European Financial and Accounting Journal, 2010 (vol. 5), issue 1
Introduction
Short Thought about One Calendar
Petr Marek
European Financial and Accounting Journal 2010, 5(1):4-5 | DOI: 10.18267/j.efaj.41 
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...
Articles
Impact of IAS 12 on Deferred Taxes Regulation in the Czech Republic.
Marcela Žárová
European Financial and Accounting Journal 2010, 5(1):6-27 | DOI: 10.18267/j.efaj.42
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...
VAT and Tax Credits: A Way to Eliminate Tax-Evasive Use of Transfer Prices?
Tomáš Buus, Jaroslav Brada
European Financial and Accounting Journal 2010, 5(1):28-50 | DOI: 10.18267/j.efaj.43
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.
Behavioral Consequences of Optimal Tax Structure - Empirical Analysis
Stanislav Klazar
European Financial and Accounting Journal 2010, 5(1):51-63 | DOI: 10.18267/j.efaj.44
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...
Progression of Financial Reporting in Czech Republic and its Regulation
Jana Ištvánfyová, Ladislav Mejzlík, Jiří Pelák
European Financial and Accounting Journal 2010, 5(1):64-77 | DOI: 10.18267/j.efaj.45
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...