外文翻译捷克共和国的新会计制度会计审计.docx

1、外文翻译捷克共和国的新会计制度会计审计The mew accounting system in the Czech RepublicRudolf SchrollVysoka skola ekonomicka v PrazeAbstractThe purpose of the paper is threefold. First, to provide an assessment of the accounting system operated in Czechosolovakia during the period of the so-called centrally planned econ

2、omy (i.e. the command economy).Second, to provide a characterization of the new accounting system introduced in 1993. third, to provide some indication of developing tendencies likely to become significant in the future.ACCOUNTING IN THE CENTRALLY PLANNED ECONOMYIt is important to understand that th

3、e objectives of accounting, especially of financial accounting ,in the centrally planned economy are fundamentally different from the objectives of accounting in the market economy. These differences have implication for the direction and rate of accounting change during the transition to the market

4、 economy.The specific nature of accounting in the centrally planned economy may be examined from four aspects. First, accounting was not ,in principle, an instrument at the disposal of the management of an enterprise or other entity(e.g. institution, organization).On the contrary, accounting was req

5、uired to fulfil the needs of the central institution of the planned economy, such as the State Planning Commission Central Statistical Office, Ministry of Finance. The economic ministries(for various branches of the national economy).It was therefore necessary for the accounting system to be central

6、ly directed and controlled. This was achieved through the introduction of the following measures:a uniform chart of accounts, designed centrally and obligatory for all profit making enterprises and other economic entities. A separate and obligatory chart of accounts was prepared for non-profit seeki

7、ng entities;a detailed accounting methodology, adherence to which was obligatory for all accounting entities. Its preparation was the responsibility of the Ministry of Finance;a uniform system of financial statements intended to serve the needs of the central authorities. These comprised not only th

8、e balance sheet and the profit and loss account but also from eight to ten supplementary statements dealing with various aspects of an enterprises activities. There were several reporting cycles of differing lengths. For example, the profit and loss account was submitted to the central authorities m

9、onthly whereas the balance sheet was submitted only biannually. The other statements were submitted either quarterly or annually. There was no cash flow statements because the financing of enterprises was no cash flow statement because the financing of enterprises was centralized.The financial state

10、ment accorded most importance was the profit and loss account. It was not prepared for the needs of the enterprise but to satisfy the needs of the central authorities through the generation of macroeconomic statistics. In the profit and loss account expenses were classified by elements of cost. Reve

11、nues were classified so as to reveal the flows in different sectors of the economy, such as production, trade and transport. The profit and loss account was intended to serve as a basis for the computation of the principle macroeconomic indicators, such as national product, national income and so on

12、.Because of the system of centralized financing the balance sheet was not considered to be an important financial statement. Because of the absence of private ownership in the means of production there was no conception of “owners capital”. The passive (i.e. capital and liabilities) side of the bala

13、nce sheet had an especially poor information content.The detailed methodology was issued not only for financial accounting but also for cost accounting. The principle of monism (i.e. the unified perception of reality ) was applied strictly. The same result had to be shown in financial accounting and

14、 cost accounting.Second, the financial statements were required to provide information for the use of the central authorities in the administration of the planned economy. These financial statements had very limited importance for the management of the enterprise; they were relevant to the functioni

15、ng of the centralized system of financing. Features of system were:the monopoly position of the state bank;the absence of bankruptcy(for all practical purposes);the centrally organized system of price fixing;the vey limited influence of interest.Prices were determined primarily on the basis of cost

16、plus. However, the system of wholesale prices was independent of the system of retail prices. Similarly, the system of foreign trade price was self-contained.Because of the system of centrally determined and controlled prices some enterprises were highly profitable while other enterprises were opera

17、ted at a loss. However, the planned losses were almost always automatically covered by a system of subsidies. On the other hand, nearly the entire amount of profit generated by enterprises was withdrawn by the state. As a consequence credits for operating activities were received semi-automatically.

18、The investment in fixed assets was almost fully controlled by the central authorities. The system of subsidies was used as the basic instrument in the financing of the acquisition of fixed assets.Third, the financial statements, as also the complementary statistical statements, fulfilled a dual role

19、 but the roles were contradictory. The financial statements:1、were used as an instrument of control over the fulfillment of the planned targets for the current period;2、provided information serving as a basis for fixing the planned targets for the next period.The inherent contradiction between these

20、 two purposes is clear. If the planned targets were not fulfilled there would be no bonuses for the management of the enterprise and no increase in the funds for the payment of salaries and the provision of other benefits. To avoid the occurrence of such a situation the accounting and statistical da

21、ta became subjected to manipulation.On the other hand, if the actual performance, in comparison with the plan, was high in the current period the enterprise would receive higher planned targets for the following periods. The adverse consequences for the enterprise, in terms of reduced bonuses and re

22、duced entitlement to other benefits, could be substantial. Therefore there was a tendency to disclose only a close fulfillment of the plan in the financial and statistical statements. Again, the financial and statistical data became subjected to manipulation.The effect of the manipulation of the con

23、tent of the accounting records was self-evident. The management of the enterprise could not use the official accounting information. However, realistic data were required by the enterprise management for control and decision making purposes.Enterprise managers created their own personal and private

24、information systems. The situation with respect to auditing, among other things, made possible such a development.Fourth, the accounting data was considered to be secret and the financial statements were not published. There was no system of auditing comparable to the practice established in market

25、economies. Instead, there was only a system of accounting inspection (revise). However, the accounting inspection was not carried out by specialized independent auditors. It was undertaken by the accountants of enterprises in various branches of the economy, or other organizations of control, second

26、ed to some other enterprise for the purpose.The accounting inspection was very superficial. The reason was self-evident: any accountant, making an accounting inspection in some other enterprise, was aware that the accountant of the inspected enterprise at a future data could make an inspection in hi

27、s, or her, enterprise. Therefore, and step by step, accounting inspection degraded to a system of mutual solidarity.BASIC FEATURES OF THE NEW ACCOUNTING SYSTEMAfter a short transitional period (1990-92) a new accounting system was introduced on 1 January 1993. It has been conceived as a system suite

28、d to the market economy. A feature of the new system is that only when subject to transfer from the cost (internal) accounting records to the financial accounting records.As far as the standardization of financial accounting is concerned is concerned the basic structure is as follow:1 The Accounting

29、 Law 1991 established the basic accounting principles. It is foreseen that its amendment will be prepared in1996 or 1997 ( i,e. after having acquired practical experience with the operation of the new system ).2 Three basic charts of accounts have been published. These are intended for:entrepreneurs

30、;non-profit seeking organizations;other organizationgs (e.g political parties, cultural and social movements) not undertaking economic activities.There is a special chart of accounts for banks and insurance companies.3 The obligatory methodology for recording current transactions (i.e arising during

31、 the monthly accounting period) in the financial accounting records (i.e.current accounting) was issued. Current accounting, in Czech terminology, refers to the compilation of the accounting record from the prime entry through to the entries in the ledger accounts. Sometimes alternative accounting t

32、reatments are permitted.4 The system of financial statements was determined. The obligatory structures for the balance sheet and the profit and loss account provide for two situations: the developed or expanded version for small enterprises.5 A new regulation on the contents of the cash flow statement and the appendix to the financial statements has been issued recently. The cash flow statement is based on the standard proposed by the International Accounting Standards Committee (IASC) ( or on the USA SFAS 95 ). That is, taxation and return on capital are not shown as sep