Until 30 June 2020, medium and large enterprises could apply for subsidies to compensate for increasing energy prices. This assistance was granted to taxpayers upon request, and subsidies were handed out by the Price Difference Fund from the state budget. The entrepreneurs who have received subsidies are now in for a nasty surprise. Most likely, they will have to account for the assistance they were given.
When complex manufacturing processes make cost accounting insufficient as a source of information for decision making purposes, it is a good idea to opt for activity based costing (ABC). This concept is more than just calculating a unit cost; it is about monitoring the costs of processes and activities in an organisation.
From the investors’ perspective, startups mean high risk and low liquidity. As a result, startup valuation is quite a challenge.
In the previous article, I focused on asset measurement at fair value in the times of economic recession, uncertain future of companies and limited information exchange in the context of IFRS 13 assumptions. What about the measurement of assets to which IFRS 13 does not apply? Contrary to what you may think, there are quite a few of them.
On 13 July 2018, the Act of 1 March 2018 on Countering Money Laundering and Terrorist Financing (Journal of Laws of 2018, item. 723, hereinafter referred to as “the Act”) entered into force in Poland. The goal behind this regulation was the complete and correct transposition of Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing. Certain provisions of the Act entered into force only after 18 months from the date of its announcement, i.e. 13 October 2019, and materially affected the operation of many businesses.
We have recently written a lot about financial instruments: their definition, classification, measurement, impairment, etc. Since all this remains relevant and topical, we will soon be publishing a Q&A with the most frequently asked questions and explain the different aspects of financial instruments that keep baffling our readers.
Today, however, partly due to functioning in a state of epidemic and partly because I want to continue with the topic of impairment of assets (receivables), I decided to focus on the measurement of balance sheet items at fair value.
We discussed tax residency in the first article on employee relocation. Now it is time to have a look at another important aspect: the method of taxation of paid work according to international agreements. These agreements are aimed at preventing double taxation of the same income, i.e. ensuring, among others, that the income from work performed abroad will not be taxed in two countries (i.e. in the source country and the country of residence).
Takeovers, due to the government’s draft amendment to the act on controlling certain investments, is again hitting the front pages. In a nutshell, it will be up to the Chairman of the Office of Competition and Consumer Protection to decide if the transaction may be carried out. This restriction concerns investors from outside the European Union and the European Economic Area. Reading between the lines, amid the current recession caused by SARS-COV-2 such regulations are mainly to stop the inflow of capital from Asia. However, frankly speaking, this will also affect other important investors, including those from the US or even those more “European” ones, from the UK.
The consequences of economic development include investments of foreign entities in Poland as well as investments of Polish entrepreneurs abroad. Many foreign companies benefit from the abundant resources of well-educated and experienced Polish specialists, whereas Polish investors seek employees with adequate qualifications on foreign markets. As a result, the number of Polish employees employed in foreign entities, as well as foreign employees employed in Polish companies, is growing significantly. Specialists can provide their services from any place in the world (working remotely), often on the territory of more than one country.
Coming back to the topic of financial instruments, I present below – in the form of questions and replies – a set of crucial related issues.
