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on Accounting and Auditing |
| By: | Levan Sabauri (Ivane Javakhishvili Tbilisi State University); Elena Kharabadze (Ivane Javakhishvili Tbilisi State University) |
| Abstract: | Reform of accounting secures its refinement according to the universally recognized guidelines, assumptions and regulations set out in the International Financial Reporting Standards (IFRS). According to this concept direct application of the IFRS or creation of the national system of accounting and reporting make the relevant information even more reliable. In addition to the financial accounting the application of IAS 41: “Agriculture” supports the agricultural enterprises in management accounting, their development strategies and scientifically substantiated economic decisions. IAS 41: “Agriculture” came into effect in 2003 emphasizing the specifics of agriculture and the methods how the information on farming and biological assets has to be reflected in financial reporting. IAS 41 also establishes Biological assets at their fair value that is noteworthy in terms of practicability. However, IAS application requires the national legislation to be drafted for accounting the livestock and plants and relevant changes made to the standard acts. Assessment of the biological assets and agricultural products is the biggest emerging challenge in the introduction of IAS 41. As yet, the normative documents in Georgia do not say anything as to the calculation of fair value of biological assets and agricultural products. As said above, the fair value at the active market cannot always be determined. Hence, we suggest to apply the databank we have developed. According to this method an enterprise may employ the databank in order to evaluate its own food products, perennial plants, live weight gain and brood (a calf, piglet, lamb, and stallion). In the absence of the active market, the suggested databank and methods of definition of biological assets and agricultural products make accurate and transparent assessment and accounting possible. However, it is noteworthy that whatever way the value may be defined in (depending on the availability or absence of the active market), the value determination method is to be reflected in the accounting policy developed in line with the IFRS.Assessment of the biological assets and agricultural products at their fair value is subject to adjustments, though the suggested method makes for more accurate evaluation of the performance results, transparency of information in the financial statement and efficiency of a company. |
| Keywords: | Accounting, Fair value, Exchange, Initial Price, Biological Assets, Analysis of reliability, Active Market, Agricultural enterprises, discount rate, average growth |
| JEL: | M41 J43 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:2604496&r=acc |
| By: | Ioana Laura Tibulca (Bucharest University of Economic Studies) |
| Abstract: | Tax convergence is one of the major issues that EU policy makers have been constantly debating over the last years. The goal of this study is to establish the existence or lack of tax convergence among the EU Member States that are also part of the Eurozone and also to understand if their membership in the Eurozone has reinforced tax convergence trends or not. In this research, the overall tax burden is seen as a suitable proxy for the tax system of a country. The research database contains information for the 19 European countries that are part of the Eurozone. The main research method is sigma-convergence based on the coefficient of variation, on the Gini index and on the Theil index. Results are calculated for different sets of data: the current Eurozone countries (19 countries), the current Eurozone countries and Denmark (20 countries), the "old" Eurozone countries (countries that adopted the Euro before 2002 - 12 countries) . AcknowledgementThis work was cofinanced from the European Social Fund through Sectoral Operational Programme Human Resources Development 2007-2013, project number POSDRU/159/1.5/S/142115 „Performance and excellence in doctoral and postdoctoral research in Romanian economics science domain”. |
| Keywords: | convergence, taxation, Eurozone, Gini index, Theil index |
| JEL: | H20 H71 F30 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:2604409&r=acc |
| By: | World Bank Group |
| Keywords: | Private Sector Development - Business Environment Banks and Banking Reform Private Sector Development - Competitiveness and Competition Policy Private Sector Development - Business in Development Finance and Financial Sector Development - Debt Markets |
| Date: | 2015–02 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:21793&r=acc |
| By: | Luigi Bernardi (Università di Pavia) |
| Abstract: | The purpose of this paper is to offer a primer on certain important features and issues concerning Internet and taxation in the European Union. After a general introduction concerning the origins of the matter, the paper discusses why a tax on the huge profits made by the big US digital MNEs in Europe was not substantially reflected in the tax policy of EU members, notwithstanding the large tax gap among EU countries resulting from the shift in profits by the (US digital) MNE towards lower or no taxation countries. Then the main directives on Internet and taxation introduced by the EU (and also by the OECD) since the late 1990s are discussed: the EU especially focusses on establishing the due place of taxation on electronic commerce, while the OECD (more recently together with the G20) has placed the emphasis on regulating Transfer Prices and contrasting Base Erosion and Profits’ Shifting (BEPS). |
| Keywords: | web tax, e-commerce, profits shifting, Europe, OECD |
| JEL: | H20 H24 H25 H26 |
| URL: | http://d.repec.org/n?u=RePEc:ipu:wpaper:30&r=acc |
| By: | Perederiy, Volodymyr |
| Abstract: | This paper proposes a simple technical approach for the derivation of future (forward) point-in-time PD forecasts, with minimal data requirements. The inputs required are the current and future through-the-cycle PDs of the obligors, their last known default rates, and a measure for the systematic dependence of the obligors. Technically, the forecasts are made from within a classical asset-based credit portfolio model, just with the assumption of a suitable autoregressive process for the systematic factor. The paper discusses in detail the practical issues of implementation, in particular the parametrization alternatives. The paper also shows how the approach can be naturally extended to low-default portfolios with volatile default rates, using Bayesian methodology. Furthermore, the expert judgments about the current macroeconomic state, although not necessary for the forecasts, can be embedded using the Bayesian technique. The presented forward PDs can be used for the derivation of lifetime credit losses required by the new accounting standard IFRS 9. In doing so, the presented approach is endogenous, as it does not require any exogenous macroeconomic forecasts which are notoriously unreliable and often subjective. |
