stabled element of our economy; nevertheless, in the survey of these preconditions he has also stressed more general values of all our activities including scientific ones: in his view, to principle pillars of the exchange policy has belonged (and it should also belong in the future) fixation of rules, long-term consistency, effort to fulfil declared aims, accompanied by continual process of corrections between prognoses and reality, transparency, understand ability and fair attitude in disclosure and analyses of results. There is no dispute that not only professional competence but also above stated principles has contributed substantially to the exchange rate of Czech crown development; it is perceived recently as non-disputable positive feature of our transformation. It is certainly accompanied by many questions and problems; there is no doubt, however, in main parameters it is oriented by correct direction. I am convinced these principles create guarantee for the success of our scientific activities as well - and not only of them.
Pages: 4-7
Volume: 2009
Issue: 4
Year: 2009
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=75.pdf
File-URL: http://www.vse.cz/efaj/75
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2009:y:2009:i:4:id:75:p:4-7

Template-Type: ReDIF-Article 1.0
Author-Name: Milena MARINOVA
Title: Can Capital Ratios be the Centre of Banking Regulation - A Case Study
Abstract: The application, or to be more precise, the misapplication of securitization in the mortgage market had fatal consequences for the financial sector worldwide. More over securitization techniques enabled single banks to reduce their individual risk while at the same time transferred greater risk to the financial system. Meanwhile a lot was written on the causes for the recent financial crisis. In most cases inadequate ratings provided by the credit rating agencies and different principal agency problems were addressed. I argue that international and national financial supervisors established an inadequate framework for financial regulation and supervision, and among other failures, even supported credit rating agencies to further establish their businesses. Further on, I argue that early warning indicators of systemic risk in the financial sector and signs of the coming turmoil were irresponsibly ignored at the time they were perceived. What turned obvious during and after the recent financial turmoil is that capital regulation failed to reach its main goal - ensuring stability of the financial system. In particular, securitization and related credit risk transfer products were adequately treated neither in Basel I nor in Basel II. With the development of both Basel Accords capital ratios became the center of banking regulation. However, capital ratios are obviously not sufficient as a measure for a systemic financial stability. It is time to ask if the developments in Basel II are the right way of banking regulation and supervision and in particular, if capital ratios can be the centre of banking regulation?
Keywords: Financial crisis, Mortgage securitization, Banking regulation, Capital adequacy
Classification-JEL: G2, G21, G24, G28
Pages: 8-34
Volume: 2009
Issue: 4
Year: 2009
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=76.pdf
File-URL: http://www.vse.cz/efaj/76
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Template-Type: ReDIF-Article 1.0
Author-Name: Boris POPESKO
Title: How to Implement an Accurate and Effective Costing System in Manufacturing Organizations
Abstract: The objective of the article is to define rules for establishing a high quality costing system to measure the costs of products, customers, and other cost objects in a manufacturing enterprise. The pros and cons of all existing costing methods are discussed in the article, as are the methods themselves. Furthermore, their allocation principles are investigated, along with the nature of costs and the behavior of cost elements in major enterprises. One expectation is that different principles of cost allocation will have to be applied to different types of costs, based on their relation to the output of a company’s processes. Initially, several analyses are performed in order to identify the methods that prove insufficient for effective and accurate cost allocation. These methods, despite their inaccuracies, are very frequently used in practice. Also, cost elements or cost pools inside an organization, which tend to be hard to allocate accurately, are identified. Secondly, several implementation projects on the activity-based costing system, have been analyzed in order to consider the effectiveness of utilizing such a system in a manufacturing enterprise. Furthermore, the general rules for allocating cost pools or activity costs are outlined. Thirdly, different principles for cost allocation are defined for individual cost elements. The result of the article is to define the rules for implementing a costing system which provides accurate and correct information. These rules should provide for a compromise between the use of a traditional absorption costing system and the activity-based costing system, by pointing out the most important allocation principles.
Keywords: Costing Methods, Cost Allocation, Activity-based Costing
Classification-JEL: M1, M41
Pages: 35-49
Volume: 2009
Issue: 4
Year: 2009
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=77.pdf
File-URL: http://www.vse.cz/efaj/77
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Handle: RePEc:prg:jnlefa:v:2009:y:2009:i:4:id:77:p:35-49
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Template-Type: ReDIF-Article 1.0
Author-Name: Anca Gabriela TURTUREANU
Author-Name: Cornelia Elena TUREAC
Title: International and European in the Accounting System of Romania
Abstract: In order to join the European Union, Romania, as well as the other member countries, must accomplish certain criteria, among which we can mention the adopting of the acquis communautaire. Thus, two Guidelines can be considered the basis of the acquis communautaire for the field of the accounting of the corporations: The Fourth Guideline of the Counsel (78/660/EEC) concerning the yearly accounts of the business corporations and the Seventh Guideline of the Counsel (83/349/EEC) concerning the consolidated accounts of the business corporations. Since these two guidelines does not cover the banking industry and the insurance industry, there were adopted two Guidelines in order to cover the problems that appear in the yearly accounts (financial situations) of these two sectors (The Accounts Guideline of the Banking Industry from 1986 and The Accounts Guideline of the of the Insurance Industry from 1991). These four Guidelines are considered to be the fundamental pillars of the acquis, with relevance.
Keywords: IFRS, Financial reporting, Romania, Romanian Accounting Practices
Classification-JEL: M41
Pages: 50-65
Volume: 2009
Issue: 4
Year: 2009
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=78.pdf
File-URL: http://www.vse.cz/efaj/78
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Handle: RePEc:prg:jnlefa:v:2009:y:2009:i:4:id:78:p:50-65
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Template-Type: ReDIF-Article 1.0
Author-Name: David TUČEK
Title: Theory and Practice of Business Process Management
Abstract: Traditional model of management is based on hierarchical decomposition of organizational structure. Company is divided on workroom, union, partitions and every formation of his has independent agenda and his responsibility. However the formations often have tendency create about themselves barrier, especially communications and informatics barrier. Compared to that, process management is relatively new view of organization that moves activities of many companies. Process organization tries organizing and managing the work like comprehensive complex, which is of further distributed on individual sub-processes, which are logically linked. It is known; that the BPM is exploited in many line productions, nonproductive and tertiary sphere and his conventions pays in the same way in all lines. This statement I can corroborate thanks to my research results (below). Within the overall context of this research, we have understood the aspects of BPM to mean: a view and standpoint on the problems and issues related to the management of enterprises` processes and this includes such areas as aims, factors, components, support as well as the benefits of BPM itself. As it was indicated in the title of this paper, we mainly concentrate here on presenting the main results of the last-mentioned research area, i.e. where we evaluate the benefits of PM from the managements of Czech enterprises` point-of-view. The results are shown as a summary of all of the companies (respondents), of which there were 132.
Keywords: Business Process Management, Process Modeling, Business Process Reengineering, ARIS (Architecture of Integrated Information Systems), ARIS Toolset, ARIS Business Architect, ERP (Enterprise Resource System)
Classification-JEL: O31
Pages: 66-83
Volume: 2009
Issue: 4
Year: 2009
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=79.pdf
File-URL: http://www.vse.cz/efaj/79
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2009:y:2009:i:4:id:79:p:66-83
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