nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2021‒03‒29
nine papers chosen by
Alexander Harin
Modern University for the Humanities

  1. IFRS 17 : The level of aggregation in the accounting representation of the insurance business By Pierre-Emmanuel Thérond
  2. Corporate Governance and Earnings Management: Empirical Evidence of the Distress and Non-Distress Companies By Nico Alexander
  3. The Influence of IFRS Adoption By Xu, Feng C.
  4. Taxation challenges of population ageing: comparative evidence from the European Union, the United States and Japan By Fructuoso Borrallo; Susana Párraga-Rodríguez; Javier J. Pérez
  5. The Moderating Effect of Board Independence on the Relationship between Family Ownership and Corporate Sustainability Reporting In Malaysia By Zainab Aman
  6. Analysis of Factors Affecting Fraudulent Financial Reporting with Independent Commissioners as Moderation Variable By Andalia
  7. Learning from revisions: a tool for detecting potential errors in banks' balance sheet statistical reporting By Francesco Cusano; Giuseppe Marinelli; Stefano Piermattei
  8. ANALISIS FAKTOR-FAKTOR YANG BERPENGARUH TERHADAP KETERANDALAN DAN KETEPATWAKTUAN PELAPORAN KEUANGAN BERBASIS AKRUAL PADA PEMDA KKT By , Sukriyadi
  9. Central Bank Digital Currency and Balance Sheet Policy By Martina Fraschini; Luciano Somoza; Tammaro Terracciano

  1. By: Pierre-Emmanuel Thérond (SAF - Laboratoire de Sciences Actuarielle et Financière - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon)
    Abstract: Publiée en mai 2017 par l'IASB, IFRS 17 : Contrats d'assurance résulte d'un des projets les plus longs qu'ait eu à mener le normalisateur comptable international. Cela est une des marques de la difficulté de concevoir des principes d'évaluation des provisions correspondantes aux engagements d'assurance, et surtout à la reconnaissance du produit de ces activités et, in fine, du résultat qui en découle. Difficultés liées au business model si particulier de cette activité : un business model marqué par l'inversion du risque de production et une grande hétérogénéité de produits, notamment en assurance vie. Dans ce contexte, et compte tenu des principes d'évaluation des provisions qu'a retenus l'IASB, la question du niveau d'agrégation, i.e. de l'unité de comptabilisation à laquelle le revenu doit être déterminé s'est imposée comme cruciale. En effet, l'articulation de préoccupations comptables naturelles telles que le non-report de pertes attendues ou encore le non-report de gains au-delà du terme des contrats auxquels ils se rapportent se voient confrontés au business model de l'assurance vie fondé autour du principe de la mutualisation et du partage du sort. Ainsi, s'agissant des contrats d'assurance vie avec participation aux bénéfices discrétionnaire, la notion de groupe de contrats, telle que définie par l'IASB, associée aux principes d'évaluation des provisions conduit à une représentation artificielle et potentiellement très volatile de la profitabilité de ces contrats. Contrats qui partagent des éléments sous-jacents et une mutualisation intergénérationnelle. Dans ce travail, nous mettons en évidence les limites du modèle comptable proposé par l'IASB et, en particulier, de sa disposition de considérer des groupes de contrats participatifs correspondant à des cohortes (a minima) annuelles pour la détermination de la CSM, et donc de la maille à laquelle le revenu est comptabilisé. En conclusion, nous proposons, pour certains types de contrats participatifs, une évolution normative qui consisterait à lever cette exigence de regroupement par cohortes de souscription. Ce qui, sans conduire à une perte d'information pour les utilisateurs d'états financiers, serait d'une plus grande cohérence avec le business model de ces activités et conduirait à éviter des coûts importants chez les préparateurs. Coûts qui n'ont pas de contrepartie en matière de gains d'information par les utilisateurs des états financiers.
    Date: 2020–04
    URL: http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02965146&r=all
  2. By: Nico Alexander (Trisakti School of Management, Jakarta, Indonesia Author-2-Name: Theresia Author-2-Workplace-Name: Trisakti School of Management, Jakarta, Indonesia Author-3-Name: Dewi Kurnia Indrastuti Author-3-Workplace-Name: Trisakti School of Management, Jakarta, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective - The purpose of this research is to obtain empirical research on the effect of corporate governance on earnings management in distressed and non-distressed companies. Corporate governance in this research is measured by independent board, audit committee, board of commissioners, institutional ownership and number of board commissioner meetings. The research predicts that corporate governance has a negative effect on earnings management either both in distressed and non-distressed companies. Methodology/Technique - This research uses 309 manufacturing companies listed on the Indonesian Stock Exchange and the data was obtained using purposive sampling method during 2016 until 2018. Of the 309 respondents in the sample, 287 are distressed companies and 22 are non-distressed companies. The data was analyzed using a multiple regression method. Findings - The empirical results show that commissioner board and institutional ownership have a negative effect on earnings management in non-distressed companies but in distressed companies, corporate governance does not have an effect on earnings management. This research shows that distressed companies, corporate governance cannot minimize earnings management practices because to maintain the company as a going concern, management will do earnings management to ensure stakeholders' trust to encourage further investment in the company. In non-distressed companies, corporate governance can minimize earnings management practices because the company is in a good financial condition, so they don't need to do earnings management. Additionally, in order to ensure stakeholders' trust, the company will strengthen its' corporate governance mechanisms. Type of Paper - Empirical.
