Creative Accounting as an Apparatus for Reporting Profits in Agribusiness

Research background: The bank levy was approved in 2011 and entered into force in 2012. Shortly after the economic crisis, Slovakia was not the only country to introduce it. Unlike other countries, the Slovak government did not have to help banks financially and then compensate for this help by increasing their taxation. The bank levy thus served mainly to improve the overall image of public finances in the country. Purpose of the article: The main goal of the article is to confirm the correctness of the abolition of the bank levy, which has distorted the management of banks in Slovakia for almost a whole decade. The abolition of the levy will contribute to greater stability of the banking sector, which will be helpful in the restart of the Slovak economy affected by the crisis caused by the covid-19 pandemic. Methods: Analysis of the legislation regulating the introduction of a bank levy in Slovakia, its development from the introduction of a bank levy to its abolition. Comparison of the expected benefits of this tool with reality. Findings & Value added: The article monitors the development of bank levies in Slovakia from its introduction to its abolition. The imposition of a bank levy resulted in additional taxation of the banking sector. The difference compared to other taxes was that the amount of the levy does not depend on the bank’s profit, but on the size of its liabilities.

Section: Resultsmentioning

confidence: 99%

Bank levy

Michalíková

2021

“…The investigation of this paper focuses on the earnings management generally, for all sectors. [22] evaluate the financial performance of the enterprises in IT sector under the conditions of globalized world. [23] analyse agriculture, forestry, and fishing sector in Slovakia which is highly affected by earnings manipulation.…”

Section: Discussionmentioning

confidence: 99%

Earnings management: Local or global phenomenon in the Visegrad Four?

Ďurana

Bačík

2021

Self Cite

Research background: Increasing number of national scientific studies related to business finance shows that the earnings management phenomenon as a legal apparatus of manipulation business profit plays a significant role in financial reports in conditions of Slovak economy. Slovakia belongs to Visegrad Four, group of very historically and developmentally close countries. That is why it is relevant to compare the issue of earnings manipulation it these countries’ context. Purpose of the article: The main purpose of the article is to confirm global approach to manipulation of earnings in the Visegrad Four’s enterprises and justify that managers incline to earnings management systematically in all analysed group not only at a local level in chosen country. Methods: This econometric investigation used the observations of earnings before interest, taxes, depreciation and amortization of 1,058 Slovak enterprises, 688 Czech enterprises, 1,376 Polish enterprises and 731 Hungarian enterprises. It was investigated nine-years period from 2010 to 2018. Non-parametric time series trend modelling was run by Mann-Kendall test and estimation of the slope of the trend by Sen’s method used a linear model. Findings & Value added: The article focused on nine-years development of earnings before interest, taxes, depreciation and amortization in the Visegrad Four’s enterprises. It was found out the systematic trend manipulation in all analysed countries. This fact highlighted that earnings management is not local phenomenon, but its development is globally preferred tool of business finance.

“…The transfer pricing is becoming a topical issue not only globally, but also in the conditions of the Slovak Republic, where more and more international companies are starting to operate. However, we must not forget that this issue concerns not only multinational corporations, but also companies that operate at national level and meet the conditions of related companies [23]. However, it should be emphasized that no law explicitly forbit entrepreneurs from setting prices with related entities above or below market values.…”

Section: Discussionmentioning

confidence: 99%

Is the legislation important in the context of transfer pricing?

Zvaríková

Kovalová

2021

Research background: The continuing trend of globalization and interconnection of national economics is reviling many opportunities as well as threats arising from this development. The transfer pricing is one of these issues as a legal framework to adjust the tax base. But on the other hand, this issue also affects other important areas and reveals its risks. There is focused on the transfer pricing and its legal framework in these presented papers as recent years have indicated that there is a huge necessity to regulate and legislatively define the transfer pricing on the part of the state. And although we can take the opinion that this is a modern issue, we have been encountering this problem since 1915 and since this time it is gaining in its importance. Purpose of the article: We can distinguish two different parties. On the one hand, there is a company (most of the time its multinational company) with its goal to achieve the best possible efficiency also by paying the lowest possible taxes. On the other hand, we recognize the state with his aim of optimal tax policy allowing it to maximize the amount of collected taxes, i. e. it should be in the best interest of the state to define the transfer pricing precisely to prevent possible tax evasion. Methods: The main method used in the article is literature research and analysis of the law documents. Findings & Value added: The aim of this article is to identify the basic legislative guidelines in the field of transfer pricing in the international level as well as in the level of the Slovak republic.