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on Accounting and Auditing |
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Issue of 2023‒01‒02
twelve papers chosen by |
| By: | Zolotareva Anna (Russian Presidential Academy of National Economy and Public Administration); Shatalov Stanislav (Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | the article discusses approaches applied by supreme audit institutions of foreign countries to identifying and selecting audits in government sector. Significant attention is paid to issues of risk consideration and assessment. Critical observations on the effectiveness of risk analysis are provided. |
| Keywords: | SUPREME AUDIT INSTITUTIONS; AUDIT; AUDIT SELECTION; JUDGEMENT; RISK ANALYSIS; EMPIRICAL EVIDENCE |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:s21117&r=acc |
| By: | Jacopo Bizzotto (Oslo Business School - OsloMet); Alessandro De Chiara (Central European University (CEU) - Department of Economics; University of Barcelona; University of Barcelona - Barcelona Economic Analysis Team (BEAT)) |
| Abstract: | A regulator hires an auditor to inspect a firm. Audits serve two purposes: to detect violations and to motivate the firm to invest in compliance. Auditor and firm can collude to hide violations. Honest audits require sufficient monetary incentives for the auditor, and more frequent audits call for larger incentives. We link the optimal audit frequency to the budget constraint faced by the regulator, and to the firm's bargaining power in the collusive agreement. We show that (i) the optimal audit frequency need not be monotonic in the regulator's budget size, (ii) tolerating collusion can foster ex-ante investment, and (iii) a regulator that enjoys more flexibility in designing the auditor's compensation scheme might be less willing to deter corruption. |
| Keywords: | Auditing, corruption, information design, regulation |
| JEL: | D73 K42 L51 |
| Date: | 2022–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:oml:wpaper:202202&r=acc |
| By: | Alastair Swarbrick; Ferdinand Pot |
| Abstract: | This report discusses the costs and benefits of the transition from cash to accrual accounting in the public sector for SIGMA partners in the Western Balkans and the European Neighbourhood. The countries are attracted by the promises of accrual accounting and the corresponding IPSAS standards that it will improve transparency, accountability and financial decision-making. This report investigates whether the reform towards accrual accounting is indeed recommendable given that the reform towards IPSAS-based financial statements also carries a higher administrative burden and often requires government-wide adaptation or adjustment of the financial information systems. In this report, evidence from case studies of five EU Member States and four SIGMA partners is combined with a review of the academic literature to understand the balance of the benefits versus the costs of the reform. |
| Keywords: | accrual accounting, cash accounting, EPSAS, european neighbourhood, IPSAS, public accounting, public financial management reform, western balkans |
| Date: | 2022–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaac:65-en&r=acc |
| By: | Milogolov Nikolai (Russian Presidential Academy of National Economy and Public Administration); Gromov Vladimir (Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The use of digital technologies in tax administration is a promising way to develop the tax system itself and a necessary condition for the transition to a qualitatively new level of implementation of taxpayers' rights. By increasing the transparency of operations in the economy and reducing the cost of meeting the tax legislation requirements, digitalization brings strong advantages that make us to take a different look at the longstanding rules of calculating personal income tax. In this regard some significant issues of tax fairness and progressivity rise. |
| Keywords: | IT in administration, taxes collecting |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:s21111&r=acc |
| By: | Filippova Irina (Russian Presidential Academy of National Economy and Public Administration); Deryugin Alexander (Russian Presidential Academy of National Economy and Public Administration); Arlashkin Igor (Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The paper considers the impact of regional tax transfers to municipal budgets on the taxable base on a sample of 72 Russian regions for the period 2011–2018. The results of the assessment show that the transfer of the tax applied under the simplified taxation system and personal income tax has a positive effect in poor regions. The transfer of corporate income tax has a positive effect in rich regions. No significant results were obtained in regard to corporate property tax. |
