nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2019‒06‒17
seven papers chosen by

  1. Proposal for a structured approach to internal audit of the treasury cycle By Bentalha Badr; Aziz Hmioui; Lhoussaine Alla
  2. Tax Policy for Innovation By Bronwyn H Hall
  3. The treatment of Intellectual Property in the National Accounts By Robin Lynch
  4. Innovation in Public Sector Accounting: a New Role for Local Governments? By Francesco Badia; Tiziana Landi; Valentina Montin
  5. "Back-Loaded" Tax Subsidies for Saving, Asset Location and Crowd-Out: Evidence from Tax-Free Savings Accounts By Adam M. Lavecchia
  6. Regulation, protest, and spatial economics By Wang, Yusiyu
  7. Republic of Armenia; Fiscal Transparency Evaluation By International Monetary Fund

  1. By: Bentalha Badr (E.N.C.G - Ecole nationale de commerce et de gestion - Sidi Mohammed Ben Abdellah University); Aziz Hmioui (E.N.C.G - Ecole nationale de commerce et de gestion - Sidi Mohammed Ben Abdellah University); Lhoussaine Alla (E.N.C.G - Ecole nationale de commerce et de gestion - Sidi Mohammed Ben Abdellah University)
    Abstract: The objective of this work is to analyze the role and the specificities of the internal audit of the treasury. Indeed, against a backdrop of profound changes in the new international economic environment, namely economic globalization, financial globalization and significant regulatory and technological changes, it has become necessary for the company to include control of its performance, particularly through internal audit practices. For this reason, internal audit is emerging as a new model for managing corporate performance. After having presented the theoretical and conceptual approaches concerning internal audit and corporate treasury, we will approach via a practical analysis the internal audit of the treasury function to conceptualize an empirical model of performance management via an internal audit of the function of the treasury.
    Abstract: L'objectif de ce travail est d'analyser le rôle et les spécificités de l'audit interne de la trésorerie. En leffet, dans un contexte mouvementé par des changements profonds du nouvel environnement économique international, à savoir, la mondialisation économique, la globalisation financière et les modifications réglementaires et technologiques importantes, il est devenu nécessaire pour l'entreprise d'inscrire dans ces orientations la maitrise de sa performance notamment par des pratiques d'audit interne. Pour cette raison l'audit interne apparait comme un nouveau modèle de pilotage de la performance des entreprises. Après avoir présenté les approches théoriques et conceptuelles concernant l'audit interne et la trésorerie des entreprises nous allons aborder via une analyse pratique l'audit interne de la fonction de la trésorerie pour conceptualiser un modèle empirique de pilotage de la performance via un audit interne de la fonction de la trésorerie.
    Keywords: Treasury,internal audit,internal audit of the treasury function,cash cycle,performance,Trésorerie,audit interne,audit interne de la fonction de la trésorerie,cycle de la trésorerie,performance.
    Date: 2018
  2. By: Bronwyn H Hall
    Abstract: A large number of countries around the world now provide some kind of tax incentive to encourage firms to undertake innovative activity. This paper presents the policy rationale for these incentives, discusses their design and potential effectiveness, and reviews the empirical evidence on their actual effectiveness. The focus is on the two most important and most studied incentives: R&D tax credits and super deductions, and IP boxes (reduced corporate taxes in income from patents and other intellectual property).
    Keywords: R&D tax credit, patent box, super deduction, IP box, tax subsidy, innovation
    JEL: H25 O32 O38
    Date: 2019–06
  3. By: Robin Lynch
    Abstract: The paper identifies flaws in the treatment of Intellectual Property as an intangible asset in the current national accounts international standards. It is proposed that the treatment should revert to that of the 1968 System of National Accounts (SNA), where payments for access to Intellectual Property were classified as property income (income transfers) and not as payment for services as in SNA 2008 and the European System of Accounts (ESA) 2010. This dramatic change in treatment has had unfortunate results, most visibly in the case of the revision to GDP estimates for Ireland. In 2016, the estimate for Ireland’s 2015 annual GDP growth was revised upwards from 7.8% to 26.3%. This was caused mainly by a relocation of a large multinational’s registration of Intellectual Property from mainland Europe. The associated access payments were treated as a set of new exports of services, with the subsequent large increase in the GDP level and growth measures of the Irish economy. This paper sets out how the current standards lead to this widely criticised change and proposes a model which is consistent with the 1968 SNA treatment.
    Keywords: system of national accounts, intellectual property, intangibles
    JEL: E01 E22
    Date: 2019–06
  4. By: Francesco Badia; Tiziana Landi; Valentina Montin
    Abstract: The research aims to analyze how local governments can adopt accounting innovations to reinvent their role. This report attempts to define the importance of reducing information asymmetry among citizens, policy-makers, and public managers, as well as how accounting system reform can support the process. This paper makes use of a case study based on the realization of a medium-sized Italian municipality’s consolidated financial statements, exploiting the action research method. The analysis outlines that, on one hand, the development of new accounting tools can enhance organizational awareness, while on the other hand, there are some possible limits regarding internal and external accountability.
    Keywords: Accounting innovations; Consolidated financial statements; Accountability
    JEL: H72 M48
    Date: 2019–06–05
  5. By: Adam M. Lavecchia
    Abstract: This paper presents estimates of the causal effect of Canadian Tax-Free Savings Accounts (TFSAs) balances on household saving and portfolio asset location choices. Contributions to TFSAs are not tax-deductible but capital income earned in the account accrues tax-free and withdrawals are not taxed. Using a difference-in-differences research design that exploits the sharp change in a family’s cumulative TFSA contribution room that arises when a family member turns 18 years old, I find that a 10 percent increase in TFSA balances reduces taxable financial asset holdings by 2.5 percent with no statistically significant effect on holdings in traditional tax-deferred accounts. I also find that the crowd-out in taxable asset holdings is driven by families reducing the share of their taxable financial assets held in fixed income securities
    Keywords: Tax-preferred savings accounts; back-loaded versus front-loaded subsidies; Tax-Free Savings Accounts; crowd-out
    JEL: D14 H31
    Date: 2019–06
  6. By: Wang, Yusiyu (Tilburg University, School of Economics and Management)
    Abstract: The three essays collected in this PhD thesis examine how regulatory, political, and social environments shape capital markets. The first essay studies how regulation affects the behavior of financial analysts. The second essay studies how a political event affects investors’ political beliefs and firm disclosures. The third essay studies how spatial differences in the audit office location can explain variations in the going-concern opinions of auditors.
    Date: 2019
  7. By: International Monetary Fund
    Abstract: Armenia’s fiscal transparency practices have benefitted from public financial management reforms over the last decade, and several planned reforms will bring further progress. Fiscal forecasts and budgets have become more forward looking and policy oriented, with the introduction of a medium-term expenditure framework (MTEF), improved fiscal objectives, and a performance budgeting system. Fiscal risk disclosure, though fragmented, has gradually improved, in particular, in macrofiscal risk assessment, and a PPP law is being drafted. The accrual accounting reform will significantly improve the coverage and quality of the budget execution reports and fiscal statistics that already provide timely and frequent information about the financial position of the government.
    Date: 2019–05–15

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