Provable Loss Analysis – Evaluation of Financial Health in Public Transportation from Accounting Viewpoint

Abstract

The submitted paper analyses the financial health evaluation of the public transport company. The main goal of the paper is to analyse determining of the provable loss amount in the public line transport, track-based transport and municipal public transport pursuant to Government Decree No. 493/2004 Sb., Regulation No. 241/2005 Sb. and Regulation No. 296/2010 Sb. and the methods of payment of subsidies in the regional and long-distance transport. Basic characteristics or the explanatory power of individual legal regulations addressing the issue of economically substantiated costs and revenues and the payment of the relevant amount of compensation (subsidy) arising from the basic transport services prove that Regulation No. 296/2010 Sb. promotes higher financial drawing from public budgets for the needs of ensuring basic transport services and for the renewal of the fleet as compared with Government Decree No. 493/2004 Sb. in case of the public line transport and Regulation No. 241/2005 Sb. in case of the public track-based transport. The partial goal of the thesis is to classify the cost and revenue items affecting the amount of the subsidy and to propose effective classification in individual groups of economically substantiated costs on the basis of their explanatory power.