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on Accounting and Auditing |
| By: | Hindriks, Jean (Université catholique de Louvain, LIDAM/CORE, Belgium); Nishimura, Yukihiro (Osaka University) |
| Abstract: | To tackle profit shifting, the OECD/G20 Inclusive Framework proposes a Global Minimum Tax. The general presumption is that high-tax countries will gain and low-tax countries will lose because the minimum tax will reduce their inward profit shifting. Recent papers have shown that the minimum tax can be welfare improving for all countries even if the welfare of the firm owners are taken into account (Johannesen 2022, Hebous and Keen 2023). The purpose of this paper is to extent that analysis to endogenous enforcement choices. By means of a formal model of international tax competition with heterogeneous countries, we study explicitely how the minimum tax will change the dynamics of tax competition, profit allocation and enforcement incentives. We show that in this broader framework, there exists a critical threshold for the minimum tax beyond which the low-tax country will defect from international enforcement cooperation, making the high-tax country worse off. We also show that our analysis is robust to the presence of tax haven. |
| Keywords: | Profit shifting ; Tax competition ; Tax enforcement |
| JEL: | C72 F23 F68 H25 H87 |
| Date: | 2025–01–20 |
| URL: | https://d.repec.org/n?u=RePEc:cor:louvco:2025003 |
| By: | Pierre-Emmanuel Thérond (LSAF - Laboratoire de Sciences Actuarielle et Financière - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon, Institut de Science Financières et d'Assurance, UCBL - Université Claude Bernard Lyon 1 - Université de Lyon, Thesseract); Pierre Boutonnet (Thesseract) |
| Abstract: | In late 2025, the IASB published an Exposure Draft proposing a new Risk Mitigation Accounting (RMA) model aimed at better reflecting how financial institutions manage interest rate repricing risk on a portfolio basis. The model seeks to reduce accounting volatility arising from measurement asymmetries between derivatives measured at fair value and instruments measured at amortised cost. It introduces a portfolio-based framework built around net repricing risk exposure and the recognition of a risk mitigation adjustment in the balance sheet. The article explains the architecture of the model and discusses its potential implications for insurers, particularly in the context of IFRS 17. |
| Abstract: | L'IASB a publié fin 2025 un projet de norme introduisant un modèle optionnel de Risk Mitigation Accounting (RMA) visant à mieux refléter, dans les états financiers, la gestion du risque de repricing des taux d'intérêt au niveau portefeuille. Le modèle cherche à réduire la volatilité comptable liée aux asymétries de valorisation entre dérivés et instruments mesurés au coût amorti. Il repose sur une approche fondée sur l'exposition nette au risque de repricing et sur la reconnaissance d'un ajustement de mitigation du risque au bilan. L'article présente l'architecture du modèle et discute ses implications potentielles pour les assureurs, notamment dans le contexte d'IFRS 17. |
| Keywords: | IFRS, Risk management, Interest Rate, Hedging, Accounting |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05546812 |
| By: | Elmahdi Tcham (MAPES - Laboratoire de Recherche en Management de la Performance des Organisations Publiques, Privées et de l’Économie Sociale - École Nationale du Commerce et de Gestion d’Agadir,); Malika Souaf; Youssef El Wazani |
| Abstract: | The gradual generalization of ESG (Environmental, Social, and Governance) reporting, particularly through AMMC Circular No. 03/19, is engaging Moroccan companies, especially listed firms, in a dynamic process of transparency and sustainability. This regulatory development raises major challenges for accounting professions, notably chartered accountants, who are increasingly called upon to play a key role in supporting organizations in achieving compliance and structuring non-financial information. Based on a qualitative study conducted with fifteen Moroccan chartered accountants, relying on semi-structured interviews analysed through an inductive thematic analysis, this research examines perceptions, emerging practices, and the difficulties encountered in integrating ESG requirements into traditional audit and advisory missions. The findings reveal a growing awareness of the strategic importance of ESG criteria, alongside a lack of adequate training, appropriate tools, and formalized demand beyond listed companies. Nevertheless, some professionals are developing frugal innovation approaches to address these emerging needs, notably through the creation of simplified analytical frameworks, targeted client training, or the gradual adaptation of financial statements to ESG-related issues. The study highlights a reconfiguration of the chartered accountant's role, from a guarantor of financial compliance to a partner in sustainable transformation, particularly within Moroccan entrepreneurial ecosystems undergoing transition. |
