European Financial and Accounting Journal, 2009 (vol. 4), issue 3

Introduction

Watch Out for Post-crisis Regulatory Euphoria

Petr Dvořák

European Financial and Accounting Journal 2009, 4(3):4-5 | DOI: 10.18267/j.efaj.69  

Dear readers, although the crisis is not over yet it seems to be giving up as signs of economic upturn have been flashing lately. Logically, analysts and regulatory authorities seem to have shifted the scope of their interest. It is not research for roots of crisis any more - they are now formulating lessons learnt to shape the future of financial system. Similarly to historical periods of economic downturn nowadays we can hear voices calling for sound and more strict regulation. While this is perfectly reasonable it raises a question whether to hold appropriate the chosen trend of fixing the financial system. What are the most important issues? Last...

Articles

Historical Costs versus Fair Value Measurement in Financial Accounting

Dana Dvořáková

European Financial and Accounting Journal 2009, 4(3):6-18 | DOI: 10.18267/j.efaj.70  

There are two important points in which in which we need assets and liabilities measured in financial accounting: on initial recognition and at a balance sheet day. Many International Financial Reporting Standards (IFRS) used the fair value measurement concept. But most of these standards use the fair value measurement method only at a balance sheet day. On initial recognition assets and liabilities are measured usually at costs. The IASB presented the discussion paper "Measurement Bases for Financial Accounting - Measurement on Initial Recognition (2005)" which proposed fair value measurement on initial recognition for all assets and liabilities....

Accounting Interpretation of Cross-border Mergers in the Czech Republic Based on Czech Accounting Standards

Jana Skálová, Tomáš Podškubka

European Financial and Accounting Journal 2009, 4(3):19-39 | DOI: 10.18267/j.efaj.71  

The paper deals with cross-border mergers that may be performed either out of or into the Czech Republic and focuses on the accounting and tax aspects of these transactions. Attention was also paid to the most important legal requirements imposed on merger projects and the net assets valuations. The Directive 2005/56/EC brought in new possibilities of business transformations across the EU member states' borders. Income tax advantages that may be gained in cross-border mergers were implemented by virtue of the Directive 90/434/EEC. It may be difficult to meet stringent requirements that are conditional upon enjoyment of the neutral tax treatment.

Fair Value Accounting and Measurement through FASB's Developments

Carmen Giorgiana Bonaci, Jiří Strouhal, Dumitru Matis

European Financial and Accounting Journal 2009, 4(3):40-63 | DOI: 10.18267/j.efaj.72  

Our research follows the path of fair value as a term and concept, as well as its disclosure, measurement and recognition back from 1953 until our days, and analyzes the regulations issued by United States Accounting Standard setters, through the point of view of the historical events, which led to their appearance. Our study brings its' contribution to complementing growing literature on the value relevance of fair value, but focuses on the assessment of fair value as a financial reporting standard for financial instruments. The objective of the paper is to link the regulations with the historical events, which have guided them to their current shape...

Treasury Flows Overview

Cornelia Elena Tureac, Anca Gabriela Turtureanu

European Financial and Accounting Journal 2009, 4(3):64-76 | DOI: 10.18267/j.efaj.73  

The balance sheet presents the liquidities balance and the liquidity equivalents of the company at the end of the period. By examining the balances referring to the two consecutive periods, it can be stated that if the liquidities and the liquidity equivalents have increased or have decreased during the period. But the balance does not indicate why these balances have varied during the exercise. The profit and loss balance presents the information related to incomes, expenses and the results due to the different activities - key-points regarding the sources and the use of the liquidities and the liquidity equivalents, but this financial situation does...

Knowledge Services as a Basis of Enterprise Growth

Zuzana Tučková

European Financial and Accounting Journal 2009, 4(3):77-86 | DOI: 10.18267/j.efaj.74  

During 20th century principles of the work division were used in the business activities of the companies. These principles took advantage of the knowledge of scientific management production. These principles were also transferred to the management sphere itself. The principles worked and supported the company economics in the mass manufacture period of standard products till the market was saturated. The companies grew to giant dimensions and integrated all what was needed for the manufacture. The activities divided by the work division were centralized in big hierarchical structures of the firms which realized the changes with difficulty. At the...