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on Accounting and Auditing |
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Issue of 2024‒06‒17
six papers chosen by |
| By: | Maksym Lazirko |
| Abstract: | The intersection of quantum theory and accounting presents a novel and intriguing frontier in exploring financial valuation and accounting practices. This paper applies quantum theory to cost accounting, specifically Work in Progress (WIP) valuation. WIP is conceptualized as materials in a quantum superposition state whose financial value remains uncertain until observed or measured. This work comprehensively reviews the seminal works that explored the overlap between quantum theory and accounting. The primary contribution of this work is a more nuanced understanding of the uncertainties involved, which emerges by applying quantum phenomena to model the complexities and uncertainties inherent in managerial accounting. In contrast, previous works focus more on financial accounting or general accountancy. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.00047&r= |
| By: | Li, Boyao |
| Abstract: | Monetary policy operations affect bank balance sheets (BBSs). This study develops a balance sheet model to examine the impacts of monetary policy operations on banks’ ability to supply funds. That ability is assessed using the balance sheet capacities provided by regulatory risk management instruments. The balance sheet approach views a monetary policy operation as a transaction between the central bank and a commercial bank, modeling the transaction as multiple changes to the BBS. This study identifies and distinguishes the effects of multiple changes in the BBS on balance sheet capacity. A balance sheet change resulting from a monetary policy operation may positively or negatively affect balance sheet capacity. Thus, a monetary policy may have a positive and a negative effect simultaneously. Positive (negative) effects result from balance sheet changes that reduce (increase) bank risks, as measured by regulations. As regulatory stringency decreases, the positive effects increase, whereas the negative effects remain unchanged. A BBS capacity channel of monetary policy is also shown. |
| Keywords: | Balance sheet; Banking; Monetary policy; Monetary transmission; Regulation |
| JEL: | E51 E52 E58 G21 G28 |
| Date: | 2024–04–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120882&r= |
| By: | José M. Domínguez; Carmen Molina; Ana Patricia Montes |
| Abstract: | The purpose of this paper is to analyse the tax proposal made in the United States for the taxation of billionaires, which introduces elements of the concept of income in the Schanz-Haig-Simons tradition. In particular, attention is paid to the tax treatment of unrealised capital gains, which marks an important difference between the different personal income tax models. The theoretical background is reviewed, the problems of its practical application are also addressed, and a quantitative comparison of the implications of recurrent and deferred taxation options is made. |
| Keywords: | personal income tax, billionaires tax, Haig-Simons model. |
| JEL: | H24 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ise:remwps:wp03262024&r= |
| By: | Roberto Perli |
| Abstract: | Remarks at 2024 Annual Primary Dealer Meeting, Federal Reserve Bank of New York, New York City. |
| Keywords: | Federal Reserve Balance Sheet; Treasury securities; Federal Open Market Committee (FOMC); federal funds; monetary policy; reserves; balance sheet runoff |
| Date: | 2024–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednsp:98250&r= |
| By: | Stephen G. Cecchetti; Jens Hilscher |
| Abstract: | In response to the Global Financial Crisis, central banks engaged in large-scale asset purchases funded by the issuance of reserves. These “unconventional” policies continued during the pandemic, so that by 2022 central banks’ balance sheets had grown up to ten-fold. As a result of rapidly increasing interest rates, these massive portfolios began producing substantial losses. We interpret these losses as fiscal policy consequences of quantitative easing and stress that they must be balanced against the prior benefits of implementing purchase policies. Importantly, losses differ qualitatively depending on whether the central bank chooses to buy domestic or foreign assets, thus resulting in transfers either within or between countries. Effects of losses may differ due to accounting rules (when losses are realized) and when the fiscal authority compensates for losses (the structure of indemnification agreements). Data from the Federal Reserve, the Eurosystem, and the Bank of England show that maximum annual losses are between 0.3 and 1.5 percent of GDP. By contrast, the Swiss National Bank is sustaining losses up to 17 percent of GDP. |
| JEL: | E42 E52 E58 E63 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32478&r= |
| By: | Michelle W. Bowman |
| Date: | 2024–05–28 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgsq:98296&r= |