nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2023‒02‒20
six papers chosen by

  1. Loss Aversion and Tax Evasion: Theory and Evidence By Sanjit Dhami; Narges Hajimoladarvish; Pavan Mamidi
  2. News of the Algerian accounting system for insurance and/or reinsurance companies By Mohamed Debbouzine
  3. Cross-Country Evidence on the Revenue Impact of Tax Reforms By Mr. Valerio Crispolti; Mr. David Amaglobeli; Xuguang Simon Sheng
  4. The diffusion of innovations’ theory shortfall in accounting standardization research: The case of IFRS for SMEs By Issam Benhayoun; Ibtissam Zejjari
  5. Towards Developing a Shariah Governance Framework for Waqf Institutions: A Case of Majlis Agama Islam Melaka By Syed Ahmed Salman
  6. Requirements to Join the International Federation of Accountants By Hua, Tan Kian

  1. By: Sanjit Dhami; Narges Hajimoladarvish; Pavan Mamidi
    Abstract: We consider income-source-dependent tax evasion and show that this is a generalization of the well-known endowment effect. We show that loss aversion, moral costs, mental accounting, and risk preferences play a key role in explaining key features of source-dependent tax evasion. We provide evidence of the first direct link between subject-specific loss aversion and tax evasion, which is central to most successful modern theoretical accounts of tax evasion. We provide some evidence that risk aversion strengthens the cautionary effect of loss aversion and risk loving behavior attenuates, or reverses, it. However, the underlying effect is also influenced by the source of income. Evasion is increasing in the tax rate and decreasing in the audit penalty, as predicted. Our paper provides novel theoretical insights; proposes new methods in the estimation of the underlying behavioral parameters; and confirms the central predictions of the theory, while pointing out challenges for further developments that existing theory is unable to account for.
    Keywords: tax evasion, endowment effect, loss aversion, morality, mental accounting, prospect theory, risk aversion
    JEL: C91 C92 D82 D91 G21
    Date: 2023
  2. By: Mohamed Debbouzine (UMBB - Université M'Hamed Bougara Boumerdes)
    Abstract: This article aims to present the novelties brought to the accounting of insurance and reinsurance organizations in Algeria, and this, within the framework of the new regulations enacted by the Notice N ° 89 of the CNC, of March 10, 2011. The most significant change is the removal of the concept "Technical debts" which have been replaced by class 03 "accounts for technical insurance reserves".
    Abstract: Cet article a pour objectif de présenter les nouveautés apportées à la comptabilité des organismes d'assurance et de réassurance en Algérie, et ce, dans le cadre de la nouvelle réglementation édictée par l'Avis N° 89 du CNC, du10 mars 2011. Le changement le plus marquant est la suppression de la notion « Dettes techniques » qui ont été remplacé par la classe 03 « comptes de provisions techniques d'assurance ».
    Keywords: Comptabilité d'assurance Assurance Réassurance Provisions techniques états financiers Code Jel : M41 G22 Accountancy Insurance Reinsurance Technical reserves financial statements JEL Classification Codes: M41 G22, Comptabilité d'assurance, Assurance, Réassurance, Provisions techniques, états financiers, Code Jel : M41, G22 Accountancy, Insurance, Reinsurance, Technical reserves, financial statements, JEL Classification Codes: M41, G22
    Date: 2022–12–04
  3. By: Mr. Valerio Crispolti; Mr. David Amaglobeli; Xuguang Simon Sheng
    Abstract: Many countries face the challenge of raising additional tax revenues without hurting economic growth. Comprehensive, cross-country information on the revenue impact of tax policy changes can thus support informed decision-making on viable reforms. We assess the likely revenue impact of various tax policy changes based on a sample of 21 advanced and emerging market economies, using granular information from the IMF Tax Policy Reform Database v.4.0. Our findings suggest that the revenue yield of a tax policy change varies significantly depending on the tax instrument adopted (e.g., VAT or personal income tax) and the nature of the change (i.e., rate, base). For example, in our sample, base-broadening