| Keywords: | taxes policy, comparative analysis |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:s21110&r=acc |
| By: | Киреева, Дана Александровна; Нуждина, Анастасия Михайловна; Kudryashov, Alexander (Open European Academy of Public Sciences) |
| Abstract: | В условиях развития современной экономики всё большую значимость приобретает процесс обеспечения стейкхолдеров и других лиц доступной и достоверной информацией обо всех сферах деятельности компании, отраженной в нефинансовой отчетности предприятия. В статье определена основная роль нефинансовой отчетности в условиях функционирования фирмы и её влияние на положение компании в информационной бизнес-среде. Определены основные задачи формирования нефинансовой отчетности, рассмотрен круг лиц, которые заинтересованы в получении нефинансовой информации. Рассмотрены основные цели и положения управления нефинансовыми рисками в процессе деятельности компании. Также рассмотрено отражение нефинансовых показателей отчетности в мировой статистике. In the context of the development of the modern economy, the process of providing stakeholders and other persons with accessible and reliable information about all areas of the company’s activities, reflected in the non-financial statements of the enterprise, is becoming increasingly important. The article defines the main role of non-financial reporting in the conditions of the company’s functioning and its impact on the company’s position in the business environment. The main tasks of generating non-financial reporting are determined, the circle of persons who are interested in obtaining non-financial information is considered. The main goals and provisions of managing non-financial risks in the course of the company’s activities are revealed. The reflection of non-financial reporting indicators in world statistics is also considered. |
| Date: | 2022–04–19 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:x9wch&r=acc |
| By: | Chen, An; Hieber, Peter; Sureth, Caren |
| Abstract: | In this study, we use advance tax rulings (ATR) to investigate the impact of fee-based tax certainty on risky investment decisions of a firm under both cash flow and tax uncertainty. We model and analyze the multi-dimensional nature of tax uncertainty from tax reforms and tax audits in expected tax rates, tax bases, and in conjunction with loss offset restrictions. A tax au-thority can provide tax certainty by offering ATRs and charging an ATR fee. The fee imposes costs on firms. We determine the critical ATR fee range in which the ATR is acceptable for both the firm and tax authority. Gener-ally, we find the ATR allows the firm to take on riskier investments. If the ATR is employed in an environment with a generous tax loss offset policy, the ATR's inducement effect on risky investments is even strengthened. We identify settings in which the tax authority is willing to charge zero or even negative ATR fees. Negative fees can be interpreted as enhanced services to taxpayers that reduce taxpayers' compliance costs. Surprisingly, we find that an ATR is particularly effective for firms with low risk aversion. Our findings suggest that ATRs can effectively fight tax uncertainty and stimulate investment. However, their effectiveness crucially depends on tax system features such as loss offset restrictions and the ATR fee. |
| Keywords: | advance tax ruling,cash flow uncertainty,loss offset provisions,optimal fee,optimal investment,tax uncertainty |
| JEL: | G11 H25 M41 M42 M48 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:arqudp:273&r=acc |
| By: | Alessandro Chiari (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic) |
| Abstract: | Corporate profit shifting to tax havens negatively impacts corporate tax revenue, particularly in low-income countries. Two studies published in 2016 and 2018 have proven this correlation using data from 2013. In this paper, I use the most recent version of the UNU-WIDER Government Revenue Dataset (GRD) to estimate government revenue losses in 2019 and to observe possible changes associated with the release of the new dataset. My estimations indicate that global tax revenue losses in 2019 are around USD 480 billion, compared to USD 500 billion in 2013. In terms of GDP percentage, my estimations confirm the presence of a higher share of losses in low-income, and more generally, in non-OECD countries, and they show a higher intensity of tax avoidance practices in those countries. The results also suggest that the total level of tax revenue losses has plateaued, with no increase in losses occurring since 2013. |
| Keywords: | international taxation; corporate income tax; tax avoidance; tax havens; base erosion; profit shifting; income inequality; developing countries |
| JEL: | F21 F23 H25 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2022_30&r=acc |
| By: | Bischof, Jannis; Haselmann, Rainer; Tröger, Tobias |
