182 RA»UNOVODSTVO,

ACCOUNTING, AUDITING
REVIZIJA
ANDI FINANCIJE,
FINANCE br.
NO.3/2001.
3/2001 MARCH
OÆUJAK

C O N T E N TS

CURRENT ISSUE
M Privatization of Companies ∑ the Procedure, Participants and Key Issues
(Report from the Symposium Held in Zagreb on 14 February 2001 .................................................................................. 3
ACCOUNTING
M Annual Statistical Report for 2000 should be Submitted by 31 March 2001
(Ivan »ONKA©, BSEc; Danica LON»AR ∑ GALEK, MSEc & CA & CPA) ................................................................................ 5
M Specificity of Annual Accounting in Trading Activity (–urica JURI∆, MSEc & CA) ...................................................... 12
M Specificity of a Building Contractor’s Annual Accounting (Danica LON»AR ∑ GALEK, MSEc & CA & CPA) ................... 22
M Annual Account in Hotel and Catering Activity (Ljerka MARKOTA, BSEc & CA) ............................................................. 30
M Specificity of the Annual Account in Repair and Maintenance Activities (Vlado BRKANI∆, ScD & CA) .......................... 40
M Cash Flow Statement ∑ the Indirect Method (Maja DAMJANOVI∆, BSEc) .................................................................... 46
M Production Order in Business Operations’ Accounting (Prof. Viktor FRANC, ScD) ....................................................... 56
INTERNATIONAL ACCOUNTING AND AUDITING NEWS .......................................................................................... 63
BUSINESS FINANCE
M Analysis of Financial Statements ∑ New Procedures (Prof. Ljiljana VIDU»I∆, ScD) ...................................................... 66
M The Collection Procedure of Accepted Bills (Sanja MIRKOVI∆, BL) ............................................................................ 73
M New Directive for Payments from the Joint Account of the Treasury (Andreja KUSAKOVI∆, BSEc & CA) ....................... 78
TAXES
M Tax Counselling Offices also in Croatia (Vlado BRKANI∆, ScD & CA; Maja GREGURI∆, BL) ........................................... 83
M The Control Performed by the Tax Administration when Accepting and Processing the Annual Tax Returns
(Form DOH and VAT-K) for 2000 (Vlatka LON»AR, BL) ................................................................................................ 87
M Examples of Withholding Tax Calculation (Dubravka SEKULI∆ - GRGI∆, MSc) ............................................................ 92
TRADES AND FREE ENTERPRISES
M Tax Position of Craft Activities under the New Tax Laws (Lucija TURKOVI∆ ∑ JARÆA, BSEc & CA) ............................... 94
COMMERCIAL TRANSACTIONS
M Price System and the Control of Prices in the Republic of Croatia (Zvonimir TRAMPUS) ............................................ 101
M Temporary Service Contract (Hrvoje MOM»INOVI∆, MScL) ........................................................................................ 108
TARIFFS
M TIR Carnet in International Road Traffic Customs Procedures (Boris ©O©TARI∆, BL) .................................................. 109
M Temporary Import of Commodities (Oskar CUKROV, BSEc) ..................................................................................... 112
FOREIGN EXCHANGE LAW
M Credit Transactions of Domestic Persons with Foreign Subjects (Mirjana KOVA»I∆, BSEc) ........................................ 116
CORPORATE LAW
M Secret Company (Prof. Vilim GORENC, ScD) ............................................................................................................ 127
LABOR AND SOCIAL LAW
M Valorization of the Sick Pay (Ljubica –UKANOVI∆, BL) ................................................................................................. 134
M Special Working Condition Jobs (Nikola KNEÆEVI∆, BL) .............................................................................................. 139
SALARIES
M Statistical Report on Salary Payments and the Compensations of the Material Rights of Employees
(Forms SPL and TMP) (Lucija TURKOVI∆ ∑ JARÆA, BSEc & CA) ..................................................................................... 143
MANAGEMENT
• Skills and Techniques of Interviewing the Candidates for New Employees
(Prof. Majda RIJAVEC, ScD; Dubravka MILJKOVI∆, ScD) ................................................................................................ 145
NEW REGULATIONS .................................................................................................................................................. 152
INFORMATIONS FOR MANAGERS ............................................................................................................................ 154
CURRENT ISSUES FROM ECONOMY ........................................................................................................................ 154
NEWS FROM EUROPEAN UNION ............................................................................................................................. 155
ECONOMIC STATISTICS ............................................................................................................................................ 159
BUSINESS INFORMATIONS ....................................................................................................................................... 166
MARCH
OÆUJAK ACCOUNTING, AUDITING
RA»UNOVODSTVO, AND
REVIZIJA FINANCE NO.
I FINANCIJE, 3/2001
br. 3/2001.
SUMMARIES
–urica JURI∆, MSEc & CA
SPECIFICITY OF ANNUAL ACCOUNTING IN TRADING ACTIVITY
The contents of this article point to some specific business events
concerning the trading activity that have specially important influence
on annual accounting with respect to correcting possible errors before
making the elementary financial statements and establishing the
business result correctly.
Key Words: trading activity, business accounting, financial statements.
Page: 12
✻ ✻ ✻
Danica LON»AR-GALEK, MSEc & CA & CPA
SPECIFICITY OF A BUILDING CONTRACTOR’S ANNUAL
ACCOUNTING
The building trading as an activity including project engineering and
reconstruction is a special activity with respect to the course of business
transactions and with respect to the participants of total business
process as well. The relations and obligations of the participants in
building and performing construction works are regulated by
professional regulations. All that should be followed by bookkeeping
operations and in accordance with the rules of accounting profession,
