Template-Type: ReDIF-Article 1.0 Author-Name: František Obešlo Title: Export and Import Functions (Empirical Analysis on the Example of the Czech Republic) Abstract: This paper focuses on import and export of goods of the Czech Republic. The Czech Republic is very open country in European Union. Ratio of import and export of goods and services to GDP is above European Union average. The goal is to find explanatory variables, which have an influence on import and export of goods and to build robust and economically interpretable models. Models are created by cointegration analysis. The advantage of cointegration analysis and error correction models is avoiding spurious regression and differentiation of short-term and long-term relations. There will be used ARDL approach for building models. Keywords: Export of goods, Import of goods, Cointegration analysis Classification-JEL: C5, F14 Pages: 05-16 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=184.pdf File-URL: http://www.vse.cz/efaj/184 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:3:id:184:p:05-16 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/184 Template-Type: ReDIF-Article 1.0 Author-Name: Hulya Celebi Author-Name: Sabina Hodžić Title: The Impact of Corporate Income Tax on R&D of Multinational Entities: An Impact Analysis of Separate Taxation and CCCTB Abstract: The significant contribution of R&D to economic development and sustainability has been shown by various studies. Therefore, governments offer different fiscal instruments to attract R&D, especially regarding multinational entities (MNEs). One of the fiscal instruments are tax incentives for R&D. Furthermore, the EU has been working on the switch from Separate Taxation (ST) to Common Consolidated Corporate Tax Base (CCCTB) for longer than a decade, which will lead to harmonized R&D tax allowances, however without harmonizing the tax rates. Hence, this study aims at analyzing how ST and CCCTB impact the location of MNEs' R&D activities, tax burden and countries' tax revenue through a case study. The results show that, under ST, tax jurisdictions can stimulate MNEs’ R&D activities by means of attractive tax allowances and lower tax rates. Especially for high-tax countries, the tax allowances represent an important tool for attracting R&D activities. However, under CCCTB, the location of R&D activities additionally depends on the Formula Apportionment (FA) factors of the tax base, where the countries cannot exert a direct influence. Hence, the reduction of tax rates remains the only tool left to Member States, which can lead to revenue loss on the whole. Furthermore, the FA of the tax base under CCCTB mitigates the impact of any dislocation of R&D to a low-tax country, which, under ST, leads to larger tax savings of MNEs and its impact on jurisdictions’ tax revenue is greater. Keywords: Corporate income tax, CCCTB, Tax incentives for R&D, Separate taxation Classification-JEL: H20, H25, O23 Pages: 17-32 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=185.pdf File-URL: http://www.vse.cz/efaj/185 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:3:id:185:p:17-32 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/185 Template-Type: ReDIF-Article 1.0 Author-Name: Dirk Beerbaum Author-Name: Maciej Piechocki Author-Name: Christoph Weber Title: Is there a Conflict between Principles-based Standard Setting and Structured Electronic Reporting with XBRL? Abstract: National standard setters and external accounting observers continue to express concerns over a principles-based developed IFRS taxonomy. Considering the anticipated but unexpected SEC decision on March 3rd 2017 to adopt the IFRS taxonomy for electronic filings for Foreign Private Issuers by 2018 and the announcement of ESMA on December 22nd 2016 to base electronic filings in Europe on the IFRS taxonomy by 2020 signal that national regulators, external accounting observers and international regulators have a dissent. This paper reflects the expressed concerns by national standard setters. Applying a scientific ap-proach, a comprehensive literature review is performed. The research question is if the rules-based IFRS taxonomy implies a conceptual conflict with the principles-based IFRS. This paper concludes considering the academic literature although there is conceptual conflict between a principles-based accounting standard and the template-based taxonomy, from a normative perspective the IFRS taxonomy improves comparability and transparency supporting true and fair view. Our study also contributes to the principles-based vs. rule-based debate in the academic literature. The new aspect is the role of IT with structured electronic reporting, which requires detailed and specific requirements, for which rule-based accounting has advantages over principles-based accounting. Keywords: IFRS taxonomy, XBRL, Principles-based Classification-JEL: M42 Pages: 33-52 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=186.pdf File-URL: http://www.vse.cz/efaj/186 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:3:id:186:p:33-52 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/186 Template-Type: ReDIF-Article 