| Abstract: | Résumé : La généralisation progressive du reporting ESG (environnemental, social et de gouvernance), notamment à travers la circulaire AMMC n°03/19, engage les entreprises marocaines, en particulier les sociétés cotées, dans une dynamique de transparence et de durabilité. Cette évolution réglementaire soulève des enjeux majeurs pour les professions du chiffre, notamment les experts-comptables, appelés à jouer un rôle clé dans l'accompagnement des organisations dans la mise en conformité et la structuration des informations extra-financières. À travers une étude qualitative menée auprès de quinze experts-comptables marocains, fondée sur des entretiens semi-directifs analysés selon une méthode d'analyse thématique à visée inductive, cette recherche analyse les perceptions, les pratiques émergentes et les difficultés rencontrées dans l'intégration des exigences ESG dans les missions traditionnelles d'audit et de conseil. Les résultats révèlent une prise de conscience croissante de l'importance stratégique des critères ESG, mais aussi un déficit de formation, d'outils adaptés et de demande formalisée en dehors des sociétés cotées. Certains professionnels développent cependant des démarches d'innovation frugale pour répondre à ces nouveaux besoins, notamment via la création de grilles d'analyse simplifiées, des formations clients ciblées ou l'adaptation progressive des états financiers aux enjeux ESG. L'étude met en lumière une reconfiguration du rôle de l'expert-comptable, de garant de la conformité financière vers partenaire de la transformation durable, en particulier dans les écosystèmes entrepreneuriaux marocains en transition. Abstract : The gradual generalization of ESG (Environmental, Social, and Governance) reporting, particularly through AMMC Circular No. 03/19, is engaging Moroccan companies, especially listed firms, in a dynamic process of transparency and sustainability. This regulatory development raises major challenges for accounting professions, notably chartered accountants, who are increasingly called upon to play a key role in supporting organizations in achieving compliance and structuring non-financial information. Based on a qualitative study conducted with fifteen Moroccan chartered accountants, relying on semi-structured interviews analysed through an inductive thematic analysis, this research examines perceptions, emerging practices, and the difficulties encountered in integrating ESG requirements into traditional audit and advisory missions. The findings reveal a growing awareness of the strategic importance of ESG criteria, alongside a lack of adequate training, appropriate tools, and formalized demand beyond listed companies. Nevertheless, some professionals are developing frugal innovation approaches to address these emerging needs, notably through the creation of simplified analytical frameworks, targeted client training, or the gradual adaptation of financial statements to ESG-related issues. The study highlights a reconfiguration of the chartered accountant's role, from a guarantor of financial compliance to a partner in sustainable transformation, particularly within Moroccan entrepreneurial ecosystems undergoing transition. |
| Keywords: | durabilité organisationnelle. JEL Classification : M41 Type du papier : Recherche empirique ESG reporting, chartered accountants, financial regulation, frugal innovation, organizational sustainability Classification JEL : M41, innovation frugale, réglementation financière, experts-comptables, Reporting ESG, Reporting ESG experts-comptables réglementation financière innovation frugale durabilité organisationnelle. JEL Classification : M41 Type du papier : Recherche empirique ESG reporting chartered accountants financial regulation frugal innovation organizational sustainability Classification JEL : M41 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05491857 |
| By: | Piotr Dybka; Stanisław Bartha; Anna Komisarska; Michał Kowalczuk |
| Abstract: | The goal of this paper is to estimate the level and provide a sectoral decomposition of the VAT gap in Bulgaria based on the unique dataset provided by the National Revenue Agency in Bulgaria (NRA). We focus on the output VAT gap. Our potential VAT estimate takes into account the value of output VAT based on the estimate of sales. Our study also seeks potential macroeconomic factors that affect the VAT gap and obtained results indicate that a higher VAT gap can be associated with a larger share of micro enterprises, changes in the business cycle (i.e. increase in firm death rate and unemployment). Moreover, firms with higher shares of revenues from sales to government observe markedly lower output VAT gap. In Bulgaria, the largest share of the VAT gap in overall value of VAT is observed in the trade sector, followed by the information and communication sector and professional, scientific, and technical activities. |
