nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2017‒04‒23
eight papers chosen by

  1. Does Impaired Loss Accounting Affect Firms' Investment? Evidence from Japan (Japanese) By UESUGI Iichiro; NAKAJIMA Kentaro; HOSONO Kaoru
  3. THE TAX SYSTEM OF BELARUS By Kirill Shakhnov
  4. Capital taxation : principles , properties and optimal taxation issues By Céline Antonin; Vincent Touze
  5. A live audit to enable participants to enhance their feedback practice to promote self-regulated learning. By Ruth Bavin; Kelly McAteer
  6. Taxation of Swedish Firm Owners: The Great Reversal from the 1970s to the 2010s By Henrekson, Magnus
  7. The taxation of extractive industries: Mining By James M. Otto
  8. Productivity change of Ethiopian banks: A malmquist productivity index approach By Lema, Tadesse Zenebe

  1. By: UESUGI Iichiro; NAKAJIMA Kentaro; HOSONO Kaoru
    Abstract: Asset impairment accounting is a procedure that allows an abrupt decrease of a firm's asset value in case of severe damage. When impairment of the asset occurs, the firm has to decrease its value in the balance sheet and recognize a loss in the income statement. In Japan, many policymakers argued that enforcing such an accounting procedure during a period of severe economic downturn would decrease firms' collateral value and further deteriorate their procurement environment. In contrast, a number of theoretical and empirical studies emphasize the positive aspects of this accounting procedure. This paper examines these arguments by investigating the impact of the introduction of fixed asset impairment accounting on their capital investment and land transactions to find the following. First, there exists no significant difference in the capital investment and land purchases between firms that reported impaired asset losses and those that did not. Second, there exists no significant difference in the way unrealized asset losses affect capital investment between both sets of firms. Third, the land sales ratio is higher among firms that reported impaired losses, especially when they have increased their profit. The result is consistent with the firms'motivation to decrease their taxable income by selling land and realizing the capital losses once they have impaired losses in their balance sheets.
    Date: 2017–04
  2. By: Mustafa Göktu? Kaya (Tax Inspectors Association); Perihan Hazel Kaya (Selcuk University)
    Abstract: The country, where the individuals and institutions benefit from public services paying less taxes outside the country, is called tax haven countries.These countries is used as part of economic activities and they are preferred as the center of financial affairs so the phenomenon of interstate competition become a current issue. International tax competition is a tax policy which implementing that economic activity that occurred in another country to take his own country putting a lower tax rate.When taken out the country known as a tax haven it is said that this countries are too small and some of them? name and location in the map are unknown.The purpose of the study is to find out the relationship between of tax competition and tax haven in the World and Turkey. In this direction, firstly on the conceptual framework tax competition and tax havens issues will be discussed. Secondly, the effects of the relationship between tax competition and tax havens on fiscal policy will be examined. Finally, studies conducted on the fight against tax competition and tax havens in the World and Turkey will be examined.
    Keywords: Tax Competition, Tax Haven, Fiscal Policy, Turkey, Tax Haven Countries
    JEL: E00 E21
  3. By: Kirill Shakhnov
    Abstract: This paper provides a comprehensive analysis of taxation in Belarus. I compare the dynamics of the tax rates and the tax revenue in Belarus to the world averages and to other countries of the Eurasian Union. The paper studies the the harmonization of the rates within the union and the efficiency of tax collection. Finally, the two possible reforms of taxation in Belarus and its possible consequences are discussed: an increase of VAT; reintroduction of the progressive personal income tax.
    Keywords: Flat Tax, VAT, Efficiency, Eurasian Union
    JEL: H21 F62
    Date: 2016–10
  4. By: Céline Antonin (Observatoire français des conjonctures économiques); Vincent Touze (Observatoire français des conjonctures économiques)
    Abstract: This article addresses the issue of capital taxation relying on three levels of analysis. The first level deals with the multiple ways to tax capital (income or value, proportional or progressive taxation, and the temporality of the taxation) and presents some of France's particular features within a heterogeneous European context. The second area of investigation focuses on the main dynamic properties generated by capital taxation: the principle of equivalence with a tax on consumption; the issue of double taxation if it targets taxation of nominal income; neutrality of the uniform tax on the capital value; lastly, the risk of confiscatory taxation if there is a disjunction between taxation of the value and the income. The final level ofanalysis consists in assessing the debate on the optimal level of capital taxation drawing on the lessons in the literature. These discussions are organized into eight themes: (1) double taxation, (2) optimal growth, (3)property, (4) tax competition, (5) supervisory arguments, (6) measuring capital gains, (7) complexity and (8) fiscal stability
    Keywords: Taxation; Savings; Accumulation of capital
    JEL: D90 E21 H20
    Date: 2017–03
  5. By: Ruth Bavin (University of Central Lancashire); Kelly McAteer (University of Central Lancashire)
