Company Profit Policy

Deepening knowledge and acquiring skills to apply them in the process of creating and implementing company profit policies, all in order to understand the alternative solutions in the field of financial policy. Managing the effects of those decisions, with particular emphasis on the recognition and use of accounting and financial techniques for the purpose of selection of optimal solutions.

Subject content is focused on the efficient preparation of students for the adoption and application of knowledge about the importance, role and content of the profit policy as part of the financial decision-making in the company. Special attention is paid to contemporary specificities and challenges, in terms of influence of the profits distribution policy on the selection of the optimal solution, which leads to the achievement of the target profit as the ultimate outcome of decision-making.

Concepts of the company's profit. Place, role and content of the company profit policy. Theories about the company's cost of capital as the foundation of the profit policy. Policy of the company's target profit – formulation, problems and implications. Policy of the company's profit distribution - dividend policy and policy of reserves. Contemporary accounting challenges of the company profit policy. The place of profit in the accounting information system - state and prospects. Accounting cautiousness as a challenge of the policy of profit showing and distribution in uncertain conditions. Specific accounting challenges in the area of profit distribution.

Forms of teaching are lectures, independent papers under the mentorship of professor, regular consultations and e- consultations, discussions of practical cases. A clearly structured teaching provides the advantage to teaching methods, with emphasized joint work and communication.

Study research pre-exam paper and taking final oral exam.

Malinić, D. (2007). Profit policy of corporate enterprise. Belgrade: Faculty of Economics Van Horne, J.C. (1993). Financial Management and Policy (Financial Management). translation, Zagreb: Mate