nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2006‒09‒23
four papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Projections of Pension Fund Solvency under Alternative Accounting Regimes By Andreev, Andriy; Sjöholm, Hans-Kristian
  2. Mandatory audit firm rotation in Spain: a policy that was never applied By MARIA NIEVES CARRERA
  3. Financial system structure in Colombia : a proposal for a reform agenda By De la Cruz, Javier; Stephanou, Constantinos
  4. Better policy analysis with better data. Constructing a Social Accounting Matrix from the European System of National Accounts. By Susana Santos

  1. By: Andreev, Andriy (Swedish School of Economics and Business Administration); Sjöholm, Hans-Kristian (Swedish School of Economics and Business Administration)
    Abstract: This paper examines the impact of three alternative accounting regimes on perceived pension fund solvency. Deterministic accounting assumes actuarially smoothed valuation of assets and liabilities. National accounting is based on market valuation of assets and on actuarial valuation of liabilities. International accounting books assets and liabilities to market values. Using closed-form methods based on the funding ratio return, we exemplify the dramatic effect that the choice of accounting approach has on long-horizon solvency projections.
    Keywords: pension fund; solvency; long-horizon return; asset liability management; accounting standards
    Date: 2006–09–13
  2. By: MARIA NIEVES CARRERA (Instituto de Empresa)
    Abstract: In recent international debates on auditing regulation, Spain has assumed a real prominence as a claimed practical example of where a policy of mandatory audit firm rotation did not work and was duly abolished. This study provides an analysis of the implementation and removal of such policy in Spain. Using the evidence provided by congressional hearings, financial newspapers and other documents we demonstrate that at no stage was mandatory rotation of audit firms ever enforced on Spanish auditors.
    Keywords: Auditing regulation, Auditor independence, Mandatory audit firm rotation
    Date: 2006–05
  3. By: De la Cruz, Javier; Stephanou, Constantinos
    Abstract: The objective of this policy paper is to identify and propose high-level legal and regulatory reforms to Colombia ' s financial system structure that would enhance efficiency and/or mitigate risks. Five specific and four general reforms are proposed and evaluated based on their compatibility with the aforementioned objectives, ease of implementation, impact, and consistency with international practice. Potential implications for supervision and competition, as well as likely criteria for developing a carefully sequenced reform roadmap, are also highlighted.
    Keywords: Banks & Banking Reform,Financial Intermediation,Corporate Law,Non Bank Financial Institutions,Financial Crisis Management & Restructuring
    Date: 2006–09–01
  4. By: Susana Santos
    Abstract: This paper will discuss the importance of the SAM (Social Accounting Matrix) as a consistent and flexible database for economic modelling to be used for the purpose of ensuring a better policy analysis. It will be shown how the SAM represents the circular flow of income and how it can support disaggregated economy-wide modelling. It will further be demonstrated how a SAM can be constructed from the SNA 93 (1993 version of the United Nations System of National Accounts) in an ESA 95 framework (European System of National and Regional Accounts in the European Community of 1995), and, using an example for Portugal, how it can be implemented in the European Union.
    Keywords: Social Accounting Matrix; National Accounts; Economic Modelling
    JEL: C82 E61 C68

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