nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2014‒12‒03
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Theories of Accounting: Evolution & Developments, Income-Determination and Diversities in Use By Angus O. Unegbu
  2. Supervisory Roles in Loan Loss Provisioning in Countries Implementing IFRS By Ellen Gaston; Inwon Song
  3. In Praise of Frank Ramsey's Contribution to the Theory of Taxation By Joseph E. Stiglitz
  4. Conventional and Insidious Macroeconomic Balance-Sheet Crises By Bas B. Bakker; Leslie Lipschitz
  5. Setting one voluntary standard in a heterogeneous Europe - EMAS, corruption and stringency of environmental regulations By Stefan Borsky; Esther Blanco

  1. By: Angus O. Unegbu
    Abstract: Accounting frameworks follow stipulations of existing Accounting Theories. This exploratory research sets out to trace the evolution of accounting theories of Charge and Discharge Syndrome and the Corollary of Double Entry. Furthermore, it dives into the theories of Income Determination, garnishing it with areas of diversities in the use of Accounting Information while review of theories of recent growths and developments in Accounting are not left out. The method of research adopted is exploratory review of existing accounting literature. It is observed that the emergence of these theories exist to minimize fraud, errors, misappropriations and pilfering of Corporate assets. It is recommended that implementation prescriptions of these theories by International Financial Reporting Standard Committee and Practicing Accountants should be adhered to and simplified so as to avoid confusing and scandalous reporting of financial statements
    Date: 2014–11
  2. By: Ellen Gaston; Inwon Song
    Abstract: Countries implementing International Financial Reporting Standards (IFRS) for loan loss provisioning by banks have been guided by two different approaches: International Accounting Standards (IAS) 39 and Basel standards. This paper discusses the different accounting and regulatory approaches in loan loss provisioning, and the challenges supervisors face when there are different perspectives and lack of guidance from IFRS. It suggests actions that supervisors can take to help banks meet regulatory and capital requirements and, at the same time, comply with accounting principles.
    Keywords: Loans;Banks;Bank supervision;Accounting standards;Basel Core Principles;Supervisory role, loan loss provisioning, IFRS implementation
    Date: 2014–09–15
  3. By: Joseph E. Stiglitz
    Abstract: Frank Ramsey's classic paper "A contribution to the theory of taxation" gave rise to the modern theory of optimal taxation. This paper traces the literature that grew out of Ramsey's 1927 paper and assesses which of its key insights has proven robust. Though the path breaking work of Peter Diamond and James Mirrlees showed that Ramsey's results could be generalized in some important ways, other work showed that the domain of applicability of Ramsey's original insights may be more limited: changes in assumptions about the set of feasible taxes (not allowing certain taxes, or allowing a progressive income tax or non-linear commodity taxes), and in particular about the taxation of pure rents, incorporating more explicitly distributional considerations, and/or recognizing the important ways in which our economy differs from the competitive model underlying Ramsey's analysis all change the optimal structure of commodity taxation in important ways.
    JEL: E62 H2 H21
    Date: 2014–09
  4. By: Bas B. Bakker; Leslie Lipschitz
    Abstract: This paper describes the anatomy of two types of balance-sheet macroeconomic crises. Conventional balance-sheet crises are triggered by external imbalances and balance sheet vulnerabilities. They typically occur after capital inflows have led to a substantial build up of foreign currency exposure. Insidious crises are triggered by internal imbalances and balance sheet vulnerabilities. They occur in high-growth economies when an initially equilibrating shift in relative prices and resources and credit in favor of the nontraded sector overshoots equilibrium. The paper argues that policymakers are now better able to forestall conventional crises, but they are much less capable of early detection and avoidance of insidious crises.
    Keywords: Fiscal imbalances;Developed countries;Emerging markets;Capital account;Balance sheets;Financial crises;crises, balance sheets, business cycles, capital flows
    Date: 2014–08–22
  5. By: Stefan Borsky; Esther Blanco
    Abstract: This article addresses the mediating effect of corruption on the influence of stringency of environmental regulation on firms' voluntary environmental performance. Using panel data from adoption of the EU Eco-Management and Audit Scheme (EMAS) across European Union countries from 1995 to 2011, we unveil a direct and an interacting effect of countries' corruption and regulatory stringency on the rate of adoption. First, stricter environmental regulation reduces the rate of EMAS certificates, thus supporting a crowding-out effect of mandatory regulation on voluntary action. Second, increased corruption reduces the rate of EMAS certificates. Third, the negative effect of stringency of regulation on EMAS certification rates is reinforced by corruption. In sum, these results suggest that previous studies address- ing the implications from stricter regulations on firms' voluntary action that abstract from corruption might underestimate the potential negative effect of stringency of regulation on firms' voluntary action.
    Keywords: Voluntary environmental action, environmental taxes, corruption, negative binomial regression
    JEL: F53 Q23 Q27 F18 L15
    Date: 2014–11

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