nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2022‒07‒11
eight papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Sistem Manajemen Operasional Pada Kantor Akuntan Publik Drs. Bambang Mudjiono & Widiarto Dalam Meningkatkan Pelayanan Kantor By Kurniawan, Rachmad Risqy
  2. Global Profit Shifting of Multinational Companies: Evidence from CbCR Micro Data By Clemens Fuest; Stefan Greil; Felix Hugger; Florian Neumeier
  3. Georgia: Technical Assistance Report-Updating the Balance Sheet and Quantifying Fiscal Risks From Climate Change By International Monetary Fund
  4. Suriname: Technical Assistance Report on Government Finance Statistics Mission (December 6-17, 2021) By International Monetary Fund
  5. Impacts of New International Tax System on Multinational Firms' FDI By Yea, Sangjun
  6. Innovation to Keep or to Sell and Tax Incentives By Colin Davis; Laixun Zhao
  7. Construct validity in accruals quality research By Nezlobin, Alexander; Sloan, Richard G.; Giedt, Jenny Zha
  8. Legacy Debt in Public Pensions: A New Approach By Jean-Pierre Aubry

  1. By: Kurniawan, Rachmad Risqy
    Abstract: The purpose of this research is to describe the operational management function of Drs. Bambang Mudjiono & Widiarto which consists of three parts consisting of operational planning, operation scheduling and operation control. In operations planning there are five important elements, namely capacity planning, site planning, layout planning, quality planning and method planning. The research method used in this research is descriptive qualitative analysis to show a general description of office operational management control. The data collection technique was done by semi-structured interviews. The resource application technique uses purposive sampling technique, which is where the sampling is taken with certain considerations by selecting informants who are considered to know the most about the object under study. The data analysis technique was carried out with qualitative analysis techniques. The results of the research that have been carried out show that the Public Accounting Firm of Drs. Bambang Mudjiono & Widiarto in their operational planning need further improvements, including not having Standard Operating Procedures (SOP) and recruiting new employees. Making SOP for offices and employees can help office operations run productively, consistently, effectively and efficiently, well managed. In addition, the use of the Audit Tool and Linked Archives (ATLAS) application can provide benefits for obtaining good audit quality for the office. Requesting feedback from clients is necessary to determine client satisfaction with the audit services that have been provided.
    Date: 2022–05–23
    URL: http://d.repec.org/n?u=RePEc:osf:osfxxx:kcxyu&r=
  2. By: Clemens Fuest; Stefan Greil; Felix Hugger; Florian Neumeier
    Abstract: This paper uses micro data from country-by-country reporting of more than 3600 large multinational companies operating in 238 jurisdictions to analyze global profit shifting to avoid taxes. These companies report 7% of their global profits in jurisdictions with effective average tax rates below 5%, but only 0.4% of their employees and 3% of their tangible assets are located there. We find that globally, these companies reduce their tax burden by EUR 53 billion (15% of their overall tax payments) by shifting profits to low-tax countries. Losses of the US and Canada are slightly lower, the losses of the EU 27 member states are similar to the global average. 60% of the profit shifting is carried out by the 10% largest multinational companies. We show that taking into account non-linearities in profit shifting and subsidiaries reporting zero profits is of key importance for accurate estimates of profit shifting. We also investigate profit shifting channels and provide evidence suggesting that the location of IP and equity in low tax countries as well as the provision of loans to entities in high tax countries play a key role for tax planning.
    Keywords: : corporate taxation, tax avoidance, profit shifting, multinational enterprises, country-by-country reporting
    JEL: F23 H25 H26
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_9757&r=
  3. By: International Monetary Fund
    Abstract: The Georgian Ministry of Finance (MoF) has continued to progress its analysis and reporting of fiscal risks, with its annual Fiscal Risk Statement (FRS) becoming the leading example in the region. In addition to detailed discussions of risks from SOEs and the balance sheet, amongst other, the December 2020 FRS included for the first time a qualitative discussion on the fiscal risks from climate change. Looking ahead, the government has committed to strengthening that further with the inclusion of quantitative estimates in the 2022 version of the FRS. This report provides the tools and analytical approaches to support that, as well as an update to the public sector balance (PSBS) sheet to identify the impact of the pandemic.
