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Accounting 

Foreign Exchange Gains or Losses in the Financial Statements

The year-end is approaching, which entails financial statements for those companies whose reporting period corresponds to the calendar year. The financial statements involve a number of procedures, referred to as closing operations, including an accurate measurement of assets and liabilities as of the balance sheet date. The accurate measurement of assets and liabilities denominated in a foreign currency also involves their remeasurement as of the balance sheet date. This article aims to summarise basic procedures and draw attention to some remeasurement issues. 

25. 11. 2019
Law 

What Does the RTS on SCA Bring with Regard to Statutory Audits?

Regulatory technical standards for strong customer authentication (the “RTS to SCA”), which entered into force on 14 September 2019, brought about a number of new obligations to payment service providers, including banks and payment institutions. Although the media mention, in particular, new obligations related to the requirements for strong customer authentication, in particular when initiating electronic payments (whether it is card payments in the store, the purchase of goods in an e-shop, entering an order in online banking or other acts), which must newly be a two-factor one (i.e. consisting of a combination of two or more elements from the category of ‘knowledge’, ‘possession’ and ‘inherence’), the above regulation also brings about new obligations of a purely internal nature. Specifically, the obligation to carry out internal audits, namely the audit of security measures (“audit of security measures”) as well as an audit of the way in which the so-called transaction risk analysis (“TRA audit”) is carried out. What are these two types of audits about and what is their substance? 

25. 11. 2019
Tax 

The Supreme Administrative Court ruled on the moment on which an investment is initiated

The Supreme Administrative Court of the Czech Republic issued judgment No. 7 Afs 365/2018-62, which deals with the moment from which an entity is to capitalize the costs of acquisition into the value of the tangible and intangible assets. In terms of allocation of certain costs to the acquisition value of assets, the court held that it was not essential when the tax entity had formally approved the investment to be made but when it had objectively begun to invest even though it was not quite certain at that time that the investment would be completed successfully. 

22. 11. 2019
Tax 

What will 2020 bring in the area of VAT? Quick fixes already in January and a VAT decrease for selected supplies in May

One of the main topics of the traditional autumn seminar on value added tax, which is organised every year by Deloitte, were the new rules in the area of VAT, jointly referred to as “quick fixes”. Their primary purpose is to unify certain rules for cross-border transactions with goods within the European Union. What do they bring, specifically? How can preparations be made for them? 

22. 11. 2019
Technology  Law 

Personal Data Processing News

This time we focus on the most important findings from the published information regarding inspections and decisions of the Office for Personal Data Protection in the first half of 2019. We are also reporting on further development concerning codes of conduct and certifications, on the procedure in the event of a security breach and procedure for informing customers about personal data processing, on an important decision related to cookies, and on an effort to unify the procedure for issuing penalties in Germany, and possibly the whole EU. 

22. 11. 2019