| Abstract: | European banks have substantial investments in assets that are measured without directly observable market prices (mark-tomodel). Financial disclosures of these value estimates lack standardization and are hard to compare across banks. These comparability concerns are concentrated in large European banks that extensively rely on level 3 estimates with the most unobservable inputs. Although the relevant balance sheet positions only represent a small fraction of these large banks' total assets (2.9%), their value equals a significant fraction of core equity tier 1 (48.9%). Incorrect valuations thus have a potential to impact financial stability. 85% of these bank assets are under direct ECB supervision. Prudential regulation requires value adjustments that are apt to shield capital against valuation risk. Yet, stringent enforcement is critical for achieving this objective. This document was provided by the Economic Governance Support Unit at the request of the ECON Committee. |
| Keywords: | Bank's Balance Sheets,Complex Financial Instruments |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewh:91&r=acc |
| By: | Khomariah, Nurul; Kurniawan, Rachmad Risqy |
| Abstract: | Technological developments in the era of Digital Disruption 4.0 are increasing. The entry of this disruptive era is a challenge for companies both engaged in the services, trade, and manufacturing sectors. Not only technological developments in machines, but in this disruptive era it also affects the Company's financial service system. Therefore, accounting software is needed to support the Company's operations management. The accounting software used by Waxhaus is Jurnal.id. Jurnal.id accounting software is equipped with various features to support bookkeeping, finance, and store operations, SMEs, companies and businesses that are much more efficient and automated. Real time access from computers and mobile gadgets makes it easier for users to access when using them. This research was conducted to determine the effectiveness of using accounting software in Waxhaus operations management, especially in making financial statements. This study uses a qualitative method. Data collection techniques used to obtain information are observation and literature study. The results showed that the use of Jurnal.id accounting software initially experienced problems due to employee ignorance in using the software and also very little socialization to employees. When viewed from the other side, the use of Jurnal.id accounting software can support the effectiveness of the performance of the finance department in making reports that will be addressed to the leadership. So that the company's operations management can run following the developments of the Digital Disruption 4.0 era. |
| Date: | 2022–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:gywkf&r=acc |
| By: | Chipurenko Elena (Russian Presidential Academy of National Economy and Public Administration); Lisitskaya Tatiana (Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | Business - international and national corporations are one of the key participants in the global process of transition to sustainable growth and development of the world community. From the point of view of this issue, socially responsible business behavior and the ability of investors to assess the definition of the right directions for investing financial resources are of particular importance. To assess the implementation of sustainable development goals, the so-called non-financial data or ESG |
| Keywords: | social-responsible investments, depelopment of investing system |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:s21124&r=acc |
| By: | Joana Sousa-Leite; Diana Correia; Cristina Coutinho; Carmen Camacho |
| Abstract: | This paper analyses the evolution dynamics of the Banco de Portugal balance sheet since the beginning of the Stage III of the EMU. Following the global financial crisis, the evolution of the Banco de Portugal balance sheet was initially driven by an increase in liabilities, namely in intra-Eurosystem liabilities related to TARGET and current accounts, reflecting the liquidity provided through monetary policy refinancing operations, which was either deposited in the central bank or transferred to euro area banks outside of Portugal. Since 2015, broader monetary policy decisions regarding the asset side of the balance sheet were designed to support economic growth and bring inflation back to the 2% target. Between 1999 and 2021, the Banco de Portugal balance sheet expansion was mostly driven by the asset purchase programmes and significant increases in central bank funding to banks and in intra-Eurosystem claims, the latter aggregate being explained by the inflow of banknotes related to the tourism activity in Portugal. |
| JEL: | E41 E44 E51 E52 E58 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ptu:wpaper:o202205&r=acc |