nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2022‒11‒07
six papers chosen by

  1. Recognition versus Disclosure and Managerial Discretion: Evidence from Japanese Pension Accounting By Masaki KUSANO
  2. Do Illicit Financial Flows Hurt Tax Revenues ? Evidence from the Developing World By Combes,Jean-Louis,Minea,Alexandru,Sawadogo,Pegdewende Nestor
  3. Globalization and Factor Income Taxation By Bachas,Pierre Jean; Fisher-Post,Matthew; Jensen,Anders; Zucman,Gabriel
  4. La transformation numérique dans le secteur bancaire français By T. Dufour; M. Vileyn; O. Fliche; J. Dorlencourt; G. Clément
  5. Fair Inheritance Taxation By Decerf,Benoit Marie A; Maniquet,François
  6. Republic of Moldova: Technical Assistance Report-National Accounts Statistics Mission By International Monetary Fund

  1. By: Masaki KUSANO
    Abstract: In Japan, the current pension accounting standard requires firms to recognize pension items— prior service costs and actuarial gains and losses—in consolidated financial statements; however, firms are still allowed to disclose them in the notes when preparing unconsolidated financial statements. Employing this unique pension accounting rule, I explore whether and how disclosed versus recognized pension liabilities influence managerial discretion regarding pension assumptions. Recognition firms, those that recognize the previously disclosed pension items on the balance sheet, choose higher discount rates than disclosure firms, those that still disclose them in their notes. In particular, in case of more debt- contracting incentives, recognition firms are more likely to exercise their discretion over discount rates than disclosure firms. Overall, my results suggest that firms underestimate pension liabilities by using pension assumptions when pension recognition rules are mandated.
    Keywords: Recognition versus Disclosure, Managerial Discretion, Pension Accounting, Discount Rate
    JEL: M41 M48
    Date: 2022–10
  2. By: Combes,Jean-Louis,Minea,Alexandru,Sawadogo,Pegdewende Nestor
    Abstract: Recent work draws attention to the fragility of domestic tax revenues—a vital resource for the developing world—to illicit financial flows. To cope with two major challenges in the illicit financial flows–tax revenues relationship—related to the mere illicit financial flows measurement and reverse causality—this paper exploits the Financial Action Task Force data using an impact assessment analysis. Estimations reveal a significant tax revenue loss in countries associated with important illicit financial flows with respect to comparable countries without important illicit financial flows. Moreover, this causal effect—estimated as being economically meaningful—is supported by a large robustness section, and in particular remains unchanged when using several “doubly robust” estimators. Lastly, it unveils heterogeneities in the impact of illicit financial flows on tax revenues, related to the type of tax—a significant loss for indirect but not for direct taxes—and the considered environment. Therefore, policies combating illicit financial flows—for example, by developing institutions or a sound financial system, as shown by the estimations—may provide additional tax revenues for the developing world.
    Keywords: Social Conflict and Violence,International Trade and Trade Rules,Financial Sector Policy,Legal Products,Judicial System Reform,Standards and Technical Regulations,Social Policy,Regulatory Regimes,Legal Reform,Trade and Standards,Legislation,Trade Law,Trade Technology and Productivity,Foreign Trade Promotion and Regulation,Financial Regulation&Supervision
    Date: 2021–09–23
  3. By: Bachas,Pierre Jean; Fisher-Post,Matthew; Jensen,Anders; Zucman,Gabriel
    Abstract: How has globalization affected the relative taxation of labor and capital, and why To addressthis question, this paper builds and analyzes a new database of effective macroeconomic tax rates covering 150 countriessince 1965, constructed by combining national accounts data with government revenue statistics. Four main findings areobtained. (1) The effective tax rates on labor and capital have converged globally since the 1960s, due to a 10percentage-point increase in labor taxation and a 5 percentage-point decline in capital taxation. (2) Thedecline in capital taxation is concentrated in high-income countries. By contrast, capital taxation has increased indeveloping countries since the 1990s, albeit from a low base. (3) Consistently across a variety of research designs,the findings show that the rise in capital taxation in developing countries can be explained by a tax capacityeffect of international trade: trade openness leads to a concentration of economic activity in formal corporatestructures, where capital taxes are easier to impose. (4) At the same time, international economic integration reducesstatutory tax rates, due to increased tax competition. In high-income countries, this negative tax competition effectof trade has dominated, while in developing countries, the positive tax-capacity effect of international trade appearsto have prevailed.