| Keywords: | Prediction, Probability of Default, PD, Default Rates, Through-the-Cycle, TTC, Point-in-Time, PIT, Credit Portfolio Model, Systematic Factor, Macroeconomic Factor, Time Series, Autoregression, Bayesian Analysis, IFRS 9, Accounting, Financial Instruments, Lifetime, Expected Credit Losses |
| JEL: | C11 C13 C22 C51 C53 E32 E37 G33 M41 |
| Date: | 2015–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:65679&r=acc |
| By: | Mukhtar Musa BAko (Bayero university Kano) |
| Abstract: | The study is aimed at determining the impact of ownership structure on dividend policy of firms listed in the Nigerian Consumer Goods Industry. The study employs the ex-post-facto research design. Data were collected from annual reports and accounts of sampled companies and were analysed using descriptive statistics, correlation and multiple regression methods. The study finds that insider share ownership (ISO) and outsider share ownership (OSO) have negative and insignificant impact on dividend per share (DPS) while block share ownership (BSO) has positive and insignificant impact on DPS. However, the impact of control variable earnings per share (EPS) on DPS is positive and significant. The study recommends that, in the analysis of dividend policy of companies in the consumer goods industry in Nigeria stakeholders should pay limited attention to the ownership structure of the company but the bottom line, as it is the earnings that matters not the dividend or ownership structure. This is because dividend per share is determined significantly by earnings not how the company is owned. However, considering dividend payout ratio as determinant of dividend payment, it is recommended that dividend clientele may be encouraged to invest in the consumer goods industry in Nigeria where there is high rate of block share ownership. |
| Keywords: | Dividend Policy, Ownership Structure, Agency Theory, Nigeria |
| JEL: | M49 G30 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:2604448&r=acc |
| By: | Volodymyr Perederiy |
| Abstract: | This paper proposes a simple technical approach for the derivation of future (forward) point-in-time PD forecasts, with minimal data requirements. The inputs required are the current and future through-the-cycle PDs of the obligors, their last known default rates, and a measure for the systematic dependence of the obligors. Technically, the forecasts are made from within a classical asset-based credit portfolio model, just with the assumption of a suitable autoregressive process for the systematic factor. The paper discusses in detail the practical issues of implementation, in particular the parametrization alternatives. The paper also shows how the approach can be naturally extended to low-default portfolios with volatile default rates, using Bayesian methodology. Furthermore, the expert judgments about the current macroeconomic state, although not necessary for the forecasts, can be embedded using the Bayesian technique. The presented forward PDs can be used for the derivation of lifetime credit losses required by the new accounting standard IFRS 9. In doing so, the presented approach is endogenous, as it does not require any exogenous macroeconomic forecasts which are notoriously unreliable and often subjective. |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1507.05415&r=acc |
| By: | Nyankomo Marwa and Meshach Aziakpono |
| Abstract: | This paper examined the profitability and financial sustainability of Saving and Credit Cooperatives (SACCOs) in Tanzania. The data set used in this study came from SACCOs’ audited financial reports for the year 2011. Profitability was estimated using return on assets and financial sustainability was estimated using the ratio of total expenses to total revenue. Linear regression was used to investigate the determinants of financial sustainability. The results show that about 61% of our sample SACCOs are operationally sustainable and 51% of the total sample is both operationally and financially sustainable. The average sustainability score was 127%. On average, our results for profitability (measured by return on assets) are higher than some of the results reported for standard microfinance both in the region and globally. In terms of sustainability our results suggest a promising future for the financial cooperative business model as an alternative form of financing the poor. This study contributes in two ways. First it contributes towards the scanty empirical literature on the performance of saving and credit cooperatives in developing countries and Tanzania in particular. Second, it provides provocative evidences which appear to contradict earlier and more pessimistic accounts on members based microfinance. It challenges the existing ontology about the potential of extending member-based microfinance. We acknowledge that only SACCOs with audited financial statements were included in our study, thus the conclusion is limited to SACCOs with similar characteristics. Future work might consider extending the analysis to include SACCOs with non-audited financial statements. |
| Keywords: | Saving and Credit Cooperatives, Microfinance, Sustainability, Tanzania |
| JEL: | G21 G2 D31 D24 I30 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:529&r=acc |
| By: | Bettendorf, Timo; León-Ledesma, Miguel A. |
| Abstract: | German labor market reforms in the 1990s and 2000s are generally believed to have driven the large increase in the dispersion of current account balances in the Euro Area. We investigate this hypothesis quantitatively. We develop an open economy New Keynesian model with search and matching frictions from which we derive robust sign restrictions for a wage bargaining shock. We then impose these restrictions on a Global VAR consisting of Germany and 8 EMU countries to identify a wage bargaining shock in Germany. Our results show that, although the German current account was significantly affected by wage bargaining shocks, their contribution to European current account imbalances was negligible. We conclude that the reduction in bargaining power of German unions after labor market reforms cannot be the lone driver of European imbalances. |
| Keywords: | european imbalances,German wage moderation,DSGE,Global VAR,sign restrictions |
| JEL: | F10 F32 F41 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdps:152015&r=acc |