European Financial and Accounting Journal, 2011 (vol. 6), issue 1

Introduction

20 years of the Faculty of Finance and Accounting at the University of Economics, Prague

Petr Dvořák

European Financial and Accounting Journal 2011, 6(1):4-6 | DOI: 10.18267/j.efaj.35  

Dear readers, in our country when we talk about the age of the university, everyone likely recall in memory the year 1348, which we have indelible put together with the founding of Charles University at history lessons. In comparison with this the year 1991, in which Faculty of Finance and Accounting was founded, it may seem though as yesterday, but it certainly is the reason for some hindsight. Establishment of the Faculty was the result of post-revolutionary changes in the University of Economics, Prague. The basis of the new faculty was at that time placed by two major departments - the Department of Finance and Credit and Department of Accounting,...

Articles

Material Flow Cost Accounting in Czech Environment

Dana Kovanicová

European Financial and Accounting Journal 2011, 6(1):7-18 | DOI: 10.18267/j.efaj.36  

The theme of article is the draft of ISO 14051-Environmental Management - Material flow cost accounting - General framework, whose final form should be finished at the end of 2011 or later. This standard does not take in consideration the national particularity. Therefore, the main aim of this paper is to review how the concept of MFCA meets the Czech conditions. The MFCA (as one of cost accounting methods) is in Czech Republic a part of management accounting (MA), which coincides with the Anglo- Saxon concept. MA is a skeleton for other components of information system, closely connected with the physical process. The environmental management accounting...

Impact of IFRS on Deferred Taxes Methodology in the Czech Republic and comparison with IFRS for SMEs

Marcela Žárová

European Financial and Accounting Journal 2011, 6(1):19-38 | DOI: 10.18267/j.efaj.37  

Investigating impact of IFRS on the accounting regulatory system in the Czech Republic, there should be highlighted that IFRS were introduced into the regulatory system gradually as a separate regulatory system for determined group of accounting entities, on the other hand IFRS have had influence on the development of the local accounting rules during last decade. It was awaited by practitioners and academics too, that the process of deferred taxes reform will be finalized by issuing the Decree on accounting for business entities and by the Czech Accounting Standard on deferred taxes. But the reform as for deferred taxes was realized only partially...

Comparative Analysis of Czech Accounting with International Regulation from SMEs Perspective

Jiří Strouhal, Marie Paseková, Libuše Müllerová

European Financial and Accounting Journal 2011, 6(1):39-59 | DOI: 10.18267/j.efaj.38  

Use of harmonized accounting standards may reduce investor's uncertainty and can thus reduce the cost of capital. It can significantly improve the communication between business users and all their statements. Due to the globalization of business and international harmonization of financial reporting Czech Republic experiences a shift in paradigms from historical costs accounting towards fair value measurement. Paper provides an analysis between national accounting legislature and international referential. There is also provided how the ability to measure accounting harmonization can be helpful from the perspective of a globalized world. A comparative...

Fair Value Measurement in Financial Reporting

Dana Dvořáková

European Financial and Accounting Journal 2011, 6(1):60-75 | DOI: 10.18267/j.efaj.39  

Measurement in financial accounting has been the most discussed issue in recent decades. The last very important result of the convergence process between IFRS and U.S. GAAP was adopting IFRS 13 - Fair Value Measurement in May 2011. The objective of IFRS 13 is to unify the approaches to determining fair value under IFRSs. The aim of this paper is to offer a comprehensive evaluation of the pros and cons that this standard brings.

Portfolio Theory and Electricity Forward Markets

Michal Michalovský, Igor Paholok

European Financial and Accounting Journal 2011, 6(1):76-103 | DOI: 10.18267/j.efaj.40  

In the discussion on the relationship between spot and forward prices in electricity markets, the equilibrium approach has an unambiguous prevalence. It is the relative recency of this market that gives rise to the question of how precisely forward prices converge to the spot prices. We decide to measure this convergence, with its eventual imbalance called risk premium, on several European energy exchanges trading electricity futures. The concept of risk premium, as it is worked out by Bessembinder and Lemon (2002) is reviewed in our essay through the Markowitz portfolio theory. Unlike in the B-L model, where the variance of the spot price has a strictly...