    Date: 2022–03–15
  4. By: T. Dufour; M. Vileyn; O. Fliche; J. Dorlencourt; G. Clément
    Abstract: L’ACPR a mené en 2017, et publié début 2018, deux études sur la révolution numérique, l’une consacrée au secteur de l’assurance3 et l’autre au secteur bancaire. Il a paru intéressant de reconduire ces deux études à quelques années de distance, afin d’apprécier les évolutions de ces deux secteurs. La présente étude, consacrée au secteur bancaire, s’est appuyée sur un questionnaire d’une cinquantaine de questions, proche du questionnaire de 2017-2018, envoyé à 8 établissements bancaires représentatifs du marché français. Ce numéro d’Analyses et synthèses vise à présenter une synthèse des réponses des organismes interrogés, afin de faire apparaître les principales tendances de la transformation numérique dans le secteur bancaire en France. Cette étude ne constitue pas une revue de la conformité des dispositifs ou organisations décrits par les répondants. Elle n’a pas non plus pour objectif de formuler un jugement ou de définir les politiques de l’Autorité s’agissant du diagnostic posé par les répondants ou des perspectives dessinées par ces derniers.
    Keywords: Banque, numérisation, innovation, Fintech
    JEL: G28 G18 K23 L51
    Date: 2022
  5. By: Decerf,Benoit Marie A; Maniquet,François
    Abstract: This paper studies the optimal taxation of bequests in a model in which agents haveheterogeneous preferences over their consumption and the net-of-tax bequest received by their heir. The bequest leftby an individual depends on both her degree of altruism and the bequest received from her parents. First, the paperstudies two principles that are at the heart of the debates on taxing inheritances: (1) children should not be penalizedby the lack of altruism of their parents, and (2) parents should be free to choose their bequests. Only one socialwelfare function satisfies these two principles, together with Pareto efficiency and a separability principle. Second,the paper studies the shape of the inheritance tax scheme that maximizes this social welfare function. It shows thatin the aggregate, the inheritance tax must collect money (redistributed through a non-negative demogrant). Moreover,small bequests cannot be taxed (they can potentially be subsidized), while bequests that are larger than those ofthe most altruistic individuals who did not receive bequests from their parents should be taxed as much as efficiency permits.
    Date: 2021–10–12
  6. By: International Monetary Fund
    Abstract: A national accounts statistics mission provided remote technical assistance in national accounts to the National Bureau of Statistics of Moldova (NBS) during January 17–28, 2022. The NBS has received extensive technical assistance from the IMF in recent years and has made good progress in improving the national accounts compilation. The GDP estimates are compiled according to the System of National Accounts, 2008. Recent national accounts technical assistance missions have assisted the NBS in improving the quarterly estimates of GDP, implementing chain-linked volume measures, and implementing the Statistical Classification of Economic Activities in the European Community (NACE rev.2), among other areas. The mission assisted in improving the annual GDP estimates for 2014 to 2020, to take account of revised population data and other additional source data. Estimates of GDP in current prices by production and by expenditure categories were reviewed and improved. Estimates of GDP in volume terms (at prices of the previous year) were compiled by production and expenditure categories. Both sets of GDP estimates were balanced at current prices and in volume terms. The mission recommended that, to improve the consistency and accuracy of the GDP estimates, the NBS develop a system to compile supply and use tables on a regular basis.
    Keywords: staff team of the International Monetary Fund; World Bank staff; report constitute; instrumentalities of the TA recipient; commodity flow method; GDP estimate; Consumption; Household consumption; Financial statements; Housing
    Date: 2022–09–23

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