Value Accounting Research Articles

The economic nature and process of formation of accounting estimates and accounting valuations

Subject. Amendments to IAS 8 and, as a result, the revision of the essence of the category Accounting Estimate necessitate the improvement of the Russian methodological framework based on the previous version of the International Standard. When conducting an audit in Russia in accordance with international standards, auditors analyze the category Accounting Estimate, the essence of which is described in IFRS. The article discusses the discrepancy between the essence of the category Accounting Estimate used in the Russian practices of accounting and auditing. Objectives. The article aims to study the essence of the category Accounting Estimate used in the Russian accounting practice, conduct a comparative analysis of the category under study and the category Accounting Estimate in the International Standards on Auditing (ISA) and Accounting Valuation in the International Financial Reporting Standards (IFRS). Methods. For the study, I used a systems analysis, the method of comparative research, structuring information, data grouping, deduction, and other methods. Results. The article clarifies the definitions of the categories Accounting Estimate and Accounting Valuation, distinguishes these categories, and proposes an interrelated categorical system that unites the concepts under consideration. In addition, the article presents the author-developed consolidated list of disclosures of information on accounting estimates and related accounting estimates in financial statements. Conclusions. The proposals made can increase the degree of harmonization of Russian and International Standards, unify Russian accounting and auditing practices in relation to accounting valuations and accounting estimates.

Transition to intelligent accounting and reporting concepts. Formation of an intellectual valuation concept

Previously, in one of our publications, we proposed categories of digital concepts for accounting, reporting, analysis and auditing and justified their content. The rapid development of technology that has taken place since that time allowed us to assume that today it is already possible to talk about intellectual concepts in the above areas, including the intellectual concept of valuation in accounting and reporting. These questions are explored in this article. When conducting research, methods such as analysis and synthesis, grouping method, comparison, analogy method, logical approach, systematic approach were used. As a result of the research carried out in this work, proposals were made regarding the formation of an intellectual concept for valuation of accounting objects and reporting elements, as well as intellectual concepts of accounting and reporting in general. The results obtained in this article will be useful to a wide range of readers interested in the development of modern accounting and reporting, including valuation, which can be used in the educational process of higher educational institutions, as well as in the practical work of accounting departments of modern organizations.

Free Cash Flow and Short-term Debt of Firms Listed at the Nairobi Securities Exchange Kenya

The short-term debt account's value is crucial in assessing the performance of the business. Free cash flow is the amount of money a business has left over after covering its cash outflows for operating costs and capital asset maintenance. If a company takes on more debt, it will have less free cash flow available for equity in the current year. Since the debt has been paid off and does not need to be repaid, this decrease is offset in the upcoming years by a rise in free cash flow to equity. The exact opposite occurs if the company takes on additional debt. The study was anchored on free cash flow theory and trade off theory. The study applied secondary data obtained from the firms from 2007-2011. Panel data was used to increase data observations. The data was initially analysed using pooled ordinary least squares (OLS) regression model. The result showed a positive and significant relationship between free cash flow and short term debt of firms. With this result, it is recommended that managers of listed firms on NSE should assess the company’s overall financial flexibility and short term debt needs to determine the optimal balance between free cash flow and short term debt as excessive reliance on free cash flow for short term debt repayment may increase vulnerability.

Improving basic terminology regarding valuation in accounting and reporting

For any organization, the basis of its accounting and reporting is valuation. At the same time, as our research has shown, today the basic terminology in this area still needs significant improvement. This article is devoted to improving this terminology. The following methods were used in the research: analysis and synthesis, comparison, grouping method, logical approach, systematic approach, method of analogies. As a result of the research, this article critically analyzes the basic terminology used in relation to the category of valuation in various accounting and non-accounting sources, and presents the author’s view of this terminology, meeting the requirements of modern times. The results obtained in this work will be of interest to a wide range of readers who analyze various problems of accounting and reporting, including the valuation of accounting objects and reporting elements. Also, the results reflected in this article can be used in the educational process of higher educational institutions and in the practical work of accounting departments of all modern organizations (including healthcare). In addition, the results of this study can be used in the development and improvement of relevant regulatory documents on accounting and reporting.

