Income Accounting Research Articles

PERLAKUAN AKUNTANSI PENDAPATAN PADA AHASS MIRA MOTOR DI GIANYAR

Accounting standards provide guidelines for the accounting treatment of an event. These guidelines are reflected in the definition, measurement, evaluation, recognition and disclosure of elements or financial statement items. AHASS Mira Motor is a company engaged in the business of trading and services whose business activities are selling motorcycle parts. The purpose of this study was to analyze the accounting treatment of income on AHASS Mira Motor Gianyar in accordance with ETAP financial accounting standards. The results of the study found that revenue recognition on AHASS Mira Motor Gianyar did not conform to ETAP financial accounting standards regarding revenue, revenue measurement on AHASS Mira Motor Gianyar were in accordance with ETAP financial accounting standards on revenue, and disclosure of income on AHASS Mira Motor Gianyar did not comply with standards ETAP financial accounting of income.

ВПЛИВ ЧИННИКІВ НА МОДИФІКАЦІЇ В СИСТЕМІ ОБЛІКУ ФІНАНСОВИХ РЕЗУЛЬТАТІВ ОСНОВНОЇ ДІЯЛЬНОСТІ БУДІВЕЛЬНИХ ПІДПРИЄМСТВ

A retrospective of the origin and interpretation of the economic essence of profit is examined. The substantiation of profit by representatives of various schools of political economy is covered. It is established that the beginning of in-depth scientific substantiation of profit is characteristic of the times of mercantilism. The research of representatives of classical political economy in the identification of profit is considered important. The subject of their attention was wealth and forms of its growth in order to meet social needs.Theories of profit determination are identified. The main positions on the definition of profit are outlined by such theories as: compensatory, functional, factor, labor and psychological. The identification of profit in the current accounting standards is investigated. The peculiarities of construction are highlighted and their influence on key modifications in the system of accounting of incomes, expenses and financial results of activity of construction enterprises is outlined. Among the main features of construction are the following: duration of construction; real estate of construction products under the condition of constant movement of means and objects of labor; execution of construction works in the open area; the complexity of relationships and the diversity of participants in the construction process; territorial branching of construction objects. The components of accounting policy that affect the accounting of financial results of the main activities of construction companies are studied. Peculiarities of gross debt accounting in construction are considered.It is determined that the accounting of gross debts is also an important issue today. The informational reflection of incomes, expenses, financial results of the basic activity of the construction enterprises in the financial and statistical reporting is presented. Modifications in the system of accounting for financial results of activities in the field of construction are an open discussion area of research.

Analysis of Pregnancy and Birth Rates Among Black and White Medicaid-Enrolled Teens

PurposeIn the United States, black teens overall have higher pregnancy and birth rates than whites, and it is commonly believed that minority race and low income account for this disparity. We examined racial differences in pregnancy and birth rates among teens from low-income households using Medicaid-enrollment as a proxy for low income. MethodsThis was a retrospective study of Louisiana Medicaid claims data for female teens aged 15–17 years in 2014 (n = 66,069). Pregnancy and pregnancy outcome codes were identified (n = 2,276) and analyzed for differences by black and white race. We conducted validity analyses with different rate definitions and teens' claims status. ResultsThe cohort was 36% white and 54% black. More black teens than whites lacked any claims data (15.6% vs. 12.6%; p < .001). Rates calculated as events per 1,000 person-years of Medicaid coverage showed no difference in live birth rates between white and black teens (24.6 vs. 25.8; relative incidence ratio, 1.05; 95% confidence interval, .93–1.18; p = .43); however, pregnancy rates for whites were higher than those for blacks (42.7 vs. 36.1; relative incidence ratio, .85; 95% confidence interval, .77–.93; p < .001). ConclusionIn contrast to national trends, which include teens from diverse racial and socioeconomic backgrounds, Louisiana Medicaid-enrolled teens aged 15–17 years had equal birth rates regardless of black or white race, and whites had higher pregnancy rates. Decreased racial disparities in pregnancy and birth rates among these adolescents highlights socioeconomic influences in sexual health behavior and a need to examine the interplay of risk factors contributing to racial disparities seen among adolescents nationally.

