Template-Type: ReDIF-Article 1.0
Author-Name: Petr Marek
Title: Short Thought about One Calendar
Abstract: Dear readers, I would like to devote the preface to this year’s first issue of the European Financial and Accounting Journal to a short thought about one wall calendar. The American Economic Association sent its members a calendar covering the period from January 2010 until June 2011 on the occasion of the 125th anniversary of its founding. Each of these eighteen months is dedicated to the one famous name of economic science. There is a picture of Adam Smith, who teaches his Theory of Moral Sentiments (recognized by the text on the blackboard) and the seventeen students carefully listening to his lecture, on the first page. John Stuart Mill, George Stigler, Karl Marx and John Maynard Keynes sit in first row, Irving Fisher, Joseph Alois Schumpeter, Friedrich von Hayek, David Ricardo, Leon Walras and Thomas Robert Malthus are in the next row, Francis Edgeworth, Thorstein Veblen, Marshall, John von Neumann and Richard Theodore Ely occupied the rear seats and then Joan Robinson and Milton Friedman sit a little away. The position of Adam Smith (5th June, 1723 - 17th July, 1790), the Scottish native, in the role of the teacher seems to be indisputable. He sets the fundamentals of modern economic science in his major works; The Theory of Moral Sentiments, and An Inquiry into the Nature and Causes of the Wealth of Nations, from which researchers in the whole world benefit from it even nowadays. His followers developed his theory in a number of often very different fields. For most days in the year there are names of representatives of economic science, who were born or baptized on this day. The representative sample is made of a total of 392 economists living in different times, from different countries and often engaged in various scientific topics. In this manner there are names well known, less known and some rather forgotten. However, you can find some surprises. In the case of Vladimir Ilyich Lenin, I only vaguely remember from my earlier studies, that in his collected writings there are some signs of scientific work, but his inclusion among reputable scientists do not fit me much. But the biggest surprise seems to be Rosa Luxembourg, who was for me by the former communist regime profaned representative. Only this calendar forced me to look into her biography, and there can also be found her book about the Accumulation of Capital written in spirit of Marxist economics. The largest number of names appears in the month of July (44), on the contrary the lowest number appears in September (28). In terms of individual days the 26th July wins, in this day the famous five economic scientists were born. However, it seems that a good day for the birth of a new future genius is also 5th June, when both Adam Smith and John Maynard Keynes could celebrate birthday (or the day of baptism). Representation of women in science is unfortunately rather symbolic. Only eleven of them can be found in the list. They are Glicman Irma Adelman, Susan Carleton Atlee, Mary Joan Bowman, Katharine Coman, Anne Osborn Krueger, Margaret Gilpin Reid, Alice Mitchell Rivlin, Anna Jacobson Schwartz, and Martha Beatrice Webb in addition to Joan Robinson and Rosa Luxembourg. Eight economic scientists were born in the seventeenth century, 31 in the eighteenth century, 148 in the nineteenth century and 205 in the twentieth century. The oldest representative is English economist William Petty (27th May, 1623 - 16th December, 1687), the author of the labor theory of value, while the younger generation is represented by the French scholar Emmanuel Saez (26th November, 1972) dealing with optimal taxation. The calendar of the American Economic Association recalls the names of those who have contributed to the development of economic science, those persons, without whose research, ideas, analysis, models, but also mistakes, would our world look a little different. Maybe the world would be better without some of them, it certainly cannot be excluded, but in that case we would now probably face the same problems that our ancestors have already solved.
Pages: 4-5
Volume: 2010
Issue: 1
Year: 2010
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=41.pdf
File-URL: http://www.vse.cz/efaj/41
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Handle: RePEc:prg:jnlefa:v:2010:y:2010:i:1:id:41:p:4-5

Template-Type: ReDIF-Article 1.0
Author-Name: Marcela Žárová
Title: Impact of IAS 12 on Deferred Taxes Regulation in the Czech Republic.
Abstract: This article investigates the impact of IAS 12 on deferred taxes regulation in the Czech Republic, where local accounting regulations includes accounting standards only by names, but not as an output of regular due process and which are not issued by the professional accounting body at all, not even partially. The article deals with the development and description of the Czech accounting system from early nineties of last century till present time as a background for IFRS implementation. Then the article followed subsequent steps of IAS 12 implementation into the hierarchy of legal rules for accounting, starting with the Act on accounting, decree on business entities and Czech accounting standard for deferred taxes. IAS 12 implementation into Czech accounting system is an example of partial and incomplete implementation of IFRS into domestic accounting rules based on different law presumption than under which are IFRS developed. Example of IAS 12 implementation into Czech accounting regulatory system, provide the reader clear demonstration of wrong philosophy how to reach comparable accounting information. Based on the published criticism, the recommendation is not to continue in partial IFRS implementation but make good rule for entities to allow them to choose either full IFRS or domestic rules applicable in compliance with the approach “think small first”.
