nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2022‒11‒21
four papers chosen by

  1. The influence of covid-19 on provision measurement given international financial reporting standards By Kadri, Abdelkader
  2. Belarus: Technical Assistance Report-Financial Accounts and Balance Sheet Statistics Mission By International Monetary Fund
  3. New financial ratios based on the compositional data methodology By Salvador Linares-Mustar\'os; Maria \`Angels Farreras-Noguer; N\'uria Arimany-Serrat; Germ\`a Coenders
  4. Ireland: Financial Sector Assessment Program-Technical Note on Anti-Money Laundering/Combating the Financing of Terrorism By International Monetary Fund

  1. By: Kadri, Abdelkader
    Abstract: This research deals presenting the procedures for accounting measurement of intangible assets in accordance with International Accounting Standard IAS 37 — Provisions, Contingent Liabilities and Contingent Assets. As this article aims to highlight key accounting and financial reporting impacts of COVID-19 to be considered by companies. In that, Provisions are selected as a sample for the study, in that this study relied on the descriptive analytical approach.
    Keywords: Accounting; Provisions; Obligation; Standards; covid-19
    JEL: M41
    Date: 2022–06–04
  2. By: International Monetary Fund
    Abstract: The remote technical assistance (TA) mission provided guidance to the National Statistical Committee of the Republic of Belarus (BelStat) on the preliminary estimates of the Financial Accounts and Balance Sheets (FABS) for 2017. The TA mission assisted with compiling the revaluation and the other changes in volume accounts to give better consistency to the financial flows and stocks and improve the reconciliation process of the FABS. BelStat is in charge of compiling the current accounts for all the institutional sectors and is starting to compile the financial accounts for which important progress has been made. To regularly compile FABS, the mission recommended that BelStat addresses the discrepancies between the net lending/borrowing from the capital and the financial account by incorporating more data sources such as government’s financial stocks and business accounting data. The TA mission also provided guidance on compiling the Financial Intermediation Services Indirectly Measured (FISIM) to get a more consistent estimate. The mission highlighted the progress made and encouraged BelStat to continue working on compiling FABS for 2017 and onwards.
    Keywords: financial accounts; balance sheets; stocks; flows
    Date: 2022–10–25
  3. By: Salvador Linares-Mustar\'os (University of Girona); Maria \`Angels Farreras-Noguer (University of Girona); N\'uria Arimany-Serrat (University of Vic-Central University of Catalonia); Germ\`a Coenders (University of Girona)
    Abstract: Due to their type of mathematical construction, the use of standard financial ratios in studies analysing the financial health of a group of firms leads to a series of statistical problems that can invalidate the results obtained. These problems are originated by the asymmetry of financial ratios. The present article justifies the use of a new methodology using compositional data (CoDa) to analyse the financial statements of a sector, improving analyses using conventional ratios since the new methodology enables statistical techniques to be applied without encountering any serious drawbacks such as skewness and outliers, and without the results depending on the arbitrary choice as to which of the accounting figures is the numerator of the ratio and which is the denominator. An example with data of the wine sector is provided. The results show that when using CoDa, outliers and skewness are much reduced and results are invariant to numerator and denominator permutation.
    Date: 2022–10
  4. By: International Monetary Fund
    Abstract: While domestic money laundering (ML) threats are well understood by the authorities, Ireland faces significant and increasing threats from foreign criminal proceeds. As a growing international financial center,1 Ireland is exposed to inherent transnational money laundering and terrorist financing (ML/TF) related risks. The ML risks facing Ireland include illicit proceeds from foreign crimes (e.g., corruption, tax crimes). Retail and international banks, trust and company service providers (TCSPs),2 lawyers, and accountants are medium to high-risk for ML, while virtual asset service providers (VASPs) pose emerging risks. Brexit, the recent move of international banks to Dublin, and the COVID-19 pandemic increased the money laundering risks faced by Ireland. The Central Bank of Ireland (Central Bank) nevertheless has demonstrated a deep and robust experience in assessing and understanding their domestic ML/TF risks; however, an increased focus on risks related to transnational illicit financial flows is required. A thematic risk assessment undertaken by the Anti-Money Laundering Steering Committee (AMLSC) of international ML/TF risks would enhance the authorities’ risk understanding and is key to effective response to the rapid financial sector growth. Introducing data analytics tools, including machine learning to leverage potentially available big data on cross-border payments, would allow for efficient detection of emerging risks. The results of this assessment should be published to improve the understanding of transnational ML/TF risks and feed into the anti-money laundering and combating the financing of terrorism (AML/CFT) policy priorities going forward.
    Date: 2022–10–21

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.