Financial Fragility Across Europe and the US: The Role of Portfolio Choices, Household Features and Economic-Institutional Setup

This paper investigates households’ financial fragility in twelve European countries and in the US by employing the first wave of the Household Finance and Consumption Survey (HFCS) and the 2010 Survey of Consumer Finances (SCF), respectively. Financial fragility is defined by taking into account both income constraints and portfolio composition (liquidity and indebtedness). Three main results emerge. First, the estimation of bivariate probit models reveals that in all countries holding an illiquid portfolio increases the likelihood of being financially fragile, while having a mortgage generally reduces it. Second, there are relevant differences among countries in their estimated average probability of financial fragility. Finally, decomposition of these differences by means of counterfactual methods provides evidence of a significant role of the country’s economic-institutional setup in providing a safety net against financial fragility. This is more true in Europe than in the US.

Measuring Difference? The United Nations’ Shift from Progress to Poverty

This article examines how the United Nations Development Program (UNDP) redefined their idea of development over the two decades from 1990, no longer presenting it as only a matter of economic progress but instead focusing more on the problem of poverty and its reduction. This change of definition was closely associated with changes in the preferred measurement of development, from average income (based on national income accounting) to the proportion of the population holding certain characteristics of what it meant to live in poverty (instantiated in various index number formulations). Measurements of development thus became direct measures of socioeconomic difference, not just between nations, but also within nations. This change was designed to create numbers that would be effective in capturing and communicating those differences in ways usable for both policy and public purposes. Those numbers thus provided a resource for fighting poverty reduction—though the UNDP had few powers to hold governments to account.

Fair value accounting and value relevance of equity book value and net income for European financial firms during the crisis

This paper examines whether and how the level of exposure to fair value accounting moderates the changes in the value relevance of equity book value and net income during a crisis period. Using a sample of European listed financial firms over 2005–2011, our analysis confirms prior literature that the value relevance of book value of equity increases, while that of net income decreases during the financial crisis. More importantly, our findings offer robust support for the hypothesis that the impact of the crisis is less pronounced for firms whose financial statements are more exposed to fair value accounting. This evidence can be explained by the increased valuation weight placed by investors on the book value of equity relative to net income for firms with more exposure to fair value in the pre-crisis period.

ПІДХОДИ ДО ОБЛІКУ ДОХОДІВ ЗА МІЖНАРОДНИМИ ТА НАЦІОНАЛЬНИМИ СТАНДАРТАМИ

ПІДХОДИ ДО ОБЛІКУ ДОХОДІВ ЗА МІЖНАРОДНИМИ ТА НАЦІОНАЛЬНИМИ СТАНДАРТАМИ

Institutionalism in Action: Balancing the Substantive Imbalances of “the Economy” through the Veil of Money

Scholars working on the history of economics and economic governance assume national income accounting emerged naturally out of Keynesian concerns with economic growth and wartime needs. This paper provides an alternative and more complex genealogy, arguing instead that income accounting was born out of a governmental project, implemented by institutionalist economists at the National Bureau of Economic Research (NBER) during the interwar period, to manage “the business cycle.” Bridging the literatures on the history of economic policymaking of the interwar period and the postwar triumph of “American Keynesianism,” it shows that institutionalists developed income accounting as a knowledge infrastructure to monitor inter-sectoral imbalances that generated cyclical fluctuations. Called the National Income and Product Accounts (NIPA) System, this infrastructure constructed “the economy” as a composite statistical object, composed of many disparate, nonfungible substantive elements that could not have been otherwise patched into a coherent whole. Wrapping these elements into the veil of money, the NIPA System became the interface through which policymakers intervened in intersectoral imbalances at the level of monetary flows with fiscal tools.