the business situations should be settled with respect to presenting the
income and expenditure, delineation of the works at the end of a year,
proceeding with advance payments and deposits, long-term cost
provisions etc. Here, one should distinguish the relations of a building
contractor who performs the accounting of the performed construction
works for an investor who ordered the building (reconstruction) from
the relations when the same person appears to be a building contractor
and the investor, making the buildings for the market.
The subject will be elaborated more in detail in further text of the
article.
Key Words: building industry, accounting of business operations,
financial reporting.
Page: 12
✻ ✻ ✻
Ljerka MARKOTA, BSEc & CA
ANNUAL ACCOUNT IN HOTEL AND CATERING ACTIVITY
This article points to the specificity of catering activity that can be
performed on an individual basis but it can be organized very often
together with hotel business. They are connected by jointly rendered
services to guests and, as well, by the same professional regulations. It
should be emphasized that a new article ‡ 10a, item h - of the Value
Added Tax Law, has been applied since 1 January 2001 by means of
which the services of the organized stay of foreign tourists, that are
paid by foreign remittances, are tax burdened by 0% of the VAT. That
does not apply however to the business operations during the year of
2000 and the catering and hotel services during the whole year of 2000
are to be tax burdened with 22% of the VAT.
Key Words: accounting of business operations, VAT, catering.
Page: 30
✻ ✻ ✻
Vlado BRKANI∆, ScD & CA
SPECIFICITY OF THE ANNUAL ACCOUNT IN REPAIR
AND MAINTENANCE ACTIVITIES
Stating the positions in the elementary financial statements of the
companies dealing with repairing and maintenance activities differs in
details in comparison with the companies dealing with other activities.
The author mentions the specificity connected with large repairs with
which the services in process can emerge, making so the work-in-
process inventories. They request special solutions connected with
taxes. A special problem of this activity is the duality of inventories that
are the merchandise in one instance and materials and spare part
inventories at some other instance. More detailed explanations are to
follow.
Key Words: accounting of business operations, financial statements.
Page: 40
✻ ✻ ✻
Prof. Viktor FRANC, ScD
PRODUCTION ORDER IN THE ACCOUNTING OF BUSINESS
OPERATIONS
The production order is a document of an exceptional importance in
the accounting of business operations, specially in production
organizations. The article deals with the issues of the organization of
business operations in the conditions of the application of a production
183
183
order. Special attention has been paid to the goal, purpose and contents
of a production order with a detailed example of accounting.
Key Words: accounting of business operations, production order
Page: 56
✻ ✻ ✻
Prof. Ljiljana VIDU»I∆, ScD
ANALYSIS OF FINANCIAL STATEMENTS ∑
NEW PROCEDURES
The values of financial indicators cannot in themselves represent
satisfactory basis for making qualified estimates on the current position
and a company’s well-being. In order to make an objectified estimate,
it is necessary to analyze the indicators in the light of their mutual
interdependence, what creates the conditions for explaining whether
the inferior values of individual indicators mean the jeopardized
liquidity or they are maybe the results of the managerial decisions with
the purpose of the increase of the own capital profitability. Beside the
comparison in relation to the industry, it is necessary to use the trend
analysis and find out whether the management uses more conservative
or more liberal accounting procedures.
Key Words: financial analysis, financial statements.
Page: 66
✻ ✻ ✻
Zvonimir TRAMPUS, BL
PRICE SYSTEM AND THE CONTROL OF PRICES IN
THE REPUBLIC OF CROATIA
The Government of the Republic of Croatia, as authorized by the article
6 of the Law, issued the Decree on the Direct Measures of the Price
Control (Official Gazette no. 2/01) and the Decree on Stating the
Highest Petroleum Product Price Level (Official Gazette no.2/01),
through which the earlier valid regulations on the price control
measures are no more valid.
This article analyzes the elements of the price system and price control
in the Republic of Croatia with special reference to the latest
implementation rules regulating the mentioned subject presently.
Key Words: prices, price control, market.
Page: 101
✻ ✻ ✻
Mirjana KOVA»I∆, BSEc
CREDIT TRANSACTIONS OF DOMESTIC PERSONS
WITH FOREIGN SUBJECTS
The Law on Credit Transactions with Foreign Countries (Official Gazette
No. 43/96) regulates essential issues concerning the conditions and
the way of conclusion, as well as recording and realization, of the credit
arrangements between domestic and foreign persons.
A domestic legal person decides independently on borrowing and
concluding the credit business with foreign subjects and takes the
responsibility for the fulfillment of the liabilities from such a contract,
what is to suppose that the contracting parties should, during the
contract concluding procedure, examine mutual financial reliability
and the abilities to fulfil the obligations taken.
The domestic legal person concludes a credit arrangement with the
condition that the resources will be used for the activity for which the
end user has been registered, respectively it grants a credit to a foreign
person from the activity for which the domestic person has been
registered. Having concluded a credit contract with a foreign person,
the domestic legal person enters a debtor-creditor relationship with a
foreign person.
Key Words: foreign exchange operations, credits, guarantees.
Page: 116
✻ ✻ ✻
Prof. Vilim GORENC, ScD
A SECRET COMPANY
A secret company is a legal contract of obligation in which a secret
member participates with the share of property in an enterprise of
another (public partner, entrepreneur, owner of an enterprise, general
partner) onto whom the role of a secret member is transferred, and
who, on the base of such a share, acquires the right to participate in the
profit and loss of the enterprise, while in relation to the third parties,
the entrepreneur is an exclusive holder of all the rights and liabilities.
The article explains the contents of a contract on a secret company.
Key Words: secret company, contracts.
Page: 127