    Keywords: IMF resident representative; IMF's Fiscal Affairs Department; EU delegation; C. Intertemporal balance sheet effect; climate scenario; Climate change; Natural disasters; Financial statements; Fiscal risks; Global
    Date: 2022–05–27
    URL: http://d.repec.org/n?u=RePEc:imf:imfscr:2022/150&r=
  4. By: International Monetary Fund
    Abstract: At the request of the Suriname authorities, a remote technical assistance (TA) mission took place during December 6–17, 2021. The mission was conducted in coordination with the IMF’s Western Hemisphere Department. The main objective of the mission was to assist the Ministry of Finance and Planning (MFP) and the Central Bank of Suriname (CBS) to improve the quality of the Government Finance Statistics (GFS) in view of the IMF program. The main tasks were to (i) conduct a diagnostic assessment of the current GFS and public debt compilation process,(ii) explain and reduce statistical discrepancies, (iii) analyze data on arrears and reassess their treatment in GFS, (iv) review the integration of stocks and flows of the gross debt; and (v) update the public sector institutional table, and (vi) deliver a workshop on GFSM 2014 framework and (PSDS).
    Keywords: IMF's Statistics Department; Suriname debt management office; staff team of the International Monetary Fund; government finance Statistics mission; CBS accounting report; Government finance statistics; Stocks; Fiscal accounting and reporting
    Date: 2022–06–07
    URL: http://d.repec.org/n?u=RePEc:imf:imfscr:2022/160&r=
  5. By: Yea, Sangjun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP))
    Abstract: In this study, I present a theoretical model to quantitatively assess the economics impact of Pillar 1 and Pillar 2, especially focusing on the changes in the FDI patterns of multinational enterprises (MNEs). Pillar 1 offsets the incentives of MNEs' profits-shifting for tax-planning purposes, thereby reducing the inbound FDI into the countries with low corporate income tax rates. Pillar 2 burdens MNEs with 'top-up' taxes attributed from the subsidiaries in low tax countries. As the profits after tax (PAT) of MNEs shrink at the global level, innovation and R&D investment for new products will decrease, and as a result, global FDI flows will hamper.
    Keywords: International Tax System; Multinational Firms; FDI
    Date: 2022–04–28
    URL: http://d.repec.org/n?u=RePEc:ris:kiepwe:2022_017&r=
  6. By: Colin Davis (The Institute for the Liberal Arts, Doshisha University, JAPAN); Laixun Zhao (Research Institute for Economics & Business Administration (RIEB), Kobe University, JAPAN)
    Abstract: We study how tax policy affects economic growth through entrepreneurs' choice of commercialization mode. Introducing both heterogeneous quality jumps and a leapfrog versus sell choice into the quality-ladders model, we show that entrepreneurs use high-quality innovations to leapfrog incumbent firms and become new market leaders, but sell low quality innovations to incumbents. Tax incentives that promote leapfrogging slow the rate of innovation. A numerical analysis concludes surprisingly that corporate taxes, capital gains taxes, and subsidies to market entry all harm welfare.
    Keywords: Innovation based growth; Heterogenous quality improvements; Innovation sales; Corporate tax; Capital gains tax; Market entry subsidy
    JEL: O31 O33 O43
    Date: 2022–06
    URL: http://d.repec.org/n?u=RePEc:kob:dpaper:dp2022-28&r=
  7. By: Nezlobin, Alexander; Sloan, Richard G.; Giedt, Jenny Zha
    Abstract: A large body of empirical research in accounting investigates the causes and consequences of accruals quality, reaching numerous influential conclusions. Yet little work has been done to systematically evaluate the validity of the underlying measures of accruals quality. We evaluate these measures using three criteria: (i) Is the measure unaffected by the underlying economic determinants of accruals? (ii) Does the measure consistently reflect errors in accruals? and (iii) Does the measure facilitate tests with sufficient power to detect plausible variation in accrual errors? Using a combination of theoretical modeling and numerical simulations, we show that all measures fail at least one of these criteria. Our evaluation provides new interpretations of existing research and guides the choice of measures and the interpretation of results in future research.
    Keywords: accruals quality; construct validity; power; specification
    JEL: M41 C12
    Date: 2021–09–30
    URL: http://d.repec.org/n?u=RePEc:ehl:lserod:112165&r=
  8. By: Jean-Pierre Aubry
    Abstract: This brief – the second of two – takes a historical view of public pension underfunding to motivate a more transparent funding policy going forward. It builds on a key finding from the first brief – that some pension funds are still burdened by unfunded liabilities accumulated before modern actuarial funding.1 This so-called “legacy debt†poses a different policy challenge than other sources of unfunded liability because it reflects the cost from an older way of managing promised retirement benefits. And, because it stems from a much earlier era, it does not fit well within the modern framework that is designed to allocate costs to the period when benefits were earned Given the challenges that legacy debt poses, this brief presents a new approach that separates the funding of legacy liabilities from other pension liabilities, while valuing liabilities in a manner more consistent with modern accounting and finance. Hopefully, the new approach provides a clearer way forward for government employers, employees, and taxpayers.
    Date: 2022–06
    URL: http://d.repec.org/n?u=RePEc:crr:slpbrf:slp84&r=

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