1.0 Author-Name: Martin Červený Title: Fulfillment of IFRS 2 Disclosure Requirements by Companies Listed on the Prague Stock Exchange Abstract: The aim of this paper is to assess the quality of share-based payments’ disclosure in compliance with IFRS 2 by companies listed on the Prague Stock Exchange. The study shows how companies in the Czech market utilizing share-based payments meet the requirements given by IFRS 2 framework and in order to support the arguments, it compares the results with randomly selected companies from the German DAX index, which represents a well-developed market. The focus is on three key principles of disclosure, as defined by the IFRS 2. As we will demonstrate, Czech corporations do meet the regulatory minimum requirements, but they fail to utilize some of the advanced valuation methods and their reports are generally rather brief compared to their German counterparts. Keywords: IFRS 2, Share-Based Payments, Employee Stock Options Classification-JEL: M40 Pages: 53-64 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=187.pdf File-URL: http://www.vse.cz/efaj/187 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:3:id:187:p:53-64 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/187 Template-Type: ReDIF-Article 1.0 Author-Name: Tharatee Mookdee Author-Name: Sheila Bellamy Title: Asset Classification, Subsequent Measurement and Impairment Testing for Carbon Emission Trading Abstract: With global efforts to combat climate change, accountants from participating entities worldwide need to report the economic value of carbon credits and related assets in carbon markets. However, the absence of formal accounting guidelines allows the selection of accounting practices and reporting methods based on individual judgment. Also, emitters are allowed to invest in carbon credit projects and trading. These circumstances have led to diversity in global accounting practices. As accounting is an international business language in a global business world, it is important to study emerging accounting practices for carbon emission trading. The main aim of this study is, therefore, to explore the accounting practices (asset classification, subsequent measurement and impairment testing) of carbon credit providers/traders. Sample companies from Australian mandatory and voluntary carbon markets were selected. The study was conducted using case-study methodology and in-depth interviews, supported by archival and secondary data. It was found that the preferred asset classification of carbon credits varies among case-site participants, according to specific market requirements and economic uncertainty. Valuation methods differ across sites due to internal operations and economic factors. Impairment testing requires reference price indices determined by the nature of assets and professionals. Keywords: Financial Accounting, Accounting standards, Emission trading, Emission rights, EU ETS Classification-JEL: M41 Pages: 65-86 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=188.pdf File-URL: http://www.vse.cz/efaj/188 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:3:id:188:p:65-86 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/188 Template-Type: ReDIF-Article 1.0 Author-Name: Pavel Wünsch Title: Own Funds Under Solvency Regime Abstract: European legislation for the prudential regulation of insurance and reinsurance sector has existed since the 1970s, gradually materialized in Directive 92/49/EEC and Directive 2002/83/EC, both known as Solvency I. Due to economic and political development the regime become insufficient and therefore in 2009 was adopted the Directive 2009/138/EC known as Solvency II, which represents a crucial modernization of European insurance regulation. Each of these regimes prescribes its own rules for the valuation of assets, liabilities and available capital to cover regulatory solvency requirement. This paper is focused on detection of conditions set up for valuation of assets and liabilities under each of the regime and to outline the calculation of available capital under each of the model. Keywords: Regulation, Insurance, Solvency I, Solvency II, Available solvency margin, Available own Classification-JEL: G220, G280, K230 Pages: 87-102 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=189.pdf File-URL: http://www.vse.cz/efaj/189 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:3:id:189:p:87-102 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/189 Template-Type: ReDIF-Article 1.0 Author-Name: Martin Dvořák Author-Name: Lukáš Poutník Title: The Impact of Different Determination of Intangible Fixed Assets in Accordance with CAS and IPSAS on Financial Statements Abstract: The paper deals with the determination of intangible assets of Czech public sector. On 15 January 2013, the International Public Sector Accounting Standards Board issued new standard IPSAS 31 - Intangible assets. This standard represents a very sophisticated construction of accounting axioms moving public sector much closer to the private sector. The aim of this paper is to identify and make subsequent comparison of methodological elements in the context of