nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2019‒06‒10
five papers chosen by

  1. Development of approaches to the introduction of budgeting for activities in the performance of public functions and the provision of public services By Dmitriev, Mikhail (Дмитриев, Михаил); Krapil, Valeriy (Крапиль, Валерий); Kalmykov, Nikolay (Калмыков, Николай)
  2. Calibration of DCF valuation in litigation: The case of HQ By Jennergren, Peter
  3. Taxing vehicles, fuels, and road use: Opportunities for improving transport tax practice By Kurt van Dender
  4. Good or bad tax? Assessing the early effects of the progressive and higher personal income tax in North Macedonia By Despina Tumanoska; Bojana Josifovska; Marjan Petreski
  5. How to Design a Financial Management Information System; A Modular Approach By Gerardo Uña; Richard I Allen; Nicolas M Botton

  1. By: Dmitriev, Mikhail (Дмитриев, Михаил) (The Russian Presidential Academy of National Economy and Public Administration); Krapil, Valeriy (Крапиль, Валерий) (The Russian Presidential Academy of National Economy and Public Administration); Kalmykov, Nikolay (Калмыков, Николай) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The work is devoted to the adaptation of accounting and budgeting methods by type of activity (ABC / ABB) to the practice of Russian state management in order to increase efficiency and use of resources. The paper examines: the degree of applicability of the ABC / ABB methods to the Russian practice of public administration; the state of the cost accounting system in the public sector and its compatibility with the requirements of the ABC; analysis of the executive authorities for the possible implementation of pilot projects for the implementation of ABC.
    Keywords: Administrative processes, public services, public spending, cost management, management efficiency, accounting, management accounting, functional cost analysis, process budgeting
    Date: 2019–05
  2. By: Jennergren, Peter (Dept. of Accounting)
    Abstract: HQ was a medium-sized Swedish banking group whose banking and fund management licenses were revoked in 2010, after losses in trading in equity derivatives for its own account. The parent company of the HQ group sued the board members and the audit firm and the responsible auditor for damages. NN was an expert witness for plaintiff and submitted a DCF valuation of HQ in a but-for scenario, where the banking group would have survived. This valuation is an interesting example of choice of assumptions to obtain a specific result, i. e., calibration. It appears that the purpose of the DCF valuation was to legitimize a value that had been set in advance. The author served as expert witness to defendant, with the task of rebutting NN. This paper is based on expert reports by NN and the author.
    Keywords: Valuation; litigation; DCF model; calibration; dueling experts; legitimation
    JEL: G31 G33 M41
    Date: 2019–05–28
  3. By: Kurt van Dender
    Abstract: This paper discusses the main external costs related to road transport and the design of taxes to manage them. It provides an overview of evolving tax practice in the European Union and the United States and identifies opportunities for better alignment of transport taxes with external costs. There is considerable scope for improving transport tax practice, notably by increasing the use of taxes based on road use. Distance charges offer great promise in delivering more efficient road transport. In heavily congested areas, targeted charges are a cost-effective way of reducing congestion. Fiscal objectives provide an impetus for change as improving vehicle fuel efficiency and fleet penetration of alternative fuel vehicles erode traditional tax bases, particularly those relating to fossil fuel use. A gradual shift from an energy-based approach towards distance-based transport taxes has the potential to establish a stable tax base in the road transport sector in the long run.
    Keywords: congestion, congestion charging, distance-charges, external costs, fuel taxes, pollution, road transport
    JEL: H23 Q58 R4 R41 R48
    Date: 2019–06–05
  4. By: Despina Tumanoska; Bojana Josifovska; Marjan Petreski
    Date: 2019–06
  5. By: Gerardo Uña; Richard I Allen; Nicolas M Botton
    Abstract: A well-functioning financial management information system (FMIS) provides timely, reliable, and comprehensive reports that support implementation of the government’s fiscal policies and fiscal rules, and the formulating, controlling, monitoring, and executing of the budget. The architecture of FMISs has undergone a transformation since these systems were first developed in the 1980s. Rather than attempting to cover all or most public financial management (PFM) functions, many FMISs now focus on a few core functions such as accounting and reporting, budget execution, and cash management. Yet a survey of 46 countries shows that many face severe challenges in transforming their FMIS into an effective tool of fiscal governance. These challenges relate to weaknesses in the system’s core functions, its institutional coverage, the information technology platforms it uses, and the ease of sharing data with other IT systems. This How to Note discusses how to address these chal-lenges. Replacing an FMIS with an entirely new system may not be an optimal strategy. By utilizing the latest technology, a better approach may be to update or replace one or more core modules of the system: the so-called modular approach. Implementation of an effective FMIS, however, depends on two critical preconditions: strong political motivation and commitment, and the system’s ability to meet ongoing and anticipated PFM needs.
    Keywords: Financial management information systems;Financial Management Information Systems, fiscal policy, fiscal rules, accounting, reporting, budget execution, cash management
    Date: 2019–05–15

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NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.