Keywords: IAS 12, Deferred tax, IFRS implementation
Classification-JEL: M41
Pages: 6-27
Volume: 2010
Issue: 1
Year: 2010
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=42.pdf
File-URL: http://www.vse.cz/efaj/42
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Handle: RePEc:prg:jnlefa:v:2010:y:2010:i:1:id:42:p:6-27
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Template-Type: ReDIF-Article 1.0
Author-Name: Tomáš Buus
Author-Name: Jaroslav BRADA
Title: VAT and Tax Credits: A Way to Eliminate Tax-Evasive Use of Transfer Prices?
Abstract: In this paper we compare income taxes to VAT and tax credits to tax deductions in terms of their ability to distort factor prices, provide fair taxation, avoid tax-evasive transfer pricing and induce Pareto improvement of tax policies. On the base of theoretical discussion and thought experiments we conclude that VAT is due to its nature superior regarding these requirements. We also have found out that a wider use of tax credits within VAT would be useable to prevent profit shifting. Some adjustments of VAT compared to current practice are needed to achieve the best results. More rigorous proofs, both theoretical and empirical are needed.
Keywords: Tax credits, VAT, Transfer prices, Multinational enterprises, Pareto optimum
Classification-JEL: D21, D29, G39
Pages: 28-50
Volume: 2010
Issue: 1
Year: 2010
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=43.pdf
File-URL: http://www.vse.cz/efaj/43
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Handle: RePEc:prg:jnlefa:v:2010:y:2010:i:1:id:43:p:28-50
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Template-Type: ReDIF-Article 1.0
Author-Name: Stanislav KLAZAR
Title: Behavioral Consequences of Optimal Tax Structure - Empirical Analysis
Abstract: The aim of the paper was to analyze some behavioral effects, especially the effect of “hidden” tax, the “preference of progressivity” effect and some kind of “preference of short period incidence” effects of citizen. The effects predict the citizens will prefer hidden taxes to direct levies. The behavioral experiments revealed that additional information concerning the “hidden” tax and tax progressivity influences the preferences of respondents. They started to prefer the different ways of financing the public goods, those more progressive. Effect of “hidden” tax substantially diminishes after the prompting of information concerning the true tax incidence of corporate income tax. At the beginning the corporate income tax was preferred all over the groups, but later it lost its dominance and the alternative personal income tax became the favorable way how to finance of public goods. It is evident the relevant information concerning the real tax incidence and the redistributional effects of particular tax measures can significantly change the citizens view how to construct the preferred tax mix. It might also affect the process of political negotiation and reasoning.
Keywords: Hidden tax, Progressivity of tax, Tax credit, Tax deduction, Behavioral experiments, Experimental economics
Classification-JEL: C91, H21, H22, H23
Pages: 51-63
Volume: 2010
Issue: 1
Year: 2010
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=44.pdf
File-URL: http://www.vse.cz/efaj/44
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Template-Type: ReDIF-Article 1.0
Author-Name: Jana IŠTVÁNFYOVÁ
Author-Name: Ladislav MEJZLÍK
Author-Name: Jiří PELÁK
Title: Progression of Financial Reporting in Czech Republic and its Regulation
Abstract: The development of a national accounting framework presents unique issues. A strong accounting system needs sufficient time to evolve. The influence of IFRS and of existing tax objectives of Czech accounting system increase the complexity and costs of implementing and monitoring the accounting rules. Given the short time between abandoning an economy based on public ownership and joining the European Union, Czech Republic made significant progress in development of its accounting regulation. The article addresses implementation of IFRS in the Czech Republic and describes the structure of accounting and auditing regulation which can be divided into four levels according to the reporting requirements set by the legislation. Major unsolved issues in the Czech national accounting system remain, including incomparability of Czech Accounting Standards and IFRS.
Keywords: International Financial Reporting Standards (IFRS), Development of Czech Accounting, Joining the European Union, Underdevelopment of accounting, Implementation of IFRS into Czech Accounting Regulation
Classification-JEL: M40
Pages: 64-77
Volume: 2010
Issue: 1
Year: 2010
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=45.pdf
File-URL: http://www.vse.cz/efaj/45
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Handle: RePEc:prg:jnlefa:v:2010:y:2010:i:1:id:45:p:64-77
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