    Keywords: Financial Distress; Earnings Management; Non-Financial Distress; Indonesia Stock Exchange.
    JEL: M41 G34 J33 K22
    Date: 2021–03–31
    URL: http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr195&r=all
  3. By: Xu, Feng C.
    Abstract: This paper aims to present a thorough theoretical coverage to the subject studied by focusing on the concepts in companies as general, and accounting disclosure, test the selected hypothesis, obtain satisfying results to the research in an appropriate manner that consists with the problem studied and hypotheses, and find a reasonable answer to main question that is (Does IFRS adoption in the large banks improve financial reporting quality?) based on the main hypotheses which are financial reporting quality has not improved after IFRS adoption in the large banks, and financial reporting quality has improved after IFRS adoption in the large banks.
    Date: 2021–03–07
    URL: http://d.repec.org/n?u=RePEc:osf:osfxxx:drxue&r=all
  4. By: Fructuoso Borrallo (Banco de España); Susana Párraga-Rodríguez (Banco de España); Javier J. Pérez (Banco de España)
    Abstract: Using microdata from the European Union, the United States and Japan, we show that the elderly bear lower effective tax rates than the young. This difference is explained by the income gap and the different generational consumption baskets. However, tax reforms enacted in recent decades have led to an increase in the relative contribution of the elderly to public finances.
    Keywords: population ageing, tax collection, direct taxes, indirect taxes
    JEL: H2 H24 H25 J14
    Date: 2021–01
    URL: http://d.repec.org/n?u=RePEc:bde:opaper:2102e&r=all
  5. By: Zainab Aman (Department of Accounting and Finance Kolej Universiti Islam Antarabangsa Selangor 43000 Kajang Selangor Malaysia Author-2-Name: Norman Saleh Author-2-Workplace-Name: Faculty of Economic and Management Universiti Kebangsaan Malaysia 43600 Bangi Selangor Malaysia Author-3-Name: Zaleha Abdul Shukur Author-3-Workplace-Name: Faculty of Economic and Management Universiti Kebangsaan Malaysia 43600 Bangi Selangor Malaysia Author-4-Name: Romlah Jaafar Author-4-Workplace-Name: Faculty of Economic and Management Universiti Kebangsaan Malaysia 43600 Bangi Selangor Malaysia Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective - The objective of this paper is to investigate the relationship between family ownership and corporate sustainability reporting to determine how the role of board independence affects the relationship between those variables within Malaysian listed companies. Methodology/Technique - The annual reports of 771 listed companies from 2014 to 2016 were analyzed using content analysis methods. The study uses agency theory to develop the hypotheses. Findings - The study found that family ownership is negatively related to corporate sustainability reporting. The finding shows that independent directors are unable to influence the relationship between family ownership and corporate sustainability reporting. The findings of this study are expected to provide insight to authorities in relation to the factors that could enhance corporate sustainability reporting primarily in family-owned companies. Novelty - Previous studies have only focused on environmental and social dimensions of corporate sustainability, whilst this study addresses all the 3 dimensions of sustainability (economic, environmental, and social). This paper is one of the first attempts to investigate the roles of board independence on the relationship between family ownership and corporate sustainability reporting in Malaysia. Type of Paper - Empirical.