Research on the Value Accounting and Industrial Impact of Ecosystem Tourism Health Services in Xiamen City

The tourism health services provided by the ecosystem is one of the important components of ecological products and one of the main paths for the transformation from green waters and mountains to golden mountains and silver mountains. It not only achieves value transformation through tourist tourism health activities, but also drives the development of related sectors to indirectly transform value. This article uses the input-output method to calculate the value of ecosystem tourism health services in Xiamen City in 2017. Based on this, relevant sector impact analysis was conducted to provide support for improving the ecological product value evaluation technology system and expanding the value realization path. The results show that the value of ecosystem tourism health services in Xiamen in 2017 is 64,767 billion yuan, with a contribution rate of 14.88% to GDP; The added value of tourism health services is 7,292 billion yuan, contributing 12.85% to the GDP added value. The driving effect of tourism health services in Xiamen on the national economy is higher than its driving effect, with a reaction coefficient of 1.146 and an influence coefficient of 0.745, respectively. Among them, the impact on infrastructure construction, finance and high-tech sectors is relatively large. The complete consumption coefficient is 0.841, 0.408 and 0.102 respectively, and the complete distribution coefficient is 0.145, 0.243 and 0.533 respectively. The identification of the main influencing sectors can provide an important foundation for further carrying out sector contribution rate accounting, accurately quantifying the value of ecological products, and promoting model path innovation.

Modern problems of goodwill valuation in accounting and reporting and ways to solve them

Goodwill valuation issues are among the most problematic for modern accounting and reporting. This article identifies the most pressing problems in this area today and presents proposals for their solution. During the research, such methods as the method of analogies, logical approach, analysis and synthesis, comparison, grouping method, systematic approach were used. As a result of the research, proposals were made regarding the terminology used in the above area, as well as the author’s view on the rules for the initial and subsequent evaluation of goodwill, both acquired in a business combination and created within the organization. The results obtained in this article will be useful to a wide range of readers interested in modern problems of accounting and reporting, including the valuation of assets at their recognition and after their recognition in accounting. The results obtained in this work can also be applied in the educational process of higher educational institutions, in the practical work of accounting departments and in the development and improvement of relevant regulatory documents on accounting.

The Scientific Status of Acceptance and Commitment Therapy: An Analysis From the Philosophy of Science

How good is the science in the Acceptance and Commitment Therapy (ACT) program? This article examines ACT philosophy, theory, and research on five dimensions: (1) the quality of its meta-science; (2) the clarity of its constructs; (3) the psychometrics of its principal measures; (4) the adequacy of its account of values; and (5) the quality of its research. Significant problems are found in each dimension, and suggestions for improvements are offered. ACT aligns with a Machiavellianism that is problematic in accurately describing these commitments and constituting a meta-stance that permits problematic values to be embraced. Relatedly, there is evidence of a positive bias in ACT research that has been ignored methodologically and in summaries of ACT. These problems justify significant skepticism regarding any claims from the science associated with ACT. Avoiding questionable research practices, psychometrically problematic measures, and research designs that weaken valid causal inference is recommended. Finally, an increased commitment to open science, intellectual humility, and severe testing is recommended.

A Commented Review of Eco-Product Value Realization and Ecological Industry and Its Enlightenment for Agroforestry Ecosystem Services in the Karst Ecological Restoration

The achievement of eco-product value and the growth of eco-industry can boost the economic advancement of karst areas. The findings of a statistical analysis of 520 relevant studies reveal the following: (1) From a time series perspective, the amount of papers increase with each wave of research; (2) contents mainly concentrate on four aspects, namely, ecosystem services supply (8.46%), value accounting (10.58%), value realization (37.88%), and eco-industry (30.38%); (3) the study areas are primarily concentrated in Asia (85.96%), Europe (7.12%), and North America (4.04%), most of which are located in China’s karst areas with vulnerable ecological environments and regions that are aware of eco-product values; and (4) research frontiers are reflected through four aspects of the ecosystem, namely, services supply, value accounting, value realization, and the eco-industry. Based on the analysis in this paper, it can be concluded that paths, mechanisms, and models for eco-product value realization are still slow. Therefore, to support the growth of karst agroforestry ecosystem services, it is imperative to further research the capacity of agroforestry ecosystem services supply, value accounting systems, ecological compensation mechanisms, the value realization models of eco-products, and the formation mechanism of eco-industries.