Is Accounting an Information Science?

Abstract The central result is an equality connecting accounting numbers with information. \ln \left( 1+\frac{income}{assets}\right) =r_{f}+I\left( X;Y\right) , r_{f} is the risk free rate, ln is the natural logarithm, Y is the outcome of interest, X is the information signal about Y , and I(X;Y) is a Shannon information measure. The equality is derived using economic income accounting; it is shown to hold, under appropriate conditions, for declining balance and straight line depreciation methods. Some social welfare implications are explored.

Identifying Different Types of Tax Avoidance: Implications for Empirical Research

ABSTRACTWe provide a theoretical framework to identify when measures of tax avoidance reflect tax avoidance related to, and unrelated to, earnings management. The influence of earnings management on measures of tax avoidance occurs because pretax financial accounting income is used as a benchmark against which tax payments are measured. A firm that manages earnings upward without paying additional tax on the managed earnings can be considered to have avoided tax. We demonstrate that a measure of tax avoidance that has been used in prior research—the ratio of cash taxes paid to pretax operating cash flows—captures tax avoidance that is unrelated to earnings management. Use of this alternate measure in empirical studies can avoid attributing earnings management results to tax avoidance.JEL Classifications: M41; H25; G12.

Measuring economic progress: income accounting

Measuring economic progress: income accounting

Finance and Intangibles in American Economic Growth: Eating the Family Cow

The American economy changed rapidly since the World Wars as producers expanded new products and services in communication, computers and transportation. We kept track of this transformation through the National Income and Product Accounts (NIPA), a set of statistical constructs designed before these changes started. The national accounts stretched to accommodate these new and growing activities, but efforts to fit them into our measurement of national product and of economic growth have not yet borne fruit. I argue in this paper that our current economic data fail to describe accurately the path of growth in our new economy. They fail to reveal that the United States is consuming its capital stock now and will suffer later, rather like killing the family cow to have a steak dinner.

ФОРМУВАННЯ ТА ОБЛІК ДОХОДІВ І ВИТРАТ ПІДПРИЄМСТВА

ФОРМУВАННЯ ТА ОБЛІК ДОХОДІВ І ВИТРАТ ПІДПРИЄМСТВА

ТЕОРЕТИЧЕСКИЕ АСПЕКТЫ УЧЕТНО-АНАЛИТИЧЕСКОГО ОБЕСПЕЧЕНИЯ УПРАВЛЕНИЯ ДОХОДАМИ И РАСХОДАМИ

The article presents the results of research of theoretical positions in relation to accounting and analytical categories, such as income and expenditure. In the scientific and professional community, there are many disputes and discussions on the theoretical aspects of accounting and analytical support (AAS) of income and expenditure financial management. Globalization of the economic space; 4.0 industrialization; digitalization (digital economy); nooeconomics, and other aspects, led to the need for the development of scientific theoretical thought. The purpose of this study is to develop new trajectories of financial management of income and expenditure, which is focused on the needs of management and users of accounting and analytical information. The results of the study are to expand and refine the theoretical positions in relation to the AAS financial management of income and expenditure. In the process of research of controversial and problematic issues of the financial management of income and expenditure, the methods of scientific knowledge, analysis, synthesis and specific methods of factor deterministic dependence that characterize the results of the economic entity's activity have been used. The practical and scientific significance lies in the design and further development of the theoretical positions of the AAS of financial management of income and expenditure. It should be recognized that the essence of income and expenditure from the positions of accounting and analytical categories will significantly expand the theoretical positions of the regulatory requirements of the Russian Accounting Standards (RAS), which contributes to the integration of accounting types in accordance with IFRS applied in the UAO system. In its turn, this will allow financial management to solve important problems of development of the economic entity related to the increase of profits, its calculation using different methods, depending on the goals.

