Boleslawiec and false conclusion

For those of my (Andrew Kinast wrote) readers who have lived as expatriates for any length of time in Poland Bolesławiec (or Bolly) was a must buy. For those who have not come across this necessity of ex pat life Bolesławiec is pottery decorated in characteristic pseudo peasant motifs manufactured in South- Western Poland. I know as I have a kitchen full of this stuff and very good it is too!!

The fact is that many/ most ex pats have moved on, most taking their collection of Bolly with them. The scenario of course is that following a natural calamity which wipes out most of life on earth future archeologists will dig up shards of Bolly in towns from New York to New Delhi and come to the completely wrong conclusion that at the turn of the 20th and 21st Centuries a tribe centered on Warsaw began a process of colonising the earth with the sole evidence being the remains of Bolly shops in Warsaw.

Actually there is a second point to the story. This very traditional Polish pottery is in fact manufactured in what was Germany before 1945 and the pottery is still to this day exported to Austria and Germany under the old name Bunzlau. Oh and one of the major distributors in Warsaw is a shop in Wilanów owned by a Korean lady! Quote my name and you may get a discount.

The real point I am trying to make is that causality is a very dangerous beast. The old joke about the 100% correlation between paper tissues and colds proving that using tissues causes colds is an extreme example of jumping to wrong conclusions.

A more tenable causality is human activity and global warming. Don’t get me wrong, I firmly believe we should not squander natural resources and in particular energy. But look at the evidence. At one stage in the dim and distant past Poland was a major producer of wine (from grapes and not mouldy strawberries!) whilst in Jacobean times the Thames regularly froze over to the extent that fairs were held on the ice. So human action could be one of the factors in the current weather pattern changes but not the only one.

So why are EU manufacturers penalised with carbon taxes whilst the US and China just pays lip service?

And on the NIMBY (not in my back yard) principle I would far rather have a shale gas fracking tower next door than swishing windmills. Oh and guess how long it takes on average for a windmill to negate the carbon dioxide emitted during its manufacture. Yes 17 years!!! And why are power generators in favour of ever more energy saving building material legislation? Yes that’s right as the extra energy needed to manufacture triple glazing is far higher than the energy saving in the foreseable future. And have a look at Jeremy Clarkson’s expose of the energy wasted in manufacturing the Toyota Prius.

A bit of healthy questioning of motives never goes amiss.

Make business and grow (in Poland). From the accounting point of view

In Poland the accounting principles and audit requirements are set out in the Law on Accounting.

The above regulations do not differ considerably from International Financial Reporting Standards (IFRS) and in the situations not regulated by the Law these standards can be applied. Moreover, entities as well as subsidiaries of entities quoted on a recognised EU stock exchange can prepare their financial statements in accordance with IFRS.

Statutory financial statements consist of: a balance sheet, profit and loss account, additional information, comprising of an introduction to the financial statements and additional information and explanations. Entities subject to obligatory audit are also required to prepare a statement of changes in equity (own funds) and cash flow statements.

The financial statements for the year must be accompanied by a management report on activity.

The accounting records, the financial statements and the management report must be prepared in Polish and in the Polish currency.

The financial statements should be prepared within 3 months from the balance sheet date and signed by all the members of the Management Board and the person in charge of maintaining the accounting records. The financial statements must be approved by an authorised body (usually the Annual General Meeting of Shareholders) not later than 6 months from the balance sheet date.

Within 15 days from the approval of the annual financial statements, the Management Board is obliged to present the documents for court registration purposes, together with an auditor’s opinion (if the requirement of an obligatory audit is applicable), a copy of the shareholders’ resolution approving the financial statements and resolving on allocation of profits/ loss coverage, and the management report on activity.

The approved annual financial statements must be kept in the archives permanently, whereas the accounting records, inventory documentation and other source documents must be stored for 5 years.

Audit Requirements

Annual financial statements of banks, insurance agencies, investment and pension funds and joint stock companies are subject to an obligatory audit and must be published.

The audit requirement also applies to the financial statements of other entities where in the year preceding the reporting year to which the financial statements relate, two of the following three conditions are met:

a) mid year employment level of 50 or more,

b) balance sheet totals of assets and liabilities as at the year-end were at least EUR 2,5 million,

c) turnover net of VAT (revenues from sales of goods and products and financial operations) exceeding EUR 5 million.