An error in a financial statement may happen to any business unit. Often, errors will be revealed after the statement has been signed or even approved. According to the National Accounting Standard No. 7, all business entities are obliged to correct any error that has been revealed, regardless whether such errors pertain to the current trading year, or previous years.
Business activity is continuously connected with foreseeing the future. It is exactly the future, and not the present conditions that decides about success of any enterprise. Whether the enterprise will turn out to be profitable and succeed on the market will result from its ability to foresee prevailing conditions on a widely understood market in the following years. What growth rate will be like, whether the branch of our interest will have to face aggressive competition, how consumer tastes and attitudes will change, in what legal environment we will have to function? Such questions can be multiplied endlessly. What therefore can we do to improve the quality of formulated economic forecasts, and, at the same time, to increase chances of achieving goals established before we start a business venture?
This time, I would like to write a few words about fees that can be frequently encountered in hotel services branch. I mean fees connected with cancelling or “no show” and their calculation on the ground of value added tax (hereinafter referred to as VAT). I would like to draw your attention particularly to the so-called attrition fee, which is a fee for rooms that are booked but eventually not used.
Since I started providing transaction services, in other words advising Clients in purchase and sales transactions as well as enterprise mergers and acquisitions, one question has been constantly on my mind: what is truly an advisor’s role in a transaction? What is my role and what is the role of the other party’s advisor? The answer is pretty clear if a Client commissions RSM to sell their company or to buy one – in such situation, our role is limited to negotiating best price and securing the Client’s interests in agreements. All the actions taken are to satisfy the highest imperative goal „I want to sell” or „ I want to buy”. However, sometimes the imperative “I want to sell/buy” is not as strong as the mentioned “want”. We often hear our Clients saying “I could” and not “I must”, “I would like” and not “I want to”.
As it usually happens with changes introduced into the tax law, on the quiet and through the back door a significant change is made as for the moment of including the effects of the issued (or received) invoice correction in corporate income tax/personal income tax calculation. Why is this moment so crucial?
Introduction of International Auditing Standards (hereinafter: ISAs) in Poland offers a huge opportunity of improving the quality of audit services, and thereby the quality of financial statements themselves for the benefit of all interested parties (management boards, shareholders, prospective investors and statutory auditors).
In today’s post I would like to share my impressions from a meeting with representatives of A+network Association, in which I participated on 17 April this year in Bologna. The meeting was devoted to Poland and opportunities the country gives to foreign investors, in particular to Italian businesspeople.
Undoubtedly, management of each related entity has to answer a question of whether to prepare tax documentation or choose to rely on luck instead, and a chance of not being summoned by the tax office to submit it. Or, if you have already decided to prepare the documentation, when to do it – during the tax year or after it finishes?
Currently, almost each and every income tax control requires submitting TP documentation. One of the most committed errors between 1 January 2013 and 1 July 2014, in the case of reduction of tax liabilities exceeding PLN 1,000, was lack of TP documentation[1]. This year, tax documentation will also constitute one of tax control priorities (vide The National Action Plan of Tax Administration for 2015).
When planning an enterprise purchase or sale transaction, each of the parties is interested to know how much this enterprise is worth. If both the buyer and the seller are determined to conclude the agreement and their relations are based on mutual trust, they often decide to carry out only one valuation and entrust its preparation to an external and independent consultant. The outcome of such valuation is usually a single value, achieved according to the fair value measurement standard.
A consistent opinion on the value of an enterprise leaves no room for negotiation between the parties to the transaction, which definitely hinders a successful closure of the transaction.
What really causes that contemporary market for corporate control is so active and abounds in numerous M&A transactions?
Nobody will deny that the history of Poland and Germany was very turbulent. It’s a bit similar to the situation of a typical married couple – there were moments of very harmonious cooperation but (sometimes long-lasting) silent days as well… Over the years, on both banks of the Oder we have gathered a number of stereotypes about each other. We are slowly trying to defy them – the most effective way is to do business together.