Шляхи вдосконалення обліково-аналітичного забезпечення діяльності комунальних некомерційних підприємств охорони здоров’я

The article examines the organizational aspect of accounting for incomes and expenses, as well as the problems of accounting for incomes and expenses of the non-profit communal healthcare enterprises (CNP HA). The accounting-analytical information is considered as the socio-economic basis of business globalization, which is relevant in the context of strengthening the value of accounting and reporting for the further development of economic science and practice. The essence of the concept of «accounting-analytical provision of social needs», ways, forms and factors of its improvement are researched. The directions of improvement of the accounting-analytical provision of the activities of the non-profit communal healthcare enterprises and ways to modernize the methodology of carrying out the internal audit of incomes and expenses are proposed. The accounting-analytical provision of the enterprise is one of the main prerequisites for the effective functioning of any enterprise and an important element of the formation of the efficient managerial decisions. The purpose of the accounting-analytical provision of the activities of the CNP HA is to provide the management staff of the enterprise with complete, timely and reliable information for the adoption of current and strategic managerial decisions. The accounting and reporting system should be formed in accordance with the adopted methodological principles and approaches to analytical researches aimed at a comprehensive impact on the activities of the enterprise to ensure profit and strengthen its financial position in the market. Priority directions for improving the principles and methods of accounting and auditing of incomes and expenses of CNP HA are defined; the same is considered with regard to the economic analysis to maximum satisfying the needs of users in making managerial decisions as to the dynamic development of the CNP HA. The proposed directions for improving the methodology for carrying out an internal audit of incomes and expenses allow for operational analysis and control of incomes and expenses, and in the future use this information to make effective decisions on the functioning of the non-profit communal healthcare enterprises in the long term perspective.

Impact of Corporate Social Responsibility Disclosures on Financial Performance of Listed Manufacturing Companies in Sri Lanka

This study examines whether corporate social responsibility (CSR) towards primary stakeholders influences the financial performance (FP) of listed manufacturing companies (LMC) in Colombo stock exchange (CSE) in Sri Lanka. Data on dependent variable and independent variables was collected from annual reports of thirty listed manufacturing firms for the period of five years. Dependent variable of financial performance was measured by Return on Capital Employed (ROCE) which was calculated from relevant figures which are available in statement of financial position and income statement and accounting notes. Content analytical technique was used to developed content indexes on five stakeholders groups namely Community, Customers, Employees, Environment and Investors based on disclosures which are available in global reporting initiative-G3 guidelines. The regression analysis of the study has found that there is a statistically significant positive association between CSR indexes on stakeholders and FP. The study firmly concluded that higher social responsiveness of listed manufacturing firms in Sri Lanka yielded higher financial performance than the firms which are lower position in term of social responsiveness.

ОБЛІКОВО-АНАЛІТИЧНЕ ЗАБЕЗПЕЧЕННЯ ЕЛЕКТРОННОЇ КОМЕРЦІЇ В АГРАРНОМУ БІЗНЕСІ

The article is devoted to the problems of accounting and analytical support of e-commerce in agrarian business. The main ways of developing e-commerce at the agricultural enterprise level are considered as one of the ways to increase the efficiency of its operation: providing competitive advantages by reducing the costs of interaction, expanding markets and business areas and identifying new channels of sales, attracting new and improving old customer service, greater mobility and responsiveness in managerial decision-making. Dynamics of modern internet audience from the point of view of the client component of internet users of web resources is analyzed. The e-commerce industry is described; the most popular shopping sites and the structure of online products are identified. Possibilities of conducting transactions on the internet with the help of electronic trading platforms, message boards and online shops are considered. The order of accounting in the system of accounts the creation and use of the website of the enterprise is analyzed taking into account the way of creation of the site – by its own forces or by a specialized institution. In reflecting the business activities of the enterprise, in terms of accounting and analytical support of doing business, the costs and income they receive under traditional and e-commerce were separated, as most farms conduct mixed activities using traditional sales channels and the sale of products via the internet. The methodology accounting of incomes, expenses and financial results of agricultural enterprises in the section of traditional and electronic commerce is described. The system for accounting the income, expenses and financial results is considered taking into account the sphere of activity of the enterprise. The digital data that will be accumulated on the recommended accounts will form additional information about the composition and amount of such income and expenses, their impact on the financial results of the enterprise. The use of the proposed proposals will increase the efficiency of information support of the needs of internal and external users and will facilitate the process of planning, analysis, control and decision-making of optimal management decisions.

