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on Accounting and Auditing |
| By: | Gallardo Ramiro, M V; Hernández Gañán, S |
| Abstract: | Since the General Chart of Accounts had been changed, the number of financial statements has gone up. Now, it is required more financial information to the companies on its annual accounts. These new financial statements are Statement of Changes in Equity and Cash Flow Statement. Instead, the Statement of Changes in Equity summarizes the items which are not classified as liabilities, financial instruments and its fluctuations. Moreover, when this new accounting statement was passed, the control about accounting has increased. Bearing in mind, the creation of 8th and 9th financial accounts group; contra-accounts are the statements which composed the 13rd subgroup. Financial accounts which belong to the 13rd subgroup are summarized on the Statement of Changes in Equity. The main goal is an improvement of financial information provided by corporations. |
| Keywords: | Estado de cambios de patrimonio neto; Nuevo plan general contable; Patrimonio neto; Estado de ingresos y gastos reconocidos |
| JEL: | M41 |
| Date: | 2010–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:23460&r=acc |
| By: | Bernardi, Luigi |
| Abstract: | This paper is devoted to present and to discuss the evolution of tax systems in Europe since the middle of the 1990s. EU25 as well as EU15 and NMS countries are considered. First of all, in par. 2, the quantitative trends of revenue are considered, since 1995 to 2006 (last detailed data available in Eurostat data bank). In EU15 countries no relevant changes took place, with reference to both the total level of taxation and its institutional composition by main taxes. On the contrary, in NMS countries total fiscal pressure went down, especially in the case of the personal income tax and social contributions. In EU15 countries fiscal burden continues to be charged mainly on labor incomes, while in NMS countries consumption taxes prevail. Tax systems convergence was limited in EU15 member countries and more relevant in NMS countries. In both groups of countries the more converging taxes were the corporate tax and the Vat. There is no evidence of a trend toward a greater decentralization of the power to tax. The countercyclical role played by taxation during the economic crisis was small and mainly consisted in lowering the income tax burden on lower incomes. Par. 3 discusses the main tax reforms which took place during those years. Those reforms were mainly concentrated on the most mobile bases (corporation tax and financial rents) in EU15 and on income tax in NMS, with the widespread proliferation of flat taxes. Finally, par 4 explores the most recent proposal of tax reforms, which have been suggested by the EU commission, the OECD and the “Mirrlees Review”. Some of the insights stemming from European experiences and reform proposals are then applied to the Italian case. |
| Keywords: | Tax Systems; Tax Reforms; Europe; 1995-2006 |
| JEL: | H20 |
| Date: | 2009–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:23441&r=acc |
| By: | Norbäck, Pehr-Johan (Research Institute of Industrial Economics (IFN)); Persson, Lars (Research Institute of Industrial Economics (IFN)); Tåg, Joacim (Research Institute of Industrial Economics (IFN)) |
| Abstract: | Commentators on the private equity industry often claim that favorable tax treatment gives private equity firms advantages in the market for corporate control. But we show that tax advantages do not affect the equilibrium ownership of corporate assets when acquisition costs are fully deductible since buyers' valuations of assets are then independent of taxes. However, tax advantages are of importance under limited bidding competition, limited deductibility and in the presence of oligopolistic externalities in the product market. We also show that from an efficiency perspective, there are too many acquisitions in a double taxation system because acquisitions create deductions for buyers that are not available to sellers. |
| Keywords: | Capital Gains Tax; Corporate Tax; Ownership Efficiency; Private Equity; Buyouts; LBOs; M&As |
| JEL: | D20 F23 G18 H20 H25 H26 L10 L13 |
| Date: | 2010–06–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0841&r=acc |
| By: | Claudio Borio; Bent Vale; Goeth von Peter |
| Abstract: | How does the management and resolution of the current crisis compare with the response of the Nordic countries in the early 1990s, widely regarded as exemplary? We argue that, while intervention has been prompter, the measures taken so far remain less comprehensive and in-depth. In particular, the cleansing of balance sheets has proceeded more slowly, and less attention has been paid to reducing excess capacity and avoiding competitive distortions. In general, policymakers have given higher priority to sustaining aggregate demand in the short term than to encouraging adjustment in the financial sector and containing moral hazard. We argue that three factors largely explain this outcome: the more international nature of the crisis; the complexity of the instruments involved; and, hardly appreciated so far, the effect of accounting practices on the dynamics of the events, reflecting in particular the prominent role of fair value accounting (and mark to market losses) in relation to amortised cost accounting for loan books. There is a risk that the policies followed so far may delay the establishment of the basis for a sustainably profitable and less risk-prone financial sector. |
| Keywords: | Crisis management and resolution, principles for successful resolution, Nordic countries, fair value and amortised cost accounting, mark to market losses |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:311&r=acc |
| By: | Jesse Edgerton |
| Abstract: | Recent literature has estimated that the 2003 dividend tax cut caused a large increase in aggregate dividend payouts, which would imply that dividend taxation creates large efficiency costs relative to the amount of revenue raised. I document that dividend payouts by real estate investment trusts also rose sharply following the tax cut, even though REIT dividends did not qualify for the cut. Using REITs as a control group in a simple difference-in-differences framework produces small and statistically insignificant estimates of the effect of the tax cut on aggregate dividend payouts. I further document that the ratio of dividend payouts to corporate earnings changed little after the tax cut, and that the ratio of dividend payouts to share repurchases fell dramatically. These facts suggest that contemporaneous increases in earnings and investor demand for payouts drove the observed increases in aggregate dividend payouts, with at most a modest role for the tax cut. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2010-34&r=acc |
| By: | Simone Pellegrino (Department of Economics and Public Finance "G. Prato", University of Torino); Achille Vernizzi (Department of Economics, Business and Statistics, University of Milano) |
| Abstract: | According to Kakwani and Lambert (1998), an equitable income tax should respect three axioms related to each taxpayer’s tax liability, average tax rate and post-tax income: whenever taxation determines unequal tax treatments among equals or modifies pre-tax ordering, it influences the potential vertical effect of the tax through three types of inequity. Following the authors’ measurement system, we investigate changes in axiom violations due to the 2007 Italian personal income tax reform, that introduced significant changes in the tax structure. Our microsimulation model uses as input data those provided by the Bank of Italy in its Survey on Households Income and Wealth in the year 2006; estimates of the distribution of taxpayers are very close to the Ministry of Finance official statistics. The analysis considers both the individual and equivalent household gross income distribution and evaluates the decomposition with and without surtaxes. Main findings suggest that both in the 2006 and 2007 tax system most of the overall violations concern the axiom demanding the average tax rate to be a non decreasing function with respect to the gross income; the axiom requiring richer taxpayers to pay higher tax liabilities than poorer ones and the axiom requiring the tax to do not introduce re-rankings in the pre-tax income order present minor violations. The 2007 reform enhances both the potential redistributive effect, that is the one that could be obtained without axiom violations, and the axiom violations: the net result is a small positive variation of the actual redistributive effect. These phenomena appear more relevant for taxpayers than those for equivalent households. For what concerns taxpayers, the 2007 reform has modified also the composition of the three axiom violations, that remains almost the same whenever equivalent households are considered. Finally, focusing on each decile of the income distribution, regressivities are concentrated in the bottom five deciles of the income distribution both for taxpayers and equivalent households. |
| Keywords: | Personal Income Tax, Redistributive Effect, Horizontal Inequity, Reranking, Microsimulation Models |
| JEL: | C81 H23 H24 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:tur:wpaper:14&r=acc |