intangible assets according to CAS and IPSAS 31. Moreover the paper tries to show the share of intangible fixed assets to the total assets throughout every type of organization of public sector like regions, municipalities, government departments etc. to assess subsequently the extent of possible impacts on financial situation in case of transition of financial reporting to IPSAS. Keywords: IPSAS, CAS, Intangible fixed assets Classification-JEL: C10, H50, M41 Pages: 103-116 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=190.pdf File-URL: http://www.vse.cz/efaj/190 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:3:id:190:p:103-116 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/190 Template-Type: ReDIF-Article 1.0 Author-Name: Jan Dvořák Title: How Do Czech Companies Report Fair Value Measurement Under IFRS 13? Abstract: Although the IFRS 13 standard has been effective for more than 4 years, there is virtually no practical research on this topic. Therefore, this paper focuses on reporting of fair value measurement under IFRS 13 in the Czech Republic. Firstly, the author identifies and describes the theoretical basis of IFRS 13 with a relevant literature review of the conducted research. Subsequently, the actual empirical research is presented on a sample of companies from the Czech Republic. The author reaches a conclusion that in some cases, companies in the Czech Republic fail to report compulsory information, as required by the IFRS 13 standard. Moreover, the empirical research has revealed that the proportion of the fair value measurement within fair value hierarchy is approximately one third for each of the three levels, and it does not change over time. Keywords: Fair value, IFRS 13, International accounting standards Classification-JEL: M40 Pages: 117-128 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=191.pdf File-URL: http://www.vse.cz/efaj/191 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:3:id:191:p:117-128 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/191 Template-Type: ReDIF-Article 1.0 Author-Name: Jan Pekař Title: Importance of Managerial Accounting from High Growth Online Company Valuation Perspective Abstract: Young, high growth internet/online companies are an attractive topic for market analysts and hot shots of Initial Private Offerings. At the same time, it is very complicated to provide a robust valuation for such companies, as shown by often unpredictable paths of share prices, resulting in the dot.com bubble burst in the past. This paper aims to explain why traditional valuation techniques fail to identify the value of a company with a fair degree of probability and tries to identify new metrics reported by managerial accounting that should be included in the valuation procedure. Assuming the condition of technological interchangeability of processes and practices, the presented paper concludes that using the New Economy specific metrics, such as traffic and various conversion factors explaining top-line traffic monetization, it is possible to adopt a conventional valuation technique, i.e. the DCF, with a very high degree of confidence for the incremental revenue and profit estimations. The interchangeability is also a proof of an innovative potential of the newly introduced technologies and explains the high frequency of strategic acquisitions on this market. Needless to say, the key information sources for valuation of companies under consideration are not financial statements, but managerial records instead, especially web analytics and search algorithm entries. Keywords: Online company valuation, High growth start-up valuation, Online business metrics Classification-JEL: G32, M40 Pages: 129-144 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=192.pdf File-URL: http://www.vse.cz/efaj/192 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:3:id:192:p:129-144 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/192 Template-Type: ReDIF-Article 1.0 Author-Name: Milan Fičura Title: Forecasting Stock Market Realized Variance with Echo State Neural Networks Abstract: Echo State Neural Networks (ESN) were applied to forecast the realized variance time series of 19 major stock market indices. Symmetric ESN and asymmetric AESN models were constructed and compared with the benchmark realized variance models HAR and AHAR that approximate the long memory of the realized variance process with a heterogeneous auto-regression. The results show that asymmetric models generally outperform symmetric ones, indicating that a correlation between volatility and returns plays an important role for volatility forecasting. Additionally, models utilizing a logarithmic transformation of the time series achieved generally better results than models applied directly to the realized variance. Echo State Neural Networks outperformed HAR and AHAR models for several important indices (S&P500, DJIA and Nikkei indices), but on average they achieved slightly worse results than the AHAR model. Nevertheless, the results show that Echo State Neural Networks represent an easy-to-use and accurate tool for realized variance forecasting, whose performance may