    Keywords: Sustainability Reporting; Family Ownership; Corporate Governance; Independent Director
    JEL: M14 M41
    Date: 2021–03–31
    URL: http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr196&r=all
  6. By: Andalia (Department of Accounting, Hasanuddin University, Indonesia Author-2-Name: Amiruddin Author-2-Workplace-Name: Department of Accounting, Hasanuddin University, Indonesia Author-3-Name: Grace T. Pontoh Author-3-Workplace-Name: Department of Accounting, Hasanuddin University, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective - This study aims to examine and analyze the effect of pressure, opportunity, rationalization, ability and arrogance on fraudulent financial reporting with independent commissioners as the moderating variable. Methodology/Technique - The object of this research is all companies listed on the Indonesian Stock Exchange during 2019. The research sample was obtained through purposive sampling method and resulted in 215 companies. The analysis technique used is multiple regression analysis and Moderated Regression Analysis (MRA). Findings - The results show that pressure, opportunity, rationalization, ability and arrogance had a significant effect on fraudulent financial reporting. The results of the moderation regression analysis show that independent commissioners moderate the effect of pressure and arrogance on fraudulent financial reporting. Meanwhile, independent commissioners did not moderate opportunities, rationalization, and capacity for fraudulent financial reporting. Novelty - This research contributes to the pentagon fraud theory, which proves that the elements contained in this theory can be used as a basis for analyzing fraud committed by companies, and contributing to the company so that the company's internal control is improved and the presence of an independent board of commissioners is not only a fulfillment of the company's internal control. regulations made by the IDX. Type of Paper - Empirical.
    Keywords: Pressure; Opportunities; Rationalization; Arrogance; Fraudulent Financial Reporting
    JEL: M41 G32 M21 M41 M42
    Date: 2021–03–31
    URL: http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr193&r=all
  7. By: Francesco Cusano (Bank of Italy); Giuseppe Marinelli (Bank of Italy); Stefano Piermattei (Bank of Italy)
    Abstract: Ensuring and disseminating high-quality data is crucial for central banks to adequately support monetary analysis and the related decision-making process. In this paper we develop a machine learning process for identifying errors in banks’ supervisory reports on loans to the private sector employed in the Bank of Italy’s statistical production of Monetary and Financial Institutions’ (MFI) Balance Sheet Items (BSI). In particular, we model a “Revisions Adjusted – Quantile Regression Random Forest” (RA–QRRF) algorithm in which the predicted acceptance regions of the reported values are calibrated through an individual “imprecision rate” derived from the entire history of each bank’s reporting errors and revisions collected by the Bank of Italy. The analysis shows that our RA-QRRF approach returns very satisfying results in terms of error detection, especially for the loans to the households sector, and outperforms well-established alternative outlier detection procedures based on probit and logit models.
    Keywords: banks, balance sheet items, outlier detection, machine learning
    JEL: C63 C81 G21
    Date: 2021–03
    URL: http://d.repec.org/n?u=RePEc:bdi:opques:qef_611_21&r=all
  8. By: , Sukriyadi
    Abstract: This study aims to test the factors that influence reliability and timeliness of local government financial reporting. The factors that influence reliability and timeliness are commitment organization, human resource capacity, Internal Control of Accounting, information technology utilization, regional financial oversight, and the implementation of government accounting standards (SAP) to the reliability and timeliness of local government financial reporting accrual basis in SKPD Kepulauan Tanimbar regency. This research was a quantitative research study. amounting to 130 people, The was processed using SPSS with multiple linier regressions. Based on the analysis results, obtained that the commitment organization, human resource capacity, regional financial oversight, and the implementation of government accounting standards (SAP) influential in raising the reliability and timeliness of the financial reporting accrual basis in SKPD, with a significance level of 0.000 < 0.05. While on the analysis results internal control of accounting, and information technology utilization no affect significant on reliability and timeliness of local government financial reporting.
    Date: 2021–01–31
    URL: http://d.repec.org/n?u=RePEc:osf:thesis:3qnau&r=all
  9. By: Martina Fraschini (University of Lausanne, HEC; Swiss Finance Institute); Luciano Somoza (University of Lausanne, HEC; Swiss Finance Institute); Tammaro Terracciano (University of Geneva, GFRI; Swiss Finance Institute)
    Abstract: This paper studies a stylized economy in which the central bank can hold either treasuries or risky securities against central bank digital currency (CBDC) deposits. The key mechanism driving the results is the reduction in bank deposits that follows the introduction of a CBDC and its impact on the banking sector. With CBDC funds invested in treasuries, the central bank channels funds back to the banking sector via open market operations and the introduction of a CBDC is neutral, consistently with the equivalence theorem of Brunnermeier and Niepelt (2019). However, it is not neutral when accounting for liquidity requirements, quantitative easing, or for CBDC deposits held against risky securities. We reach two main conclusions. First, current monetary policy regimes do matter for CBDC equilibrium effects. Second, there is a trade-off between bank lending to the economy and taxes, as holding risky assets against CBDC deposits leads to lower expected taxes and lower bank lending.
    Keywords: CBDC, central banking, monetary policy, QE
    JEL: E4 E5 G2
    Date: 2021–03
    URL: http://d.repec.org/n?u=RePEc:chf:rpseri:rp2125&r=all

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