| Keywords: | Shadow economy, VAT gap, VAT, Tax gap |
| JEL: | C51 E26 H21 H26 O17 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:sgh:kaewps:2026118 |
| By: | Anders G Fr{\o}seth |
| Abstract: | A proportional wealth tax -- a levy on the stock of wealth -- preserves portfolio neutrality by acting as a uniform drift shift in the Fokker-Planck equation for wealth dynamics. We extend this result to the full system of ownership taxes (eierkostnader) that a shareholder faces: a corporate tax on gross profits, a capital income tax on the risk-free return, a dividend and capital gains tax on the excess return, and a wealth tax on net assets. Each tax modifies the drift of the wealth process in a distinct way -- multiplicative rescaling, constant shift, or regime-dependent compression -- while leaving the diffusion coefficient unchanged. We show that the combined system preserves portfolio neutrality under three conditions: (i) the capital income tax rate equals the corporate tax rate, (ii) the shielding rate equals the risk-free rate, and (iii) the wealth tax assessment is uniform across assets. When these conditions hold, the after-tax excess return is a uniform rescaling of the pre-tax excess return by the factor (1-tau_c)(1-tau_d), and the drift-shift symmetry of the wealth-tax-only case generalises to a drift-shift-and-rescale symmetry. We classify the distortions that arise when each condition fails and show that flow-tax distortions and stock-tax distortions are additively separable: they do not interact. The shielding deduction -- a feature of several real-world tax systems, including the Norwegian aksjonaermodellen -- emerges as the mechanism that restores the symmetry between equity and debt taxation within this framework. Calibrated to the Norwegian dual income tax, conditions (i) and (ii) hold by institutional design; the only binding distortion is non-uniform wealth tax assessment, which generates portfolio tilts roughly 300 times larger than any residual flow-tax channel. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2603.15974 |
| By: | Brunella Bruno and Immacolata Marino |
| Abstract: | We examine how banks adjust credit allocation when hidden credit risk is revealed. Using supervisory risk disclosure data from the European Central Bank’s 2014 Asset Quality Review, we find that banks experiencing larger increases in non-performing loans and provisions significantly reduce riskweighted exposures while keeping total credit volumes largely unchanged. This suggests that derisking primarily occurs through portfolio reallocation - particularly within portfolios - rather than through credit contraction. We document heterogeneous responses depending on the rating approach used to measure credit risk and we show that capital constraints amplify, but are not the sole drivers of, de-risking. Finally, we provide evidence that supervisory risk disclosure plays a key role in shaping banks’ risk-taking behavior, even in the absence of observable adjustments in their financial statements. |
| Keywords: | Transparency, Bank Supervision, Credit risk, Non-performing loans (NPLs) |
| JEL: | G21 G28 M48 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:baf:cbafwp:cbafwp26268 |
| By: | Gregor Matvos; Tomasz Piskorski; Amit Seru |
| Abstract: | We document new evidence on the capitalization, funding structure, and performance of private credit funds using comprehensive fund- and asset-level data covering most of the industry. Private credit funds are highly capitalized, with equity typically accounting for 65–80% of total assets—more than six times the capitalization of U.S. banks, where equity represents about 10%. Debt usage is moderate and largely reflects bank credit lines used for liquidity management. Fund lives average 10–12 years, while underlying loan maturities are generally shorter, implying little or no maturity mismatch—unlike banks, which fund long-term assets with short-term callable deposits. Private credit portfolios are diversified across industries, geographies, and credit strategies, reducing exposure to correlated shocks. Performance data show positive average net annualized returns with limited downside risk to creditors, as losses are largely borne by equity investors. Overall, private credit funds appear conservatively structured and unlikely to pose systemic risks comparable to traditional banks under their current balance-sheet configurations. We conclude by discussing potential vulnerabilities that could emerge as the sector grows, including governance and disclosure frictions, stress-period dynamics, bank–nonbank linkages, and the transmission of losses through limited partner balance sheets and retail investment vehicles. |
| JEL: | G23 G28 L15 L5 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34991 |