changes to personal and corporate income taxes as well as to excise and property taxes have generally a more significant and long-lasting revenue yields than rate changes. By contrast, rate changes appear to have a relatively more significant revenue impact in the case of VAT and social security contributions. We also observe an asymmetry in the revenue impact of most tax policy measures when controlling for the direction of tax changes (i.e., its significance varies depending on whether taxes are increased or decreased). While our results are based on qualitative information of tax policy changes (i.e., dummy variables), the revenue yields of rate measures are not materially different from those that would be obtained using quantitative information on the size of the change.
    Keywords: corporate income tax; personal income tax; value added taxes; social security contributions; excise; property taxes; tax reforms; revenue yield; revenue impact; Tax-to-GDP ratio; rate change; SSC rate hike; Tax collection; Value-added tax
    Date: 2022–09–30
  4. By: Issam Benhayoun (UMI - Université Moulay Ismail); Ibtissam Zejjari (Sidi Mohammed Ben Abdellah University, Fez, Morocco)
    Date: 2022–10–01
  5. By: Syed Ahmed Salman (Lincoln University, Petaling Jaya, 47301, Malaysia Author-2-Name: Rusni Hassan Author-2-Workplace-Name: IIUM Institute of Islamic Banking and Finance, Gombak, 53100, Malaysia Author-3-Name: Nur Atiqah Maulad Murat Author-3-Workplace-Name: IIUM Institute of Islamic Banking and Finance, Gombak, 53100, Malaysia Author-4-Name: Adnan Yusoff Author-4-Workplace-Name: Universiti Tenaga Nasional, Kajang, Selangor, 43000, 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 - Since Islam, Waqf, known as the Islamic endowment, has played a significant role in reforming and developing the economy. Like zakat (compulsory charity) and sadaqah (optional charity), Waqf has also been considered an essential means of poverty alleviation and upliftment. In Malaysia, each state's jurisdiction, called the State Islamic Religious Council (SIRCs), supervises waqf properties' governance. However, recently, it has been reported that the SIRC responsible for managing waqf properties has been unable to manage and operate effectively. To devise a well-designed strategy that can strengthen governance within the waqf institutions. Moreover, restoring Waqf as a mechanism for socio-economic development may be necessary for waqf institutions to develop their formal governance framework. Therefore, this paper aims to conduct a qualitative study of current Shariah governance practices in Waqf institutions at Majlis Agama Islam Melaka (MAIM). Methodology – The qualitative research method was used for this investigation. The interviewees are chosen using a selection process that is a hybrid of convenience sampling and purposeful sampling. Both content and descriptive analysis were utilized in analyzing the outcomes of the interviews. To obtain information on waqf governance in MAIM, an interview was conducted with various officers from the organization. A total of six experts in the field of Waqf from MAIM participated in this study and were interviewed for this research. Findings – The current practices of Shari'ah Governance in Waqf Institution in Majlis Agama Islam Melaka (MAIM) have been examined through interviews and brochures from interviewees. Several gaps were found in the organization's structure; Board of Directors, Shariah Committee, Shariah Audit, Shariah Review, and Shariah Risk Management. Based on findings extracted from the analysis, researchers provide several recommendations. Novelty – This study is unique because there was no study conducted on the current practices of Shari'ah Governance in Waqf Institution in Majlis Agama Islam Melaka (MAIM). The officers and board of directors will benefit significantly from this research in both an educational and a guiding capacity. Type of Paper - Empirical"
    Keywords: Waqf; Shari'ah governance; Majlis Agama Islam Melaka; and Malaysia
    JEL: A12 Z12 Z19
    Date: 2022–12–31
  6. By: Hua, Tan Kian
    Abstract: Requirements to Join the International Federation of Accountants
    Date: 2023–01–09

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