nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2015‒12‒01
eleven papers chosen by
Alexander Harin
Modern University for the Humanities

  1. International Practice of Generation of the National Budget Income on the Basis of the Generally Accepted Financial Reporting Standards (IFRS) By Dudin, Mikhail Nikolaevich; Prokofiev, Mikhail Nikolaevich; Fedorova, Irina Yuryevna; Frygin, Aleksandr Vladimirovich; Kutsuri, Georgiy Nikolaevich
  2. International practice of formation of the national budget revenues on the basis of generally accepted financial reporting system (IFRS) By Dudin, Mikhail Nikolaevich; Prokofiev, Mikhail Nikolaevich; Fedorova, Irina Yuryevna; Frygin, Aleksandr Vladimirovich; Kutsuri, Georgiy Nikolaevich
  3. Assessment of financial control practices in Polytechnics in Ghana. A case study of Sunyani Polytechnic By Prempeh, Kwadwo Boateng; Twumasi, Patrick; Kyeremeh, Kwadwo
  4. The Effect of the Tax System as an Institutional Factor on the Business Structure in Europe By Bartha, Zoltan
  5. Searching for the inclusive tax grail: The distributional impact of growth enhancing tax reform in Ireland By Brendan O’Connor; Terence Hynes; David Haugh; Patrick Lenain
  6. Corporate governance structure and shareholder wealth maximisation By Premepeh, kwadwo Boateng; Odartei-Mills, Eugene
  7. Tax incentives and R&D: an evaluation of the 2002 UK reform using micro data By Irem Guceri
  8. Evolving roles of accountants as resources for greater accountability in financial reporting, legislative and judicial processes By Ojo, Marianne; Van Akkeren, Jeanette
  9. Can Reputation Discipline the Gig Economy? Experimental Evidence from an Online Labor Market By Benson, Alan; Sojourner, Aaron J.; Umyarov, Akhmed
  10. Income distribution and the current account: a sectoral perspective By Jan Behringer; Till van Treeck
  11. Looking for a success in the euro crisis adjustment programs: the case of Portugal By Ricardo Reis

  1. By: Dudin, Mikhail Nikolaevich (Russian Academy of Entrepreneurship); Prokofiev, Mikhail Nikolaevich (Financial University under the Government of the Russian Federation); Fedorova, Irina Yuryevna (Financial University under the Government of the Russian Federation); Frygin, Aleksandr Vladimirovich (Financial University under the Government of the Russian Federation); Kutsuri, Georgiy Nikolaevich (Financial University under the Government of the Russian Federation)
    Abstract: The aim of the article is to investigate the relations between financial accounting carried out by business entities and the process of pumping up the income items of the national budgets. Financial accounting is the basis for calculating the tax base and income tax, which in many countries is one of the main items of the budget income. The correctness of accruals and payment of taxes is not just pumping up the income side of the national budget, but also timely execution of budgetary obligations, i.e. timely financial support of the expenditure side of the national budget. During the presentation of the present article the following conclusions have been drawn: Financial accounting is an ordered system of collection and compilation of information on the specifics of the business management of the company, on the use and allocation of the owners' capital; Financial reporting of the company is formed on the basis of the financial accounting, the financial reporting data describe the company's financial state, investment prospects, solvency, credit worthiness; Current country and regional financial accounting models cannot be considered as reference ones as they admit the possibility of the management of the accounting data, both in the interests of the business entity and in the interests of the owners; At the international level it is necessary to continue improving the principles, standards and accounting models by convergence of the financial and tax accounting for the purpose of the unified tax charges, the formation of the tax base and ensuring correct and timely payment of taxes to national budgets.
