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on Accounting and Auditing |
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Issue of 2024‒01‒22
three papers chosen by |
| By: | Yuri Biondi (IRISSO - Institut de Recherche Interdisciplinaire en Sciences Sociales - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | The European Commission is currently seeking to implement the OECD/G20 agreement on minimum corporate taxation, in view to ensuring a minimum effective tax rate on large multinational corporate groups and protecting the level playing field for business and society. In fact, the proposed ruling introduces scope exceptions for groups directly or indirectly controlled by governmental entities, non-profit organisations, and investment and pension funds. These scope exceptions may provide incentives for controlling parties to restructure the corporate group in view to avoid taxation, if the minimum effective tax threshold is constraining and material. Furthermore, it may provide a tax competitive advantage for groups controlled by those parties. |
| Keywords: | tax avoidance global wealth chains multinational companies, tax avoidance, global wealth chains, multinational companies |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03902527&r=acc |
| By: | Marie-Chantale Pelletier; Claire Horner; Mathew Vickers; Aliya Gul; Eren Turak; Christine Turner |
| Abstract: | Purpose: The aim of this study was to explore the feasibility of natural capital accounting for the purpose of strengthening sustainability claims by reporting entities. The study linked riparian land improvement to ecosystem services and tested options for incorporating natural capital into financial accounting practices, specifically on the balance sheet. Methodology: To test the approach, the study used a public asset manager (a water utility) with accountabilities to protect the environment including maintaining and enhancing riparian land assets. Research activities included stakeholder engagement, physical asset measurement, monetary valuation and financial recognition of natural capital income and assets. Natural capital income was estimated by modelling and valuing ecosystem services relating to stormwater filtration and carbon storage. Findings: This research described how a water utility could disclose changes in the natural capital assets they manage either through voluntary disclosures, in notes to the financial statements or as balance sheet items. We found that current accounting standards allowed the recognition of some types of environmental income and assets where ecosystem services were associated with cost savings. The proof-of-concept employed to estimate environmental income through ecosystem service modelling proved useful to strengthen sustainability claims or report financial returns on natural capital investment. Originality/value: This study applied financial accounting processes and principles to a realistic public asset management scenario with direct participation by the asset manager working together with academic researchers and a sub-national government environment management agency. Importantly it established that natural assets could be included in financial statements, proposing a new approach to measuring and reporting on natural capital. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.13515&r=acc |
| By: | Jung Ho Choi; Brandon Gipper; Fiona Sequeira |
| Abstract: | This technical note investigates the organizational changes of accounting-fraud firms to understand and improve the quality of internal firm identifiers in the Business Register Bridge (BRB) of the Census data. Accurate internal firm identifiers are important because firm-level employment statistics aggregate establishment-level employment information based on internal firm identifiers in the Census data. This technical note uses researcher-provided data from the SEC Accounting and Auditing Enforcement Releases (AAERs) to identify accounting-fraud firms, the UCLA-LoPucki Bankruptcy Research Database (BRD) to identify fraud firm bankruptcies, Thomson ONE to identify fraud firm M&As, and Compustat to provide firm characteristics. After linking these external data sets to the Census data including the LBD and LEHD and performing various match rate analyses, this note makes three main contributions: (1) The note documents the overall match rates between external and Census data for firms in our sample, showing that accounting-fraud firms have higher match rates, with potential reasons such as firm size delineated. (2) The note documents the overall match rates, as well as pre and post-2000 rates, between external and Census data for bankruptcy-fraud firms, exploring specific cases of inconsistency in both the LBD and the merged LBD-LEHD data. (3) This note provides descriptive statistics about the number and rate of accounting-fraud firms that experience M&A activities in the three-year post-fraud period. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:cen:tnotes:23-21&r=acc |