nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2015‒01‒31
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Tax reforms in EU Member States - 2014 Report By European Commission
  2. Tax Rate and its Determinations: An Opinion from Ibn Khaldun By Ismail, Abdul Ghafar ; Jaafar, Abu Bakar
  3. Fiscal Resources for Inclusive Growth By Das-Gupta, Arindam
  4. The unintended consequences and challenges of the Basel III Leverage Ratio: supplementary leverage ratios By Ojo, Marianne
  5. Adaptation : A Partially Automated Approach By Manjing, Tham ; Bukhsh, F.A. ; Weigand, H.

  1. By: European Commission (European Commission )
    Abstract: The 2014 This report on Tax Reforms in EU Member States presents an overview of the reforms recently introduced by Member States in the main areas of tax policy and provides up-to-date analysis of the main challenges in each area. It also includes an indicator-based assessment, which gives an initial indication of Member States’ performance in each area
    Keywords: European Union, Taxation, European Semester, VAT, Coporpotate income tax, tax administration, tax reform
    JEL: H21 H22 H23 H25 H27 H62
    Date: 2014–10
  2. By: Ismail, Abdul Ghafar (The Islamic Research and Teaching Institute (IRTI) ); Jaafar, Abu Bakar (The Islamic Research and Teaching Institute (IRTI) )
    Abstract: Tax is an alternative method for a country to obtain revenue for spending. But the issue arises when there are differences of opinion on the tax rate. Economists argue that to obtain higher tax revenue, it is necessary to lower the tax rate. In this paper, an analysis of tax rates is conducted by looking at the findings of Ibn Khaldun in his book Muqaddimah. This study also examines other hypotheses related to taxation. The findings show that the optimal rate of taxation can be determined.
    Keywords: optimal tax rate; tax revenue; Khaldunia; tax-spending hypothesis; fiscal decentralization
    Date: 2015–01–19
  3. By: Das-Gupta, Arindam (Goa Institute of Management )
    Abstract: This paper develops a framework to assess the growth and distribution effects of fiscal resources. Resources are classified as debt, other capital receipts, foreign aid and other unilateral grants, non-tax revenue, including resource rents, seigniorage, and taxes. The framework is used to assess the fiscal resource bases of economies in developing Asia to the extent permitted by available data. Although there is great diversity in the amount of resources raised in terms of the importance of different revenue sources and in the sophistication of revenue administrations, the analysis suggests that in order to expand their relatively low fiscal resource bases, developing Asian economies need to pay greater attention to non-tax revenue and to taxes other than broad-based taxes on income and consumption, such as property taxes and corrective taxes.
    Keywords: fiscal policy; fiscal resources; taxes; non-tax revenue; growth effects; distribution effects; developing Asia
    JEL: H20 O40 O53
    Date: 2014–11–01
  4. By: Ojo, Marianne
    Abstract: The U.S standard leverage ratio, which is not as stringent as the U.S Supplementary Leverage Ratio, did not include Off Balance Sheet exposures - unlike the Basel leverage ratio. Hence the 3% Supplementary Leverage Ratio was established as part of measures to facilitate the inclusion of Off Balance Sheet exposures in July 2013 - even though many still consider the scope of such inclusion as not being extensive enough - since Secured Financing Transaction Exposures are still excluded. Furthermore, the Enhanced Supplementary Leverage Ratio increased the 3% leverage ratio to 5% (a 2% buffer) for globally systemic important banks (GSIBs) bank holding companies and 6 % for their banking subsidiaries. In respect of securities financing transaction exposures, however, U.S banks are considered to enjoy competitive advantage, since the exclusion of such exposures still persist - even though it is also argued that recent liquidity coverage and net stable funding ratio provisions should serve to address these exposures - this also being in line with the complementary functions of liquidity standards and leverage ratios within the risk-based capital adequacy framework. As well as contributing to the extant literature on supplementary leverage ratios, this paper will seek to illustrate why calibration between the risk capital adequacy framework, liquidity standards, and Basel leverage ratio is even more important than merely a focus on the relationship between the risk capital adequacy framework and the Basel leverage ratio. Meanwhile as regards Europe, there are also concerns relating to sovereign credit risks and the “inadequate pricing” of such risks which results in under capitalisation of banks, as well as potential consequences relating to serious distortions in financial stability whose effects could have repercussions extending beyond the Euro zone and globally. This paper considers two headings which have generated controversial discussions - particularly in respect of Basel III leverage ratio implementation, namely, under capitalisation of banks and the issue of calibration. It aims to illustrate why these constitute areas which are still in need of redress - even though tremendous efforts have been made to align the Basel III Leverage Ratio with the Supplementary Leverage Ratios. The paper will also demonstrate that whilst there are concerns related to the issue of calibration, certain jurisdictions such as the UK, have also introduced supplementary leverage ratios - as well as considered alternatives to the Basel leverage ratio.
    Keywords: supplementary leverage ratios; short term funding; financial stability; OBS exposures; Standardised Approach to Counterparty Credit Risk (SA-CCR); credit conversion factors (CCF)
    JEL: E6 G14 G2 G28 K2
    Date: 2015–01–15
  5. By: Manjing, Tham ; Bukhsh, F.A. (Tilburg University, Center For Economic Research ); Weigand, H. (Tilburg University, Center For Economic Research )
    Abstract: This paper showcases the possibility of creating an adaptive auditing system. Adaptation in an audit environment need human intervention at some point. Based on a case study this paper focuses on automation of adaptation process. It is divided into solution design and validation parts. The artifact design is developed around import procedures of M-company. An overview of the artefact is discussed in detail to fully describes the adaptation mechanism with automatic adjustment for compliance requirements. Validation part of this paper is based on an experimental validation of the artefact on simulated data.
    Keywords: Adaptation; Compliance management; Auditing
    JEL: M15 M42
    Date: 2014

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