WHAT DO PD (A BUSINESS ACTIVITIES REPORT) AND GFI (AN ANNUAL FINANCIAL REPORT) STAND FOR AND WHICH REPORTS A COMPANY NEEDS TO SUBMIT?
Being a responsible subject in a company means holding a lot of responsibilities when it comes to reports that should be submitted to relevant institutions.
The reports that will be dealt with further in the text refer to, as accountants like to call them, annual financial reports, that is, reports that are made once a year and cover the calendar period of one year (1.1. -31.12).
These reports are made with the purpose to make a profile of business activities on a certain date and determine tax dues on a generated profit. Of course, this is not the only reason, but certainly the most important one as far as relevant institutions are concerned.
The other reason is somewhat a report like as it provides the owner and other interested parties an insight into business results as well as a relevant basis for making business decisions. Of course, when it comes to smaller scale entrepreneurship, entrepreneurs tend to follow their business activities in a different manner than it is done by big companies or corporations. While the letter utilizes a developed system of keeping track and reporting on every aspect of business activities, smaller scale entrepreneurs rely in most cases on the amount of money they have on the account and how much money is “out there“ with their buyers.
The third reason is a statistical one and is used at some institutions in order to follow trends in the economy and then trading with the received information by providing them to credit houses and banks who later on come up with products based on this information.
Profit taxpayers have an obligation to file a tax return at a tax administration office until 30/4 in a current year for the previous year with attached documentation which usually consists of a gross balance sheet, POD-RDG (Profit and Loss Account Report) and POD-BIL forms (Balance Sheet Report), various statements, agreements etc. A thing newly introduced in 2017 is a PD-IPO form (Report on Business Activities with Connected Parties) which has to be submitted by anyone having transactions with connected companies (sales, purchase, giving or receiving loans).
The other report is an Annual Financial Report (AFR/in Croatian GFI) and it is submitted for statistical reasons (until 30/4) or for the purpose of publicizing it for a Financial Agency. The thing commonly done is to submit the report once for both purposes and save time in that way. Attachments to the report are notes, Decision on Determining Annual Financial Report and the Decision on the Distribution of Profit or Covering Loss.
The fact is that both reports are very similar and the question is brought up why institutions do not enable sending only one report to a central register from which the information can then be distributed further?
As in most cases, 99% of work regarding the above activities will be done by your accountant, but it is good to know whom and why these reports are to be submitted to.
For those who wish to know more or have further questions do not hesitate to contact us at [email protected].
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