|
on Accounting and Auditing |
| By: | Blidisel, Rodica |
| Abstract: | The diversity in public sector accounting is fairly significant in Europe. Different political, economic and cultural traditions give rise to great diversity between public sector accounting systems in different countries. In order to improve public accountability there were developed a series of recommended public sector accounting standards. The aim of the paper is the presentation of the International Public Sector Accounting Standards (IPSAS) approach and their adoption into the European accounting systems, emphasizing a particular case: the adoption of IPSAS by European Union institutions. The paper presents a literature review of the accounting principles and financial reporting in Europe, the financial statements and the relationship between financial and budgetary accounting and the weaknesses in the current accounting model. In the first and main part of the paper, the issues most pertinent in public debates and policies are identified and discussed. Information is collected from written and electronic sources as well as through consultation of national experts. The second part of the report is a comparative analysis. The IPSAS perhaps provide an opportunity for European accounting, and in future, national governments should attempt their accounting systems to the IPSAS. The paper contributes to the development of some points of view regarding the adoption of the IPSAS by the European countries accounting systems and the harmonisation of the European public accounting systems. |
| Keywords: | IPSAS; public sector; accrual accounting |
| JEL: | M4 |
| Date: | 2007–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:6379&r=acc |
| By: | John R. Graham; Lillian F. Mills |
| Abstract: | We document that simulated corporate marginal tax rates based on financial statement data (Shevlin 1990 and Graham 1996a) are highly correlated with simulated rates based on corporate tax return data. We provide algorithms that can be used to estimate the book or tax simulated rates when they are not available. We find that the simulated book marginal tax rate does a better job of explaining financial statement debt ratios than does the analogous tax return variable and discuss how the book simulated rate is likely to be an appropriate measure in settings with global, long-term considerations. |
| JEL: | G32 H25 M41 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:13709&r=acc |
| By: | van Zyl, Warrick Boyd |
| Abstract: | This paper focuses on how to calculate diluted earnings per share (DEPS) when a firm has outstanding employee stock options (ESOs). Three possible methods are described and compared. The first is the current International Accounting Standard 33 – Earnings Per Share (IAS 33) approach which is based on the intrinsic value of the ESOs. The second method, advocated by Core et al. (2002), is very similar to that of IAS 33 but instead of the intrinsic value uses the fair value of the outstanding options. This paper derives an alternative method which adjusts the earnings for the year by the change in fair value of the outstanding ESOs, with no adjustment to the denominator in the DEPS calculation. The three methods are compared using a simple firm. The earnings adjustment method best describes the change in economic value of the current shareholders, the fair value is more useful in predicting future profits, and the intrinsic value method appear to provide no additional information to that already contained in the other two measures. The earnings adjustment method has a further advantage in that it provides an identical result at a DEPS level to that which would have been obtained if the ESOs were cash-settled and treated as liabilities in terms of IFRS 2. Thus using this method will improve comparability as cash-settled and equity-settled options have a very similar economic effect on current shareholders. |
| Keywords: | employee stock options EPS Diluted EPS |
| JEL: | M41 |
| Date: | 2007–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:6322&r=acc |
| By: | Pavlatos, Odysseas; Paggios , Ioannis |
| Abstract: | The purpose of this paper is to provide insights of the Greek Hotel Industry practices in the field of Cost Accounting. To this end, a survey was conducted with 85 firms of the Greek hotel sector with the use of questionnaires. Results show that hotel enterprises have a high fixed cost structure and also face a high proportion of indirect costs. The gathered data led us to the conclusion that the majority of the hotels use traditional cost accounting systems. Nevertheless, the adoption rate of an activity based costing (ABC) system is considered rather satisfactory considering the rates that come from surveys conducted in hotel enterprises in other countries. According to the statistical analysis, the factors that mostly affect the managerial decision of hotels in favour of an ABC system include their cost structure and the cost calculation per customers' categories. |
| Keywords: | cost accounting practices; cost accounting systems; cost accounting techniques; activity based costing; hotel enterprises; Greece |
| JEL: | M1 L83 M4 |
| Date: | 2007–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:6364&r=acc |