    Keywords: national budget, financial accounting, financial reporting
    Date: 2015–03–20
  2. By: Dudin, Mikhail Nikolaevich (Russian Academy of Entrepreneurship); Prokofiev, Mikhail Nikolaevich (Financial University under the Government of the Russian Federation); Fedorova, Irina Yuryevna (Financial University under the Government of the Russian Federation); Frygin, Aleksandr Vladimirovich (Financial University under the Government of the Russian Federation); Kutsuri, Georgiy Nikolaevich (Financial University under the Government of the Russian Federation)
    Abstract: The purpose of this article is to study the relationship between financial accounting business entities and filling of income for national budgets. Financial accounting - is the basis for calculating the tax base and income tax, which in many countries is one of the main items of budget revenues. The correctness of accrual and payment of taxes is not only filling the revenue part of the national budget, and timely execution of budgetary obligations, that is, timely financial support for the expenditure side of the national budget. During the presentation of the present article were obtained the following conclusions: 1) Financial Accounting is an ordered system for the collection and collation of information about the specifics of doing business organizations about the use and allocation of capital owners; 2) on the basis of financial accounting forms of the financial statements the financial statements describes the financial condition, investment attractiveness, solvency, creditworthiness; 3) currently existing country and regional financial reporting model may not be recognized as the reference is subject to manipulation credentials, both in the interests of the economic entity, and in the interests of the owners; 4) it is necessary to continue the improvement of international principles and standards and accounting model by the convergence of the financial and tax accounting for the purpose of a uniform tax assessment, the formation of the tax base and to ensure correct and timely payment of taxes to the national budgets.
    Keywords: revenues, national budget
    Date: 2015
  3. By: Prempeh, Kwadwo Boateng; Twumasi, Patrick; Kyeremeh, Kwadwo
    Abstract: The study sought to assess the financial Control systems of Polytechnics in Ghana and suggest ways of improving them. Financial control systems exist to help organizations meet their goals and objectives, promote efficiency, reduce the risk of loss, and help ensure financial statement reliability and compliance with laws and regulations. The study adopts the case study design using Sunyani Polytechnic in the Brong Ahafo region, Ghana. A sample size of 50 staff members was selected for the study using the convenience sampling. The sources of data for the study were both primary and secondary data. The study found out that three (3) major financial control systems, namely, preventive, directive and detective control systems are in existence in the Sunyani Polytechnic. Effectively, realistic budgets are established and results are actively monitored. It was discovered from the findings that there was existence of internal financial controls regulated by Financial Administration, Procurement, Internal Audit Agency Acts and indirect application of Committee of Sponsoring Organizations of the Treadway Commission (COSO). It was revealed that the level of compliance was high and this is very commendable and must be encouraged. It was also discovered there was a fair amount of compliance but sanctions are rarely given to a person who does not comply with the laws and conventions of internal financial control. It was recommended that pre-audit should be done for all transactions and seriousness need to be attached to it. It was recommended that audit units need to be strengthened in the Polytechnics. It was recommended that review of internal control needs to be done from time to time, so that new standards can be embraced for performance and improvement. Regular training programmes should be organized for workers on the financial management and control of the Polytechnic activities for its sustainability and growth. There should be in-depth investigations into the accounting system to eliminate all identified weaknesses.
    Keywords: Financial Control, internal control, control procedures, internal audit
    JEL: M41 M42 M48
    Date: 2015–09–09
  4. By: Bartha, Zoltan
    Abstract: This chapter focuses on the influence of tax systems and taxation rules on the firm structure of the 28 European Union member economies. It is argued that higher taxes and more complex tax rules lead to smaller firms, and that, on the other hand reduces macroeconomic perfor-mance. It is found that the firm size and corporate tax rates are negatively correlated in case of medium-sized (R=-0.4; p=0.03) and large (R=-0.41; p=0.03) firms. Indications were found that higher transaction costs caused by taxation lead to smaller firms, as a significant negative correlation was found between the number of hours per year needed to administer tax pay-ments, and the share of large firms (R=-0.41 & p=0.03), and also between KPMG’s comment length (an indicator for tax system complexity) and the share of medium-sized firms’ turnover from the total turnover (R=-0.39 & p=0.045). More complicated tax rules might also cause a smaller proportion of firms to grow quicker, but the significance level of these relationships is not very convincing.