The Accumulation of Human and Market Capital in the United States: The Long View, 1948–2013

Over the 1948–2013 period, many factors significantly impacted on human capital, which in turn affected economic growth in the United States. This chapter analyzes these factors within a complete national income accounting system, which integrates Jorgenson-Fraumeni human capital into the accounts. By including human capital, a fresh perspective on economic growth across time and within specific subperiods is revealed, notably regarding the 1995–2000 and 2007–2009 periods. During the first period, the reduction in human capital investment significantly reduced apparent economic growth. In the second period, the increase in human capital investment tempered the negative impact of the Great Recession. Over the 1948–2013 period, first the post-World War baby boom, and then, the substantial increase in education led to higher economic growth than otherwise measured. As the pace of increase in education slowed and the workforce aged toward the end of the period, human capital induced growth was reduced.

The Accumulation of Human and Market Capital in the United States: The Long View, 1948–2013

Over the 1948–2013 period, many factors significantly impacted on human capital, which in turn affected economic growth in the United States. This chapter analyzes these factors within a complete national income accounting system which integrates Jorgenson-Fraumeni human capital into the accounts. By including human capital, a fresh perspective on economic growth across time and within specific subperiods is revealed, notably regarding the 1995–2000 and 2007–2009 periods. During the 1995–2000 period, the reduction in human capital investment significantly reduced apparent economic growth. In the 2007–2009 period, the increase in human capital investment tempered the negative impact of the Great Recession. Over the longer time period, first the post-World War baby boom and then the substantial increase in education led to higher economic growth than otherwise expected. As the pace of increase in education slowed and the workforce aged toward the end of the period, human capital induced growth was reduced.

Sustainability of Current Account Deficit in Turkey

Purpose: This study aims to examine the sustainability of the current account deficit in Turkey for the quarterly data between 2003 and 2018. Besides, some policy implications are made to ensure the sustainability of the current account deficit in Turkey's economy. Design/methodology/approach: The dynamics related to the sustainability of the current account deficit is analysed within the framework of the intertemporal budget constraint approach developed by Husted (1992). The long-term dynamics are empirically investigated using the Johansen cointegration test. Econometric analysis is also expanded within the framework of the Vector Error Model to reveal the short-term dynamics. Findings: The results of Johansen cointegration analysis suggest that current account income and expenses are integrated with the cointegrating coefficient less than 1, implying that Turkey has a weak form of current account deficit sustainability. Findings of the Vector Error Correction model confirm the results of long-run analysis and indicates that the deviations from the long-term equilibrium are corrected at a rate of 78% every quarter term. Research limitations/implications: The intertemporal budget constraint approach developed by Husted (1992) focuses on the equilibrium between current account income and expenses to analyse the sustainability of the foreign balance. However, the sustainability of the foreign deficit is also closely related to what kind of capital inflows is used to finance the foreign deficit. Therefore, the implications made regarding the sustainability of the current account deficit in Turkey based on the Husted model should be accepted with some reservations. Originality/value: Since external imbalances are a key challenge for most of the developing countries to provide full integration into the world economy, many empirical studies are examining the current account sustainability. The majority of these studies focus on the long-run dynamics of the current account imbalances. Unlike most of the previous studies, this paper also focuses on the short-run dynamics of the current account balance. Thus, the difference of this study from other studies stems from the examination of the dynamics of current account sustainability not only in the long term but also in the short term.