    Abstract: This session will provide the opportunity for reflection on individual and institutional feedback practices within the HE sector. The session allows participants to complete a live online self-assessment audit of their current feedback practices. The audit questions are based on Nicol and Macfarlane-Dick?s 7 principles (2006), and these are mapped to the stages of assessment (pre, during and post). These questions will consider the extent to which teachers are supporting students during the production of an assessment (Boud, 2000). Following the audit, the data regarding the trends of participants? feedback strengths and weaknesses will be available to provide an opportunity for group discussion. This will facilitate the group in sharing examples of good feedback practice from the HE institutions represented. The Meetoo app will allow real-time impromptu questioning to gather further qualitative responses. Finally, participants will be asked to consider whether their assessment is ?fit for purpose? and suitably aligned to the learning outcomes (Biggs and Tang, 2007). Following the session, the individual audit will be available and linked with practical suggestions for the enhancement of practice from the HEA Feedback Toolkit (2013). This will provide opportunity for participants? continued reflection and could benefit cross-programme discussions on feedback practices within institutions on their return. All data collected within this session will contribute to our ongoing research project, but will remain anonymous and confidential. Session Activities and Approximate Timings?Participants? will take part in a live online self-assessment audit based on Nicol and Macfarlane-Dick?s (2006) 7 principles of good practice to encourage self-regulated learners. The Meetoo conference app will be utilised (10-14 mins). ?Small group discussion reflecting on individual strengths and weaknesses of good feedback practice (10 mins). ?Facilitated group discussions around the trends available from the live audit (20 mins) with opportunities for smaller focus group discussion on feedback practices within the different stages of curriculum delivery.?Complete session evaluation using the Meetoo conference app (1 mins).?Data related to individual?s strengths and weaknesses highlighted through the audit will be available to individual participants to enable the completion of an action plan on return to their institutions (Day 2). ?With the permission of the participants, the audit data will contribute to our ongoing research on identifying opportunities for enhancing feedback to encourage self-regulated learning.
    Keywords: feedback; reflection; self-regulated learning; evaluation; assessment
    JEL: I23
  6. By: Henrekson, Magnus (Research Institute of Industrial Economics (IFN))
    Abstract: By the late 1960s, real effective taxation of income from individual firm owner­ship in Sweden approached 100 percent. A series of tax reforms initiated in the late 1970s reversed this situation. This paper has a threefold purpose: (1) to elucidate the thinking behind the vision of creating a largely market-based system without wealthy capitalists and how that vision guided the design of the tax system; (2) to outline and evaluate the numerous changes in the tax code made since the late 1970s, the empirical and intellectual basis of these changes, and the implications of these changes for the taxation of individual firm ownership; and (3) to compare the size of the largest individual wealth holdings in the mid-1960s to their equivalents in the 2010s and discuss in what sense and to what extent the general public’s views have changed regarding sizeable individual income streams and wealth derived from business activity. Today, the tax code favors already wealthy individuals. By contrast, high labor income taxation combined with a high valuation of existing assets renders wealth accumulation difficult for persons with no initial wealth.
    Keywords: Owner-level taxation; Entrepreneurship; Institutions; Sweden; Tax policy
    JEL: H20 H32 L26 N44
    Date: 2017–04–07
  7. By: James M. Otto
    Abstract: The taxation of the mining industry varies considerably from nation to nation. This paper reflects on the evolving use of various taxation approaches applied by governments to the mining sector. It includes a description of the principal tax types and investment tax incentives and briefly describes the main policy issues pertaining to mineral sector taxation. The author concludes that governments when devising mineral sector fiscal systems should carefully assess their fiscal options in a holistic approach that anticipates commodity price cycles, and that mining companies should anticipate fiscal system changes that reflect the evolution of the political economy in which they operate.
    Date: 2017
  8. By: Lema, Tadesse Zenebe
    Abstract: This study evaluates the productivity change of the Ethiopian banking industry. For this purpose secondary data on input variables (interest expense, non-interest expense and deposit) and output variables (interest income, non-interest income and loan) are collected from the audited balance sheets and income statements of the banks under study. A Malmquist productivity index approach is employed to evaluate the productivity change of the Banks. The results of the study confirmed that; Abay bank, Construction and Business Bank and Commercial Bank of Ethiopia exhibited a productivity regress. For Abay Bank productivity regress is due to the technical change component while for Construction and Business bank and Commercial Bank of Ethiopia productivity regress is due to the efficiency change component. Thus, Abay bank should invest more on technological development and innovation while Construction and Business bank and Commercial Bank of Ethiopia should improve their resource use efficiency. The efficiency change component is split into pure technical efficiency component and scale efficiency component and the results revealed that Construction and Business bank and United bank exhibited productivity regress in the pure technical efficiency component while Construction and Business bank, Commercial bank of Ethiopia, Nib international bank and Wegagen bank exhibited productivity regress in the scale efficiency change component. Thus, Construction and Business bank and United bank should improve their managerial capacity and Construction and Business bank, Commercial Bank of Ethiopia, Nib international bank and Wegagen bank should adjust their scale of operation.
    Keywords: Productivity Change, Commercial Banks, Malmquist Productivity Index, Technical Efficiency Change, Technological Change
    JEL: D24
    Date: 2016–12

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.