nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2015‒05‒22
eight papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Financialized Accounting: Capitalization and leveraging the intangible By Colin Haslam; Nick Tsitsianis
  2. Taxation and Investment in Colombia By Sarah Perret; Bert Brys
  4. The impact of tax changes on the short-run investment behaviour of New Zealand firms By Richard Fabling; Richard Kneller; Lynda Sanderson
  5. VAT Notches By Liu, Li; Lockwood, Ben
  6. 世界金融危機下ロシアの企業所有構造と経営監督体制−−工業企業のパネルデータ分析−− By 岩﨑, 一郎
  7. The Study on Guideline for Cost Reduction Using Activity Based Costing System of PST Concrete Company By Chollada Love
  8. GHG or not GHG: Accounting for diverse mitigation contributions in the post-2020 climate framework By Christina Hood; Gregory Briner; Marcelo Rocha

  1. By: Colin Haslam; Nick Tsitsianis
    Abstract: This paper is about the financialization of international accounting standards by the International Accounting Standards Board (IASB). International Financial Reporting Standards (IFRS’s) now incorporate fair value reporting for different types of corporate assets. Thus the interminable process of speculative recapitalization and financial volatility associated with asset trading in secondary capital markets is absorbed into the fabric of corporate financial statements. This change in the reporting process, within the financial statements, creates new forms of risk. First, the process of double entry bookkeeping transmits disturbance between line items that may or may not have an equivalent capacity to absorb these financial adjustments. Second, asset valuations in current time are very sensitive to changes in assumptions about future cash flow, risk and cost of capital. The IASB’s financialization of accounting has the potential to generate dysfunctional economic and social outcomes because accounting line items are increasingly wired into capital market conditions and valuation modelling.
    Keywords: Financialization, International Accounting Standards, Mark to Market Accounting, Risk.
    JEL: F3 G32
    Date: 2015–05
  2. By: Sarah Perret; Bert Brys
    Abstract: The Colombian corporate tax system is highly complex and distortive. The effective tax burden on businesses is very high due to the combined effect of the corporate income tax, the corporate surtax introduced in 2012 (CREE), the net wealth tax on business assets and the value added tax (VAT) on fixed assets. Indeed, in addition to high statutory taxes on corporate income, formal sector businesses are subject to a wealth tax on their net assets and to a production-based VAT system under which VAT paid on the purchases of fixed assets is not creditable against output VAT. Calculations in this paper find that the total marginal effective tax rate reaches about 60% for equity-financed investments. Such a high effective corporate tax burden is likely to deter investment and to further encourage tax evasion in the future and therefore calls for a fundamental business tax reform. This paper also reviews the other key elements of the capital income tax system in Colombia. This Working Paper relates to the 2014 OECD Economic Survey of Colombia (<P>Fiscalité et investissement en Colombie<BR>Le système d'imposition des sociétés en Colombie est très complexe et génère d’importantes distorsions. La charge fiscale effective sur les entreprises est très élevée en raison de l'effet combiné de l’impôt sur les sociétés, de la surtaxe sur les sociétés introduite en 2012 (CREE), de l'impôt sur les actifs nets des entreprises et de la taxe sur la valeur ajoutée (TVA) afférente aux immobilisations. En effet, en plus d’impôts élevés sur les sociétés, les entreprises du secteur formel sont soumises à un impôt sur leurs actifs nets et à un système de TVA selon lequel la TVA payée sur les actifs immobilisés n’est pas déductible. Les calculs dans cet article montrent que le taux marginal d’imposition effectif atteint au total environ 60 % pour les investissements financés par fonds propres. Une telle charge fiscale effective sur les entreprises est de nature à dissuader l'investissement et à encourager davantage l'évasion fiscale à l’avenir et nécessite donc une réforme structurelle de la fiscalité des entreprises. Cet article examine aussi les autres éléments clés de la taxation des revenus du capital en Colombie. Ce document de travail se rapporte à l’Étude économique 2014 de l’OCDE sur la Colombie ( ique-colombie.htm).