    Keywords: tax system; tax rate; institutions; firm size
    JEL: H21 L11
    Date: 2015–06–19
  5. By: Brendan O’Connor; Terence Hynes; David Haugh; Patrick Lenain
    Abstract: The economic literature suggests that a revenue-neutral shift of tax revenues from income taxes to property taxes would increase GDP per capita in the medium term. This paper analyses for Ireland the consequences of such a shift in the tax mix. In particular, it examines whether this can be carried out in a way that would neither undermine income distribution nor depress government revenue. Simulations using the ESRI tax-benefit model, SWITCH, suggest it is possible to achieve such a broadly revenue-neutral tax shift in a non-regressive way, while lowering marginal tax rates for most taxpayers. In particular, reductions in the Universal Social Charge would reduce marginal and average tax rates and have a positive impact for the income of most households. This could be funded by shifting the tax base toward residential properties, though this might have an adverse effect on income distribution, due to Ireland’s high rates of home ownership throughout the income distribution. The analysis shows that low income groups could be protected through the careful introduction of income-related supports, with revenue losses recovered through a more progressive property tax rate structure. Overall, the simulations show that a shift from labour to property tax can be pro-growth and pro-employment, without equity losses. The paper therefore suggests that tax reform can be inclusive.<P>A la recherche du graal de l'impôt inclusif : L'impact redistributif de la réforme de l'impôt pour améliorer la croissance en Irlande<BR>La littérature économique suggère qu'un transfert, neutre en termes de recettes fiscales, de l’impôt sur le revenu à l'impôt foncier augmenterait le PIB par habitant dans le moyen terme. Ce document analyse dans le cas de l’Irlande les conséquences d'un tel changement de la composition des recettes fiscales. En particulier, il examine si cela peut être effectué sans porter atteinte à la répartition des revenus et aux recettes du gouvernement. Des simulations faires à l'aide du modèle impôts-prestations sociales de ESRI, SWITCH, suggèrent qu'il est possible de faire un tel transfert d’impôt sans incidence sur les recettes, d'une manière non régressive, et tout en réduisant les taux marginaux d'imposition pour la plupart des contribuables. En particulier, réduire la charge sociale universelle permettrait de réduire les taux d'imposition marginaux et moyens et d’avoir un impact positif sur les revenus de la plupart des ménages. Cela pourrait être financé en transférant l’assiette fiscale vers les propriétés immobilières, bien que cela pourrait avoir un effet négatif sur la distribution des revenus en raison de taux élevés d’accès à la propriété immobilière en Irlande. L'analyse montre que les groupes à faible revenu pourraient être protégés en calibrant minutieusement les mesures de soutien au revenu des personnes concernées, mesures qui seraient elles-mêmes financées grâce à une structure plus progressive de l’imposition des propriétés immobilières. Au total, les simulations montrent que transférer l’assiette fiscale de la main-d'oeuvre à la propriété immobilière pourrait être favorable à la croissance et à l’emploi, sans pertes en termes d’équité. Le document suggère donc que la réforme fiscale peut être inclusive.
    Keywords: welfare, income tax, benefits, property tax, Ireland, tax, tax bases, Irlande, bien-être, croissance, simulations, impôt
    JEL: H21 H23 H24 H53 I31 I38
    Date: 2015–11–27
  6. By: Premepeh, kwadwo Boateng; Odartei-Mills, Eugene
    Abstract: Over the past two decades the ideology of shareholder value has become entrenched as a principle of corporate governance among companies. A well-established corporate governance system suggests effective control and accounting systems, stringent monitoring, effective regulatory mechanism and efficient utilisation of firms’ resources resulting in improved performance. The object of the research presented in this paper is to provide empirical evidence on the effects of corporate governance on shareholder value maximization of the listed companies in Ghana. Data from ten companies listed on Ghana Stock Exchange covering the period 2003 –2007 were used and analysis done within the panel data framework. The dependent variables, dividend per share and dividend yield are used as a measure of shareholder wealth maximization and the relation between corporate governance and shareholder wealth maximization is investigated. The regression results show that both the board size and the independence have statistically significant relationship with shareholder wealth maximization.
    Keywords: Corporate governance, shareholder wealth, dividend, wealth maximization, Ghana Stock Exchange.
    JEL: G10
    Date: 2015–01–04
  7. By: Irem Guceri (Oxford University Centre for Business Taxation)
    Abstract: The United Kingdom introduced an R&D tax incentive scheme rst for SMEs in 2000 and then for large rms in 2002, gradually increasing the generosity of both schemes after 2008. This study exploits the differences between companies with similar characteristics that were just above the size threshold for eligibility to the SME scheme and those that were just below, before and after the 2002 reform. This allows for a difference-in-differences approach to measure the (additional) impact of the tax incentives on firms around this size threshold. Treatment group firms are found to have increased their R&D spending by around 18 percent on average in response to the large company tax incentive, implying a user cost elasticity of -1.35. We do not find significant differences in this effect between sectors.
