nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2013‒12‒20
four papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Goodwill impairment testing according to IFRS in the United Kingdom: An empirical analysis of the discount rates used by the thirty largest FTSE 100 companies By Aschfalk-Evertz, Agnes; Oliver, Rüttler
  2. Tax deferral and mutual fund inflows: evidence from a quasi-natural experiment By Giuseppe Cappelletti; Giovanni Guazzarotti; Pietro Tommasino
  3. Replacing churches and mason lodges? Tax exemptions and rural development By Behaghel, Luc; Lorenceau, Adrien; Quantin, Simon

  1. By: Aschfalk-Evertz, Agnes; Oliver, Rüttler
    Abstract: This paper analyses the role and the methods of the determination of discount rates used for goodwill impairment testing according to IFRS. In addition to analysing the regulations laid out by the applicable IFRS, the paper displays the results of an empirical analysis of the discount rates used by the 30 largest FTSE 100 companies in the years 2008 to 2011. Additionally, the results are compared to those of a study with a similar focus conducted by Duff & Phelps in 2011. The paper shows that it is adequate to use the value-in-use in determining the recoverable amount and that the grossing-up method for transferring the post-tax WACC into a pre-tax rate - which most of the companies use in practice - is not adequate. According to the empirical analysis, the average discount rates used have remained comparatively stable between 2008 and 2011. This suggests that the companies did not reflect any additional risks in the discount rate during the crisis. The study also shows that disclosures regarding impairment testing lack detailed information. -- Diese Studie analysiert die Rolle und die Ermittlung der Diskontierungszinssätze im Rahmen des Wertminderungstests für Firmenwerte nach IFRS. Zusätzlich zu der Untersuchung der anwendbaren IFRS werden die Ergebnisse einer empirischen Analyse der von den 30 größten FTSE 100 Unternehmen verwendeten Diskontierungszinssätzen dargestellt. Diese Ergebnisse werden mit einer ähnlichen, 2011 von Duff & Phelps durchgeführten Studie verglichen. Die Studie macht zum einen deutlich, dass der Nutzungswert die angemessenere Methode zur Ermittlung des erzielbaren Betrags ist und zum anderen, dass die von den Unternehmen meist angewandte Methode zur Umwandlung des WACC in eine Vorsteuer-Größe nicht angemessen ist. Die empirische Analyse zeigt, dass die verwendeten Diskontierungszinssätze zwischen 2008 und 2011 nur geringen Schwankungen unterlagen, was darauf hindeutet, dass die Unternehmen während der Finanzkrise keine zusätzlichen Risiken in ihren Diskontierungszinssätzen berücksichtigt haben. Festgestellt wurde außerdem, dass die von den meisten Unternehmen gemachten Anhangsangaben zu den Wertminderungstests für Firmenwerte nicht sehr detailgenau sind.
    Date: 2013
  2. By: Giuseppe Cappelletti (Bank of Italy); Giovanni Guazzarotti (Bank of Italy); Pietro Tommasino (Bank of Italy)
    Abstract: We propose a new method to identify the impact of a change in the tax burden on mutual fund inflows, exploiting a switch from an accrual-based to a lization-based tax regime. We use quasi-experimental data from Italy where, starting from July 2011, the tax regime for domestic mutual funds was changed from an accruals basis to a realization basis, while the taxation of foreign funds remained on a realization basis. We find that the reform has had a positive effect on net inflows of Italian funds (the treated group) with respect to foreign funds (the control group). The effect is both economically and statistically significant. Moreover, we find no evidence that the increase in the demand for Italian funds came at the expense of foreign funds.
    Keywords: mutual funds, net flows, taxation
    JEL: G20 G2 H2
    Date: 2013–11
  3. By: Behaghel, Luc; Lorenceau, Adrien; Quantin, Simon
    Abstract: This paper uses regression discontinuity design to provide quasi-experimental estimates of the impact of a tax credit program targeted at rural areas in France, including corporate and payroll tax exemptions. We find no impact of the program on total employment or the number of businesses, and no impact of the different program components on targeted subsets of firms. Comparison with a contemporaneous urban scheme suggests ways the incentives of the rural program could be targeted more effectively.
    Keywords: tax exemptions; rural development; enterprise zones
    JEL: J23 J32 H32
    Date: 2013–12
  4. By: Nedelchev, Miroslav
    Abstract: The corporate governance practices of EU bank group were based on the principle of self-regulation. The negative effects of adoptation of the principle were on stakeholders account – deposit insurance funds, government loans, depositors, and taxpayers. The international financial crisis gives reasons for new institutional framework. The taken measures on pan-European level defined new role for traditional actors in which key actors are shareholders and regulators. The newn instruments in modern corporate governance are decrease of corporate structure complexity and isolation of different services in separate entities.
    Keywords: corporate governance, bank groups
    JEL: G34
    Date: 2013

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