Czech Financial and Accounting Journal, 2007 (vol. 2007), issue 3

Výzkum na Katedře financí a oceňování podniku

Miloš Mařík

Český finanční a účetní časopis 2007(3):5-6 | DOI: 10.18267/j.cfuc.227  

Notes on the Importance of the Teaching of the History of Economic Theories for the Students of the UEP

Jitka Koderová

Český finanční a účetní časopis 2007(3):7-20 | DOI: 10.18267/j.cfuc.228  

The article deals with the question how important is the knowledge about the history of the economic theory for the students of the University of Economics of Prague (UEP) in the time when the courses of standard micro and macro economics are one of the main parts in the education of the young economists. History of Economic Theories (HET) had been taught at the Czech universities of economics since 1945. At the beginning of this period HET was oriented mainly on the critique of selected non-Marxian economic theories, especially of the Austrian school, but in the course of time the critique was displaced by the positive explication of the development...

Prepayments for Purchase of Property, Plant and Equipment

Libor Vašek

Český finanční a účetní časopis 2007(3):21-26 | DOI: 10.18267/j.cfuc.229  

The article provides an illustrative example whose aim is to show an accounting treatment for a purchase of property, plant and equipment when the purchase price is denominated in foreign currency and prepayments are provided by entity. The following question arises in connection with that transaction: Shall be the prepayments denominated in foreign currency translated at balance sheet date using closing rate or not? The solution results from IAS 21 where the requirement to translate non-monetary items (including property, plant and equipment) using historical rate is included. This policy leads to different results than Czech accounting standards.

Main risk areas in using return on investment in financial decision making

Marie Míková

Český finanční a účetní časopis 2007(3):27-31 | DOI: 10.18267/j.cfuc.230  

This paper describes three main risk areas in using return on investment in financial decision making. The paper also shows how to analyze differences between planned and actual size of return on investment and preconditions for using return on investment in financial decision making.

Some Less Known Charting Methods of Technical Analysis and Possibilities Its Using for Identification Trend Changes

Jitka Veselá

Český finanční a účetní časopis 2007(3):32-40 | DOI: 10.18267/j.cfuc.231  

Technical analysis is a method of predicting price movements and future market trends by studying charts and future of past market action. By technical analysts are used past information about prices, volume of trading and indexes for predicting futures prices movements. Technical analysis is a subjective "art" or skill whose success depends on a great deal on the analyst experience. Technical analysis is based on three underlying principles: 1.Market action discounts everything, 2.Patterns exists and 3.History repeat itself. The technical analyst has a wide variety of technical analysis tools and techniques to choose from. It is possible all tools...

Measuring of bond price sensitivity

Jarmila Radová

Český finanční a účetní časopis 2007(3):41-55 | DOI: 10.18267/j.cfuc.232  

In this article is analyzed duration as a measure of interest risk of bonds. We study significant factors which influence on highness of duration and also price chance of bonds. We discuss different ways to calculate duration and also we try to show its importance to management of bonds portfolio.

Electronic Money in the Czech Republic

Stanislava Půlpánová

Český finanční a účetní časopis 2007(3):56-65 | DOI: 10.18267/j.cfuc.233  

This paper aims at comprehension of fundamental economic category - money in its actual mode - electronic money. It is the great challenge of recent economy to explain its substance and forms of its functions. Perhaps we can assume the idea that money ought to be considered as a flow of information. Thus this paper is also describing the basic methods of regulation of electronic money using by the Czech National Bank. It was not the goal of this article to discuss the security of electronic money (as e.g. digital signatures, public key cryptography) due to its technical nature.

Research and Development and Innovation Promotion

Libuše Müllerová

Český finanční a účetní časopis 2007(3):66-74 | DOI: 10.18267/j.cfuc.234  

The commentary of the article is oriented on the definition of the research, development and innovations among which the author identifies interfaces. The borderlines among them evidently are hard to draw. The article deals with analysis of the factors influencing innovation performance in new EU member countries, particularly in the Czech Republic. Regulatory provisions of national innovation system in the EU member countries make use of direct and indirect forms of innovation promotion. Indirect promotion means supporting not only innovation, but also supporting research and development, which is preceding innovation output. In the EU member countries...

Financial Scandals, Accounting Change and the Role of Accounting Academics: A Perspective from North America

Marie Míková

Český finanční a účetní časopis 2007(3):75-78 | DOI: 10.18267/j.cfuc.235  

This paper examines the responses of North America academics to the recent wave of accounting and audit scandals. The paper suggests that the main response to these scandals can be divided into two big groups. The first one takes the position that the whole system works and the scandals are in fact an evidence of this functional system. The second group suggests to introduce and to intensify the education of ethics and moral aspects in various curricula. Authors of the paper however gather that both these reactions do not offer the solution of social and political context of accounting. They come to the conclusion that only broad collective action...

Capital Structure versus Rating

Pavel Marinič

Český finanční a účetní časopis 2007(3):79-83 | DOI: 10.18267/j.cfuc.236  

Economic rising request a new types and form and resources for financing needs and investing. Clear chance appears use of rating in financials decisions. Rating impacts capital structure and has influence final decision on acceptance of capital investment and capital structure. Anticipation of credit rating is possible in the case reflect the long-term development value of firm.

Why and How to Evaluate the Creditworthiness of SMEs' Business Partners

Anna Staňková

Český finanční a účetní časopis 2007(3):84-87 | DOI: 10.18267/j.cfuc.237  

This article presents a method for developing internal ratings to best select among the business partners of a firm. It represents very complex goal which should be performed according to some proven managerial techniques. The author implemented the Analytic Hierarchy Process in which the problem is approached step by step. Managers and experts judgments are taken into consideration when structuring the problem. Since qualitative factors come into play, special attention is given to determining not only quantitative but also qualitative criteria. The process continues with the assessment of importance of group of criteria and sensitivity analysis....

Impact of Revenue Recognition on Future Performance

Libuše Šoljaková

Český finanční a účetní časopis 2007(3):88-91 | DOI: 10.18267/j.cfuc.238  

The SEC issued Staff Accounting Bulletin No. 101 regarding the revenue recognition. Critics of the bulletin stated that it would eliminate industry-accepted revenue recognition practices and reduce quality of reported earnings because revenues recorded prior to the completion of the earnings process contains value relevant information about future performance. The research investigates these hypotheses using the sample of firms that accelerated revenue prior to SAB and a matched set of firms that were unaffected by this regulation. In preadoption period SAB firm report more positive earnings than they do in post-adoption period and than unaffected firm.

Management Accounting Systems Adoption in Startup Companies

Jaroslav Wagner

Český finanční a účetní časopis 2007(3):92-95 | DOI: 10.18267/j.cfuc.239  

This assay deals with discussion about research issues and findings concerning determinants of management accounting systems adoption in early-stage/start-up companies and their impact on company growth and performance in US firms. It notices common and different conditions in US and Czech companies and it controverts qualitative approach to appraisal of MAS adoption level.

International Regulation of Financial Reporting: Genesis, Development and Present

Dana Kovanicová

Český finanční a účetní časopis 2007(3):96-100 | DOI: 10.18267/j.cfuc.240  

The paper is a review of International Accounting publication (first edition), authors of which are two university teachers: Z. Šuranová and M. Škoda. This review especially appreciates a broader orientation on the institutional base of standardization, a critical view on the one-side argumentation supporting the accounting internationalization as well as an initiative to changes in education of accounting. Problem of asymmetry in accounting and financial reporting is also discussed in the survey.