nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2007‒05‒19
four papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Accounting Regulation in the UK: One nation, Two sectors By Hodges, Ron; Mellett, Howard
  2. Audit Coordinates in Financial-Banking Marketing - Evidence from Romania By Dura, Codruta; Driga, Imola
  3. Institutions in Transition: Legitimisation and Cognition in the Educational Field By Ezzamel, Mahmoud Azmy; Robson, Keith; Edwards, Pam
  4. Measurement of capital stock and input services of Spanish banks By Alfredo Martín-Oliver; Vicente Salas-Fumás; Jesús Saurina

  1. By: Hodges, Ron; Mellett, Howard (Cardiff Business School)
    Abstract: This paper draws on the work of Streeck and Schmitter (1985) and its subsequent use by Puxty, et al (1987) to analyse the development of accounting regulation in the U.K. public sector. It provides an extension to prior literature through the application of a framework, based on modes of social order, to investigate divergence in the approaches to accounting regulation between the public and private sectors within a single nation state. Despite the advent of 'New Public Management', a different balance of the principles of regulation was established and continues to exist in the public sector when compared with that applied in the private sector, reflected by their respective approaches to due process. The conclusion is that the UK public sector accounting regulatory structure remains rooted in the state mode of social order and hence is different from that found in the private sector, despite the rhetoric of modernisation through the adoption of private sector management practices.
    Keywords: accounting standard setting; public sector; due process; modes of social order
    Date: 2006–01
  2. By: Dura, Codruta; Driga, Imola
    Abstract: The general term of internal audit was established in relation to the financial accounting activity; this notion was gradually replaced by a new approach which expands the sphere of the audit so that the preoccupation for the future is very important for any audit activity. If forming and consolidating a favorable image of the bank among service consumers represents a marketing problem, then solving it requires numerous instruments from the marketing policies; the most important role is attributed to the audit. The final goal of the marketing audit is drawing up a table regarding the performances and the efficiency of the bank, in relation to the risks involved by financial institutions and its operations. In this respect, specialists in banking management have come up with different models of calculations and rating systems in their trials to obtain the most accurate scan of the “state of health” of the banks, and moreover in their trials to identify the institutions which face financial and operational difficulties leading to bankruptcy. The uniform bank rating system is a specific instrument for the supervising activity and has its origins in the USA ; it has later been borrowed by German, Italian, Great Britain authorities, which use influential components in their banking system; later on, their system was adopted by most central banks within the European Union. In Romania, the uniform bank rating system has been implemented by N.B.R. (the National Bank of Romania) since 2000; the specific components that were analyzed are: the capital adequacy (C), the quality of assets (A), the management (M), profitability (P), liquidities (L) and sensitivity (S) starting from the year 2005. For short, this system is called CAMPL. The evaluation of these specific elements represents an important criterion for establishing a compound rating, which means assigning scores to each bank. The compound rating for the banking system is established based on economic – financial indicators and prudence indicators.
    Keywords: marketing audit; uniform bank rating system; the capital adequacy; the quality of assets ; sensitivity to market risk
    JEL: M31 E58 A10
    Date: 2007–04–17
  3. By: Ezzamel, Mahmoud Azmy (Cardiff Business School); Robson, Keith (Cardiff Business School); Edwards, Pam
    Abstract: The purpose of this paper is to examine the consequences of accounting intervention into institutionalized organizations in transition. The context for the study was the implementation of the 1988 Education Reform Act in England and Wales, known as the Local Management of Schools (LMS) Initiative, which devolved budgets from Local Education Authorities (LEAs) to individual schools. We develop the argument that the emergence of new accounting practices in institutions and the accompanying process of re-institutionalization is not inconsequential, but detail rather the accounting's re-presentation of teachers as costs does accompany a re-distribution of the authority and resources in schools and LEAs, thus implying that administrative changes and organizational actions are not decoupled. Our case study of institutional change focuses as an illustration on the example of school 'carry forwards' (budget under-spends) as we analyze the ability of accounting practices to influence legitimacy and cognition by stimulating new debates, according them increased visibility and endowing them with significance. We assess the contribution of our study to the further development of neo-institutionalist theory; in particular, we consider the new problems of cognitive legitimacy that arose between LEAs and schools, and examine their implications for institutionalized organizations.
    Keywords: neo-institutional theory; legitimation; cognition; educational field; budgeting
    Date: 2005–11
  4. By: Alfredo Martín-Oliver (Banco de España); Vicente Salas-Fumás (Banco de España; Universidad de Zaragoza); Jesús Saurina (Banco de España)
    Abstract: This paper contains estimates of physical and intangible (information technology, advertising and training) capital stock, together with capital, labor and externally provided input services, of Spanish commercial and saving banks in the period 1983 to 2003. Capital stocks are valued at replacement costs and assets’ services flows are computed using estimates of the risk-adjusted user cost of capital. Replacement costs of assets are substantially higher than book values and economic estimates of costs of input services allow for more accurate measures of efficiency and productivity of banks.
    Keywords: Spanish banks, intangible assets, cost of capital services
    JEL: G21 G31 M41
    Date: 2007–05

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