European Financial and Accounting Journal, 2011 (vol. 6), issue 3
Introduction
Risk and Its Concept: Scientific and Artistic
Petr Marek
European Financial and Accounting Journal 2011, 6(3):4-6 | DOI: 10.18267/j.efaj.22 
Dear readers, the term "risk" is one of the most frequently used concepts in economic science. The origin of this word is necessary to looking in ancient Greek, where the word "riza" (written "ριζα") supposedly signified the "root" i.e. a kind of obstacle in the way of which a wayfarer could trip up on his road. In a similar meaning the term later appeared in Latin, which represented a "cliff" on which can ships may break. Then the word began occur in similar form in the other languages in the sense of danger, which traders have to face during transport by the sea. The word "risk" probably entered English through continental Europe...
Articles
Harmonization of Requirements for Professional Competence of Managerial Accountants and Controllers
Bohumil Král, Libuše Šoljaková
European Financial and Accounting Journal 2011, 6(3):7-20 | DOI: 10.18267/j.efaj.23
The aim of the paper is to comment continuing works on the project whose purpose is to state generally accepted requirements for professional competence of managerial accountants and controllers. In this regard, Draft for a common Statement which defines conceptual outcomes of the project is the subject of comments. Paper concludes that - despite the fact that Draft is the first step only - it brings substantial contributions: it has been leading to better understanding of differences which accompany this profession development in different part of globe and it enables better identification of common features, but also distinctions in profiles and...
Measurement Bases for Acquisitions and Mergers in Financial Accounting and in Commercial Law
Hana Vomáčková
European Financial and Accounting Journal 2011, 6(3):21-37 | DOI: 10.18267/j.efaj.24
In association with transactions involving businesses, acquisitions and mergers, etc., commercial law stipulates the new measurement of business assets and thus also net business assets. Similarly, financial accounting stipulates the new measurement of assets, liabilities and net assets with an impact on the amount and structure of equity. It is a principal question as to whether the new measurement bases required by both commercial law and financial accounting are in principal identical. Practice convinces us that the concepts provided in legislation (both commercial and accounting) differ in many cases and if a principle of precedence of the legal...
Accounting System and Financial Performance Measurements
Zbyněk Halíř
European Financial and Accounting Journal 2011, 6(3):38-65 | DOI: 10.18267/j.efaj.25
The paper concerns measuring and reporting of financial performance of an enterprise. Currently increasing emphasis is placed on performance measurement and management. Within performance measurement and management in general the role of financial performance is becoming increasingly important. The paper is concerned with measuring and reporting of financial performance of an enterprise primarily from manager's point of view. In its first part it deals primarily with the connection between the performance of an enterprise in general and financial performance. In subsequent part it is about the relation of performance management and management accounting....
Evaluating the Quality of Rewards Systems
Petr Petera
European Financial and Accounting Journal 2011, 6(3):66-91 | DOI: 10.18267/j.efaj.26
This paper deals with the issue of desired characteristics of rewards systems and outlines possible ways of their evaluation. Aims of the rewards systems are analyzed and desired properties, components and updating procedures that should be put in place are identified. Rewards system is understood as a tool for supporting business's goals, attracting, motivating and retaining competent employees. It is stressed that rewards system is an important but not the only tool for reaching the mentioned goals and it should be used congruently with other tools (e.g. proper job design, recruiting, training, creating positive workplace). An encyclopedic preview...
Measurement Issues of Financial Placement and Technical Provisions of Czech Insurance Companies
Jiřina Bokšová
European Financial and Accounting Journal 2011, 6(3):92-102 | DOI: 10.18267/j.efaj.27
Measurement represents one of the most important methodological elements of accounting because it affects the overall informative ability of financial statements. The chosen method of valuation affects not only the amount of assets and liabilities, but the size of costs and revenues of the entity as well; therefore it has a major impact on profit and solvency of insurance companies. Each accounting regulation - whether at national or supranational level - includes relatively thorough provisions related to valuation. In the Czech accounting system valuation is regulated by the Accounting law, which distinguishes between the initial valuation of assets...
Economic Value Added and Its Benefit for Owners and Managers of the Czech Company
Bohuslava Knapová
European Financial and Accounting Journal 2011, 6(3):103-110 | DOI: 10.18267/j.efaj.28
The paper is oriented to the area of management and decision making of company owners and managers. The absolute synthetic performance criterion Economic Value Added represents the criterion of the residual income and managerially measured profit. Concrete questions must be solved with the ascertainment of this financial criterion as for example how correctly to measure capital costs, how to determine the right amount of the investment capital and return on investment capital, eventually return on assets, or how to work with the time horizon in the measurement of Economic Value Added, because this criterion should be presented also as the important...
Current Issues of Automobile Insurance
Eva Ducháčková
European Financial and Accounting Journal 2011, 6(3):111-122 | DOI: 10.18267/j.efaj.29
Auto insurance belongs to the most important areas of the insurance market from the quantitative point of view and based on its significance in covering auto-related risks. The significance of damage impact, particularly in liability insurance, requires a high degree of regulation. Standard products, auto liability and collision insurance are following the overall changes in insurance policies and are adjusting to the changing conditions. One of the major issues in the auto insurance in the Czech Republic and internationally is a toughening competition which results in changing insurance premiums. At the same time, new forms of auto insurance are introduced...