potentially be further improved with meta-parameter optimization. Keywords: Realized variance, HAR model, Echo State Neural Networks Classification-JEL: C45, C53, C58 Pages: 145-156 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=193.pdf File-URL: http://www.vse.cz/efaj/193 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:3:id:193:p:145-156 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/193 Template-Type: ReDIF-Article 1.0 Author-Name: David Moreira Author-Name: Karel Janda Title: Measuring the M&A Value of Control and Synergy in Central and Eastern European Transition Economies with the Case of Avast -AVG Acquisition Abstract: We examine the valuation of synergies and control in mergers and acquisitions (M&A) in Central and Eastern European (CEE) transition economies. We determine this value based on comprehensive contemporaneous financial findings extracted from the Thomson Reuters database. Worldwide the market of mergers and acquisitions (M&A) is increasing, reaching in 2016 a value of 6.000 billion EUR globally. Among the CEE transition economies, the M&A total value in the same period was 50 billion EUR. It is widely accepted that between 60% and 80% of M&As are unsuccessful in value creation, so we further research evidences about an alternative framework to value the M&A also qualitatively. We develop a valuation model for prediction of the value of control and synergy in M&A deals. We suggest further directions for analysis in the field of M&A value creation, and recommend an alternative to the most used earning per share metric to enhance the predictability and transparency of valuation worldwide. Keywords: Corporate Governance, Mergers, Acquisitions, Control, Synergy Classification-JEL: G34 Pages: 157-170 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=194.pdf File-URL: http://www.vse.cz/efaj/194 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:3:id:194:p:157-170 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/194 Template-Type: ReDIF-Article 1.0 Author-Name: Anatoliy Kovalyov Author-Name: Olha Vynokurova Title: Practical Guideline for the Restructuring of Enterprises Involving Consulting Services (on the Example of Ukrainian Industrial Enterprises) Abstract: The article examines the role of consulting services in the restructuring of enterprises. It describes how consulting firms help to increase the efficiency of enterprises and their value by providing information and recommendations. The work grounds the importance of the restructuring implementation adaptation for enterprises to external market conditions in order to increase their value and improve efficiency, competitiveness and market activity. The authors describe the stages of the restructuring and the participation of a consulting firm at each stage. The work shows the methodology of the restructuring with the involvement of consulting services. Our theoretical arguments are supported by case from the experience of the auditing company has conducted the restructuring in industrial enterprise. The example of implementation the restructuring of the organizational structure of the industrial holding in Ukraine through the services of an auditing company is given. This paper provides an effective way of the restructuring acceptable not only for industrial companies in Ukraine but also for enterprises that operate in a transitional economy. Keywords: Restructuring, Adaptation, Diagnostics of companies, Consulting services, Company's value Classification-JEL: G34 Pages: 171-190 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=195.pdf File-URL: http://www.vse.cz/efaj/195 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:3:id:195:p:171-190 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/195 Template-Type: ReDIF-Article 1.0 Author-Name: Nuno Ribeiro Author-Name: Sónia Nogueira Author-Name: Ivone Freitas Title: Transparency in Portuguese Local Government: A Study of its Determinants Abstract: Transparency of public management is fundamental to bringing citizens closer to public managers and as such universally considered an element of good governance. The main aim of this study is to identify the factors determining transparency in public management of Portuguese local authorities. Using the Municipal Transparency Index of 2013 and 2014, socio-demographic, political and economic-financial variables are studied for the population of 308 Portuguese local authorities by the means of testing the previously formulated research hypotheses in the light of the agency theory. The results show that transparency in public management of Portuguese local authorities is determined by their size, the number of individuals aged between 15 and 74 who use the internet, unemployment rate, financial autonomy and the net debt. Keywords: Local Authorities, Transparency, Accountability Classification-JEL: H11, H70, H72 Pages: 191-202 Volume: 2017 Issue: 3 Year: 2017 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=196.pdf File-URL: http://www.vse.cz/efaj/196 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2017:y:2017:i:3:id:196:p:191-202 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/196