nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2009‒07‒11
seven papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Accounting Monograph on the Accounting for the Movement of Timber to Forest Exploitation Companies By Ecobici, Nicolae; Busan, Gabriela
  2. Intangible assets and national income accounting: measuring a scientific revolution By Leonard I. Nakamura
  3. Identifying Corporate Expenditures on Intangibles Using GAAP By L. C. Hunter; Elizabeth Webster; Anne Wyatt
  4. Reverse Charging Purchases to Intra-transportation Means in the Context of New Tax Regulations By Ecobici, Nicolae; Busan, Gabriela
  5. The role of external auditors in corporate governance: agency problems and the management of risk By Ojo, Marianne
  6. Modeling Distortionary Taxation By Chronis Panagiotis
  7. Innovation, Tangible and Intangible Investments and the Value of Spanish Firms By Aitor Lacuesta; Omar Licandro; Teresa Molina; Luis A. Puch

  1. By: Ecobici, Nicolae; Busan, Gabriela
    Abstract: The paper deals with practical aspects on how to point out in the economic units accounting the operations generated by exploitation, processing, storage and marketing of timber. In this approach, we have initially presented the legal provisions in force since 1 October 2008 in the exploitation of timber and we concluded with an accounting monograph of the main operations regarding its exploitation, processing and marketing. The paper also presents the simplification measures (reverse charge) applied in compliance with the Tax Code provisions on marketing of timber.
    Keywords: timber; SUMAL (Timber Movement Tracking System); shipment slip; forest fund; reverse charge
    JEL: M41
    Date: 2009–01–08
  2. By: Leonard I. Nakamura
    Abstract: In this paper the author relates the measurement of intangibles to the project of measuring the sources of growth. He focuses on three related and difficult areas of the measurement of national income: the measurement of new goods, the deflation of intangible investment, and the divergence between the social and private valuations of intangible assets. The author argues that the economic theory and practice underlying measurement of these items is currently controversial and incomplete, and he points toward how concretely to move forward.
    Date: 2009
  3. By: L. C. Hunter (Intellectual Property Research Institute of Australia, The University of Melbourne and School of Business and Management, University of Glasgow); Elizabeth Webster (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne); Anne Wyatt (UQ Business School, University of Queensland)
    Abstract: This paper aims to show how firms account for expenditure on their intangible investments and how this influences their decision making processes. Evidence from our survey of 614 large Australian companies show that (1) firms do not systematically identify and separate expenditures on intangible investment from expenditures on tangible investment and operating expenditures; and (2) this leads to an information gap that adversely affects the firm’s internal processes for evaluating the decision to invest in intangibles. The paper builds a deductive argument for the use of the general purpose financial reporting system (GAAP) to separate and report the expenditures on intangibles by corporations in a way that is consistent and comparable across firms and over time. Our evidence suggests that investment decisions by management and investors, where intangibles are involved, are likely to be based more on rules-of-thumb than objective evidence.
    Keywords: managerial accounting system; GAAP accounting system; expenditures on intangible investment, rate of return
    Date: 2009–05
  4. By: Ecobici, Nicolae; Busan, Gabriela
    Abstract: New tax rules with effect from 1 May 2009 with a series of changes on the tax deductibility of the value added acquisitions related to transport and fuel use. The measure is very obvious nature of politics in order to bring the state budget amounts as required under the current government crisis in the financial world. The book focuses on not commenting policy modifications as required on the implications that they bring in on the accounting chargeback. Therefore, in the paper we will address the resolution of these legal provisions in the economic accounts.
    Keywords: reverse charging; intra-transportation means; new tax regulations; the accounting chargeback; transport and fuel use; deductibility
    JEL: E62 H8 M41
    Date: 2009–04–26
  5. By: Ojo, Marianne
    Abstract: This paper not only recommends means whereby principal-agent problems could be addressed, but also considers various ways in which the external auditor and audit committees contribute as corporate governance tools. The impact of bank regulations on risk taking and the need for a consideration of ownership structures are amongst other issues which are considered. In acknowledging the issues raised by ownership structures, it considers theories such as the banking theory and corporate governance theory. It also considers other alternatives whereby risk taking could be controlled. In recommending the external auditor’s expertise to address principal agent problems, it draws attention to the audit committee’s roles, both as a vital and complementary corporate governance tool, and also considers recurring problems which still persist with some financial reporting standards. It also highlights the importance of measures which need to be in place if the external auditor’s contribution to corporate governance is to be maximised.
    Keywords: agency; theory; external; auditor; banking; regulation; risk
    JEL: K2 D21 G3 G0 A10 M4
    Date: 2009–07–06
  6. By: Chronis Panagiotis (Bank of greece)
    Abstract: There has been a lot of discussion recently regarding the macroeconomic consequences of a distortionary taxation system. However the way this distortionary taxation scheme or instrument is modeled in macroeconomic analysis, as well as the ability of these models to capture the effects implied by this distortionary taxation system, is subject to criticism. This work provide a formal analysis in an attempt to build a methodological tool (i.e. a functional form), in order to capture the distortionary consequences of the tax system. This tool could be useful instrument in economic analysis regarding the effects of a distortionary taxation system, and its relation to the other macroeconomic variables, like for example dept, deficit, and inflation.
    Keywords: Distortionary Taxation; Income Tax; Tax Revenue; Tax evasion; Tax Compliance; Dynamic path of debt
    JEL: C00 H30 H20 H26 H24 H60 E62 B41
    Date: 2009–03
  7. By: Aitor Lacuesta; Omar Licandro; Teresa Molina; Luis A. Puch
    Abstract: Why is R&D spending so low in Spanish firms? One possible answer may lie in a small contribution of innovative investments to value creation at the firm level. When pulling together complementary sources of spending data and related evidence to measure these investments, we observe that R&D is low for international standards, but overall intangible investment seems adequate. Data from the Central de Balances are then used to assess the effect of R&D and other innovative investments on the value of Spanish firms. The results suggest that intangible investments have a positive impact on market values which is more substantial for innovative sectors, and this is also the case for R&D capital. Such a positive impact is influenced by the size of the firm and its presence in the stock market. In fact, an alternative explanation to low R&D intensity could be found in the small fraction of firms publicly traded in the stock market in Spain, as far as equity holders tend to value intangible assets more than bond holders. Consequently, promoting a more active role of market valuations might be a promising policy.
    Date: 2009–06

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