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on Accounting and Auditing |
| By: | Harald Jansen (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg) |
| Abstract: | Besides the importance of tax accounting rules for the corporation’s tax burden, reporting conventions determine the shareholders’ personal tax payments for the dividends received. Taxation may affect investment or financing decisions under different tax accounting and financial reporting rules. There are for example different depreciation schedules or different accruals shifting the tax base over time. Further, capital formation will differ under uniform or separate reporting. Under uncertainty loss offsetting rules are very important for defining a tax base which is neutral according to investment decisions. Constraints for loss offsetting cause tax law asymmetries and may disturb investment decisions. Most tax laws set constraints for loss offsetting when abandoning an investment project. The paper shows for three different reporting conventions that the risk for tax law asymmetries is not the same under these reporting conventions at the time of abandonment. |
| JEL: | G31 G33 H M |
| Date: | 2008–11 |
| URL: | http://d.repec.org/n?u=RePEc:mag:wpaper:08030&r=acc |
| By: | Juan Sole; Alicia Novoa; Jodi Scarlata |
| Abstract: | In light of the uncertainties about valuation highlighted by the 2007-2008 market turbulence, this paper provides an empirical examination of the potential procyclicality that fair value accounting (FVA) could introduce in bank balance sheets. The paper finds that, while weaknesses in the FVA methodology may introduce unintended procyclicality, it is still the preferred framework for financial institutions. It concludes that capital buffers, forward-looking provisioning, and more refined disclosures can mitigate the procyclicality of FVA. Going forward, the valuation approaches for accounting, prudential measures, and risk management need to be reconciled and will require adjustments on the part of all parties. |
| Date: | 2009–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:09/39&r=acc |
| By: | Blechova, Beata; Barteczkova, Ivana |
| Abstract: | In relationship with the changes of tax regulations in surrounding countries and last but not least in connection with the reform of public finances again the question of the further development of the Czech tax system is getting forward. The primary reason for the existence of taxes is fiscal, i.e. to ensure sufficient sources of public budgets for financing public property, however the tax policy must be provided in parallel with measures on the expenditure side of public budgets, that means it is necessary to perceive the tax policy in the context of the whole financial and economic policy of the state. In the sphere of direct taxes the most important external factor is the tax competition between single countries and that is also in the frame of the expanded European Union. The comparison of the income tax of legal entities shows in the last three years unambiguously the decreasing tax burden of firms. However, beside that economic behaviour of companies in connection with positioning their capital abroad reacts on comparability of tax conditions in single countries. Statutory corporate income tax rates are not the right indicator for the comparison of the real economic tax burden of various companies both in the frame of the one state and between the states. That is why for these purposes are used so-called effective corporate income tax rates discussed in this paper, which describes three methodologies for assessing these rates used in the European Union. These methodologies are using either real data from accounting on the national macro level or on the individual company micro level concerning realized entrepreneurial intentions by now or the hypothetical data concerning investments of these companies planed in the future. In conclusion of this paper are presented main differences between these three approaches. |
| Keywords: | Statutory corporate tax rate; effective corporate tax rate; implicit tax rate; macro and micro backward-looking methods; micro forward-looking methods; tax wedge; cost of capital; effective marginal tax rate; effective average tax rate |
| JEL: | H25 |
| Date: | 2008–05–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:12214&r=acc |
| By: | Giandomenico, Rossano |
| Abstract: | The model, by using a contingent claim approach, determines the fair value of the banks liabilities accounting for the protection and the surrender possibility. Furthermore, it determines the implied duration of banks liabilities so to show that the surrender possibility will reduce the effective duration of banks liabilities. Implications for the immunization are also treated. |
| Keywords: | Contingent Claim; Duration |
| JEL: | G13 G21 |
| Date: | 2008–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:14186&r=acc |
| By: | Galimberti, Jaqueson Kingeski; Cupertino, César Medeiros |
| Abstract: | This paper proposes a reassessment to the hypothesis that the persistence of current earnings performance is decreasing in the magnitude of the accrual component of earnings and increasing in the magnitude of the cash flow component of earnings. For this purpose, a threshold autoregressive panel unit root approach is proposed using a Fisher-type. This approach allowed us to distinguish between unconditioned and conditioned measures of persistence, making it possible to infer whether the earnings components condition its persistence. The approach was applied to a sample of 126 Brazilian firms in the period from 1995 to 2007. Our main results are the finding of relevant earnings persistence heterogeneity between the firms in the sample, a relatively lower unconditioned measure of earnings persistence, and a partial rejection of the hypothesis afore mentioned, specifically about the effects of the accruals components over the earnings persistence. |
| Keywords: | earnings persistence; accruals; threshold autoregressions; panel unit root tests |
| JEL: | M41 C23 G10 |
| Date: | 2009–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:14237&r=acc |
| By: | Moritz Bassemir; Holger Daske; Felix F. Fischer |
| Abstract: | Der vorliegende Beitrag untersucht, ob der Mehrheitsaktionar einer Gesellschaft im Vorfeld eines Zwangsausschlusses von Minderheitsaktionären (sog. Squeeze-Out) versucht, die Kapitalmarkterwartungen negativ zu beeinflussen. Ein solches "manipulatives\ Verhalten wird häufig in der juristischen wie betriebswirtschaftlichen Literatur unterstellt, da der Aktienkurs fur die Abfindungshöhe die Wertuntergrenze bildet. Unsere empirische Untersuchung der Bilanz- und Pressemitteilungspolitik von Squeeze-Out-Unternehmen im Vorfeld der Ankundigung einer solchen Maßnahme am deutschen Kapitalmarkt zeigt, dass in diesem Zeitraum tatsächlich ein signifikanter Anstieg (Rückgang)der im Ton pessimistischen (optimistischen) Pressemitteilungen feststellbar ist. Allerdings zeigt sich weiter, dass die Aktien der Squeeze-Out-Kandidaten bereits im Vorfeld und am Tag der Ankündigung so hohe positive Überrenditen erzielen, dass der von uns quantifizierte kumulierte Efekt der Informationspolitik auf die Börsenbewertung einen insgesamt nur sehr geringen Einfluss ausübt und von anderen Faktoren (z.B. Abfindungsspekulationen) dominiert wird. |
| JEL: | M41 M40 G14 K22 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:fra:franaf:200&r=acc |