    Keywords: taxation, investment, Colombia, Colombie, investissement, fiscalité
    Date: 2015–04–30
  3. By: Katarzyna (Cracow University of Economics); Mario Nicoliello (Universita Degli Studi Di Brescia)
    Abstract: Accounting, as a universal information and control system has a long history, widely recognized theoretical achievements and unchallenged practical values is evolving, which indicates development. Further development of accounting, however, depends largely upon trends, opportunities and conditions.Nowadays, to specify a concrete group of entities whose role and importance to the economy of the country is gaining special character, one must look into regulations affecting the financial accounting system at both national and international level.The aim of the study is to identify different accounting regulations developed for the needs of large businesses (IAS, IFRS) along with micro, small and medium-sized enterprises (national regulations, directives). Since, however, the differences in the adopted methods and accounting policies depend not only on the business size, but are characteristic of the country implementing them, the discussion follows from the analysis of the solutions used in Poland and Italy.
    Keywords: accounting, national rules, implementation,
    JEL: M40 M41 M48
  4. By: Richard Fabling (Motu Economic and Public Policy Research); Richard Kneller (University of Nottingham); Lynda Sanderson (New Zealand Treasury)
    Abstract: This paper examines firm-level investment responses to exogenous changes in the forward looking user cost of capital associated with reforms to the corporate and personal tax system over the last decade. Adjustments to personal tax rates and fiscal depreciation allowances provide a direct lever through which government policy can affect the cost of capital faced by firms. The effect of these tax adjustments differs across firms according to their asset structure, providing both inter-temporal and inter-firm variation in UCCs and enabling an assessment of the short-run impact of UCC changes on investment behaviour. This analysis shows that while tax-induced changes in the UCC have significantly affected investment behaviour among some firms, the aggregate impacts are likely to have been negligible as the industries in which investment impacts are observed make a very small contribution to aggregate investment.
    Keywords: Tax, Depreciation, User Cost of Capital
    Date: 2015–05
  5. By: Liu, Li; Lockwood, Ben
    Abstract: We develop a conceptual framework which captures the effect of the VAT system on profit by two effective taxes. This allows (i) predictions of the determinants of voluntary registration and bunching at the registration threshold; (ii) develops a formula for estimating the elasticity of value-added with respect to the statutory tax. We show that the marginal excess burden of the tax on suppliers is measured by this elasticity, extending Feldstein's analysis of the elasticity of taxable income to an indirect tax setting. We bring the theory to the data, using linked administrative VAT and corporation tax records in the UK from 2004-2009. Consistently with the theory, voluntary registration is positively related to the intensity of input use and negatively related to the share of B2C transactions. There is bunching at the VAT threshold, and the amount of bunching is negatively related to the intensity of input use and positively related to the share of B2C transactions, again consistently with the theory. We provide an estimate of the elasticity of the VAT tax base in the range of 0.09 and 0.18.
    Keywords: bunching; elasticity; tax notches; VAT; voluntary registration
    JEL: H25 H32
    Date: 2015–05
  6. By: 岩﨑, 一郎
    Abstract: 本稿は,ロシア連邦全域で実施した独自聞き取り調査に基礎付けられた工業企業のパネル データを用いて,世界金融危機を挟む2005~09年の期間における企業統治システム の構造変化とその影響因子の実証分析を試みた。その結果,ロシアでは,当該期間を通じ て,経営監督体制の質的な改善が進んだことが確認された。更に本稿の実証結果は,外部 株主所有比率と取締役会構成との間の相関関係及び取締役会社外役員比率の内部監査体制 への影響に関する仮説を強く支持した。その一方,世界金融危機は,取締役会の独立性を 向上する一方,内部監査体制のそれを劣化させたという意味で,非対称的な構造変動をも たらした可能性が高く,世界金融危機の企業統治規律効果に関する理論的な予測を,一部 否定する実証結果も同時に提示された。
    Keywords: global financial crisis, ownership change, corporate governance evolution, board composition, internal audit system, Russia
    JEL: D22 G01 G34 M42 P34
    Date: 2015–04
  7. By: Chollada Love (Maejo University)
    Abstract: The objective of this research was to study the Guideline for Cost Reduction Using Activity Based Costing for PST Concrete Company Limited. Data was collected from the corporate database such as the structure, job description, quality manual and interviews of executives and workers as well as the observation of employees’ performance. This research found that the PST Concrete Company Limited has 124 activities. In conclusion, the company has 108 value-added activities and 16 nonvalue-added activities. This research had been worked on activity cost calculation and cost per driver calculation of accounting and finance division. Out of all costs of accounting and finance division 292,878.55 baht, 54,334.81 baht is the cost of nonvalue-added activities, equally 18.55 %. The accounting and financial division has 2 nonvalue-added activities : The cost per time of follow-up problematic debitor is 1,252.33 baht and the cost per time of connection government units is 1,750.55 baht.