    Keywords: R&D, tax credits, difference-in-differences
    JEL: H25 O31
    Date: 2015
  8. By: Ojo, Marianne; Van Akkeren, Jeanette
    Abstract: Jeanette Van Akkeren, Sherrena Buckby, Kim MacKenzie ("A Metamorphosis of the Traditional Accountant: An Insight into Forensic Accounting Services in Australia") argue that there remains some confusion on what constitutes the role of a forensic professional. It is very well the case that clarity of the definition of what constitutes the role of a forensic professional is crucial to determining how effectively such a role can be harnessed. As well as exploring the various roles undertaken by forensic accountants based in the US and other selected common law jurisdictions, this publication aims to contribute to the extant literature on how the role of a forensic professional can be effectively utilized and applied, both from common law and comparative based perspectives - which involve selected jurisdictions that constitute the focus of this study. In so doing it also highlights how a greater degree of accountability and transparency can be introduced into the financial reporting, as well as legal process.
    Keywords: accountability; transparency; common law systems; forensic accounting
    JEL: E6 G2 G3 K2 M4
    Date: 2015
  9. By: Benson, Alan (University of Minnesota); Sojourner, Aaron J. (University of Minnesota); Umyarov, Akhmed (University of Minnesota)
    Abstract: In two experiments, we examine the effects of employer reputation in an online labor market (Amazon Mechanical Turk) in which employers may decline to pay workers while keeping their work product. First, in an audit study of employers by a blinded worker, we find that working only for good employers yields 40% higher wages. Second, in an experiment that varied reputation, we find that good-reputation employers attract work of the same quality but at twice the rate as bad-reputation employers. This is the first clean, field evidence on the value of employer reputation. It can serve as collateral against opportunism in the absence of contract enforcement.
    Keywords: labor, personnel, contracts, online labor markets, job search, screening, reputation, online ratings
    JEL: L14 M55 J41 J2 L86 D82 K12 K42
    Date: 2015–11
  10. By: Jan Behringer (IMK and University of Wurzburg, Germany); Till van Treeck (University of Duisburg-Essen and IMK, Germany)
    Abstract: We investigate whether changes in income distribution can explain current account developments in a sample of 20 countries for the period 1972-2007. We analyze the relationship between the personal and the functional income distribution in our sample, before disentangling their effects on the household and corporate financial balances and the current account. We find that rising (top-end) personal inequality leads to a decrease of the private household financial balance and the current account, controlling for standard current account determinants. Moreover, an increase in corporate net lending or, alternatively, a fall in the wage share leads to an increase in the current account, ceteris paribus. While we remain agnostic as to the underlying theoretical explanations of our findings, they are consistent with consumption externalities on the one hand and with incomplete piercing of the corporate veil or the underconsumptionist view on the other hand. We show that changes in personal and functional income distribution have contributed considerably to the widening of current account balances, and hence to the instability of the international economic system, prior to the global financial crisis starting in 2007.
    Keywords: Income distribution, current account determinants, sectoral financial balances, global financial crisis.
    JEL: D31 D33 E21 F41 G3
    Date: 2015–10
  11. By: Ricardo Reis
    Abstract: Portugal’s adjustment program in 2010-14 under the troika was extensive and aimed at addressing its large debt and anemic growth, so it may serve as a blueprint for reforms in the Eurozone. This paper argues that, conditional on a diagnosis of the underlying problems of the Portuguese economy, the adjustment program failed to deliver in definitely addressing the problems in public finances, but succeeded in leaving promising signs of reform in the structure of the economy. In particular, on the negative side, public debt is still high, primary surpluses improved modestly, and public spending barely fell as the problem of ever-rising pension payments remained unsolved. On the positive side, unemployment fell sharply, exports and the current account balance rose, capital and labor reallocated to more productive and tradable sectors, and the country is growing faster than the EU for the first time in 15 years.
    JEL: N0 R14 J01 E6
    Date: 2015

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