nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2009‒05‒16
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Place Where the Supply/Activity is Effectively Carried Out as an Allocation Rule: VAT vs. Direct Taxation By Rita de la Feria
  2. Economic Loan Loss Provision and Expected Loss By Stefan Hlawatsch; Sebastian Ostrowski
  3. Intangible assets and competitiveness in Spain: an approach based on trademark registration data in Catalonia (1850-1946) By Sáiz, J. Patricio; Fernández, Paloma
  4. Beyond the information technology agreement : harmonization of standards and trade in electronics By Portugal-Perez, Alberto; Reyes, Jose-Daniel; Wilson, John S.
  5. Taxation trends in the European Union: 2008 edition By Florian Woehlbier; Marco Fantini; Beata Heimann; Gaetan Nicodeme; Katri Kosonen; Werner Vanborren; Milan Pein; Stefanie Knoth; Federico Martire; Alessandro Lupi; Monika Wozowczyk; John Verrinder; Anne Paternoster

  1. By: Rita de la Feria (University of Oxford Centre for Business Taxation)
    Abstract: The aim of this paper is to establish whether VAT place of supply rules are more effective allocation rules than international tax rules currently governing income taxation. This is done through the analysis of the “place where the activity is effectively carried out” (PWAECO) and the “place where the supply is effectively carried out” (PWSECO) as allocation rules. The paper discusses allocation rules applicable to (corporate) income under international taxation provisions, analysing its limitations and weaknesses, as well as some of the proposed solutions. The attention then shifts to VAT. The place of supply rules under European VAT will be assessed, in particular the role of the PWSECO rule therein; similarly to the approach taken income international tax rules, an analysis of the limitations and weaknesses of the place of supply system within European VAT will then be undertaken. The paper concludes with considerations on whether VAT rules for allocation of taxing rights are more effective than direct taxation’s allocation rules, or whether VAT offers a false promise, further highlighting that in tax – as in life – the grass always seems greener on the other side.
    Date: 2009
  2. By: Stefan Hlawatsch (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg); Sebastian Ostrowski (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)
    Abstract: The intention of a loss provision is the anticipation of credit's expected losses by adjusting the book values of the credits. Furthermore, this loan loss provision has to be compared to the expected loss according to Basel II and if necessary, equity has to be adjusted. This however assumes that the loan loss provision and the expected loss are comparable, which is only valid conditionally in current loan loss provisioning methods according to IAS. The provisioning and accounting model developed in this paper overcomes the before mentioned shortcomings and is consistent with an economic rationale of expected losses. We introduce a de¯nition of expected loss referring to the whole maturity of the loan and show that this measure can be reasonably compared with loan loss provisions. Additionally, this model is based on a close-to-market valuation of the loan. Suggestions for changes in current accounting and capital requirement rules are provided.
    Keywords: loan loss provision, expected loss, IAS, Basel II
    JEL: G18 G21 M41
    Date: 2009–04
  3. By: Sáiz, J. Patricio (Universidad Autónoma de Madrid); Fernández, Paloma (Universidad de Barcelona)
    Abstract: This paper studies the origins of trademark registration in Spain and offers, for the first time, data across sectors and regions with a long-term perspective. In apparent contradiction to the slow path of industrialization and the economic backwardness of Spain between 1850 and the 1940s, empirical evidence on trademark registration suggests that, in this field, Spanish policies and Spanish firms seemed to be well ahead of other countries. Spain was among the pioneering countries in the Western world in having a state legislation protecting brand registration since 1850. Also, some Spanish regions and industrialized sectors adopted similar strategies to those of its European counterparts in terms of using consistently branding and registered trademarks. Our evidence suggests that firms seem to have used brands and marks, first to fight against fraud and imitation and second to add intangible assets to its products in order to endow them with persistent identity trends regarding origins or quality of the product that were difficult to replicate, as often happened with patents. This created and accumulated, over that period of time, a marketing knowledge among consumers, which may have been useful to maintain the competitiveness of some industrial districts and regions.
    Keywords: Intangible assets; Trade Marks; Brands; Catalonia, Spain.
    JEL: N80 N83 N84 M31 M37
    Date: 2009–05
  4. By: Portugal-Perez, Alberto; Reyes, Jose-Daniel; Wilson, John S.
    Abstract: Product standards can have a dual impact on production and trade costs. Standards may impose additional costs on exporters as it may be necessary to adapt products for specific markets (cost-effect). In contrast, standards can reduce exporters'information costs if they convey information on industrial requirements or consumer tastes that would be costly to collect in the absence of standards (informational-effect). Using a new World Bank database of European standards for electronic products, the authors examine the impact of internationally-harmonized European standards on European Union imports. They find that European Union standards for electronic products that are harmonized to international standards have a positive and significant effect on trade. The results suggest that efforts to promote trade in electronic products could be complemented by steps to promote standards harmonization. This might include, for example, re-starting talks to extend the Information Technology Agreement to non-tariff measures and commitments to harmonize national standards in electronic products.
    Keywords: Information Security&Privacy,Technology Industry,Scientific Research&Science Parks,Science Education,Labor Policies
    Date: 2009–04–01
  5. By: Florian Woehlbier; Marco Fantini (European Commission; European Commission); Beata Heimann (European Commission); Gaetan Nicodeme (European Commission); Katri Kosonen (European Commission); Werner Vanborren (European Commission); Milan Pein (European Commission); Stefanie Knoth; Federico Martire; Alessandro Lupi (European Commission); Monika Wozowczyk (European Commission); John Verrinder (European Commission); Anne Paternoster (European Commission)
    Abstract: Taxation trends in the European Union: 2008 covers the development of taxation in all 27 Members of the European Union and Norway in a comparable format since 1995. The report is organised as follows: Part I offers an overview of taxation in Europe, describing the trends in the total tax ratio, the structure of revenues by tax type, the distribution of revenues amongst government levels, and the main developments in the rates of the personal and corporate income tax. Part II focuses on taxation of consumption, labour, and capital, as well as on environmental taxation. Part III consists of 28 Country Chapters illustrating, for each Member State (and Norway), the revenue trends and supplying a summary description of the tax system. This chapter outlines the main results from Parts I and II.
    Keywords: European Union, taxation
    JEL: H23 H24 H25 H27 H71
    Date: 2008–04

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