    Keywords: activity based costing, value-added activities, nonvalue-added activities, cost per driver calculation
    JEL: M41
  8. By: Christina Hood; Gregory Briner; Marcelo Rocha
    Abstract: It is likely that a diverse range of nationally-determined mitigation contributions will be communicated by Parties under the 2015 climate change agreement. An effective post-2020 accounting framework to understand and track implementation of these mitigation contributions will therefore need to accommodate a range of contribution types and varying national capacities. With Parties now undertaking domestic preparations for developing intended mitigation contributions for the 2015 agreement, three key issues are: (i) what up-front information should be provided alongside intended mitigation contributions to facilitate understanding of the intended contributions and their expected impacts on greenhouse gas (GHG) emissions levels; (ii) what accounting rules or guidance for post-2020 mitigation contributions (if any) would it be helpful to agree or develop before 2020, to facilitate understanding of intended contributions and their expected impacts on GHG emissions levels; and (iii) the timing of key decisions on accounting issues, taking into account the agreed timetable for communication of intended mitigation contributions. This paper explores these questions in greater detail and highlights issues that Parties may wish to consider when preparing and communicating their mitigation contributions. Providing Parties with some structure for the framing of intended mitigation contributions could help simplify domestic preparations for these intended contributions, in particular for those Parties with lower institutional capacity.<P>GES ou non : comptabiliser les diverses contributions à l'atténuation dans le cadre d'action climatique de l'après 2020<BR>De très diverses contributions en matière d’atténuation, déterminées au niveau national, seront sans doute communiquées par les Parties dans le cadre de l’accord de 2015 sur le changement climatique. Pour bien comprendre et suivre la mise en oeuvre de ces contributions en matière d’atténuation, le cadre comptable en vigueur après 2020 devra prendre en compte tout un éventail de types de contributions et de capacités nationales. Alors que les Parties se préparent au niveau national pour établir les contributions qu’ils prévoient en matière d’atténuation en vue de l’accord de 2015, trois questions essentielles se posent : (i) quelles sont les informations préalables qui devraient accompagner les contributions prévues en matière d’atténuation pour faciliter l’interprétation de ces contributions et la compréhension de leurs effets attendus sur les niveaux d’émissions de gaz à effet de serre (GES) ; (ii) quelles règles comptables ou orientations à cet égard y aurait-il (éventuellement) intérêt à approuver ou concevoir avant 2020 pour les contributions en matière d’atténuation postérieures à 2020 afin de faciliter l’interprétation de ces contributions et la compréhension de leurs effets attendus sur les niveaux d’émissions de GES ; et (iii) à quel moment faudra-t-il prendre les décisions clés sur les aspects comptables, en tenant compte du calendrier convenu pour la communication des contributions prévues en matière d’atténuation ? Ce rapport étudie ces questions en détail et fait ressortir les aspects que les Parties souhaitent peut-être prendre en considération dans la préparation et la communication de leurs contributions en matière d’atténuation. Il serait utile de fournir aux Parties, sous une forme ou une autre, un cadre dans lequel définir les contributions prévues en matière d’atténuation afin de simplifier leurs préparatifs à l’échelon national concernant ces contributions, en particulier pour les Parties disposant de moyens institutionnels moins importants.
    Keywords: mitigation, market mechanisms, emissions accounting, UNFCCC, land-use change, climate change, forestry, greenhouse gas, 2015 agreement, double counting, changement d'affectation des terres, comptabilité des émissions, gaz à effet de serre, atténuation, mécanismes de marché, CCNUCC, changement climatique, foresterie, double comptage, accord de 2015
    JEL: F53 Q23 Q54 Q56 Q58
    Date: 2014–05

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