How Requests Give Reasons: The Epistemic Account versus Schaber's Value Account

How Requests Give Reasons: The Epistemic Account versus Schaber's Value Account

A Classification System for the Sustainable Management of Contaminated Sites Coupled with Risk Identification and Value Accounting

Currently, site contamination is considered to be a sustained, international environmental challenge, and there is an urgent practical need to build a core theoretical system and technical methodology for the sustainable risk management of soil contamination, together with its prevention and control. We aim to improve the risk management of contaminated sites in the post-remediation era, in line with the current trend of sustainable development. The work is based on the theory of sustainability science and the eco-environmental zoning system., In this study, we build a conceptual model that can be used to classify the sustainable performance of contaminated sites in terms of risk management in line with the existing environmental management system for contaminated sites in China. To provide a scientific decision-making basis and technical support for the refined classification management of soil environments in China during the 14th Five-Year Plan period, five typical contaminated sites were selected for a quantitative evaluation by applying multi-technical approaches, including sociological, economic and statistical methods. The results showed that the sustainable performance of contaminated sites with regard to management was affected not only by pollution risk factors but also by potential utility benefits. Specified management strategies should be developed according to different levels of sustainability so as to achieve the goals of improving land use efficiency and enhancing urban functions.

Об организации учета дебиторской и кредиторской задолженности коммерческих предприятий в соответствии с международными стандартами в современных условиях развития экономики

The article discusses options for assessing accounts receivable and ways to reduce the negative effect of delayed payment from buyers. Valuation in accounting is the process of representing accounting objects in monetary units of measurement. In international practice, it is accepted that assets are accounted for at the purchase price, and written off at the sale price (disposal). Therefore, there is a division into the initial and subsequent assessment. As a rule, the initial assessment for liabilities is a reflection of actual costs, i.e. in the amount of the amount indicated on the invoice, and the subsequent amount in the amount of amortized costs using the effective interest rate method.

Inventory control and accounting valuation of electronic money and crypto assets in electronic transactions

The monetary basis of the digital economy is electronic money and cryptographic objects that have specific characteristics, consideration of which significantly complicate accounting and control. In order to ensure the identification, inventory and valuation of crypto assets, it is necessary to optimize the methodology and organization of accounting for electronic money transactions in the digital economy. The purpose of the article is to improve the inventory control and accounting assessment methodology from the point of view of the current and future value of electronic and cryptographic money in the context of electronic money transactions. The article substantiates the possibility of a permanent automatic inventory of electronic and cryptographic money funds based on the information synchronization of crypto exchanges (electronic transactions operators) with specialized software for automation of accounting. The procedure for carrying out inventory control of electronic money and cryptocurrencies in terms of types of electronic transactions has been improved. The features of accounting valuation of crypto assets characterized by intangible nature, significant volatility, speculative nature, confidentiality, decentralization, etc. have been determined. The methodology of accounting valuation of crypto assets has been optimized with the determination of their initial and future value in the context of distinguishing types of electronic transactions, as well as the need to revalue accounting objects used as a means of circulation or as investment and financial instruments. The methodology for valuation of newly created crypto assets has been clarified in terms of taking into account the costs of labor and social insurance, electricity and utilities, and depreciation of equipment related to the maintenance of the electronic transaction system. The use of the author's proposals will contribute to reliable and timely accounting of electronic and cryptographic money funds.

«GRÜNDRISSE EINER ÖEKONOMETRIE» – економетрична бухгалтерська теорія, розроблена в Галичині на рубежі ІХ–ХХ ст.

The materials of this article are a continuation of the published results in the publication in the previous issue, which provides a generalized comparison of the basic principles of building accounting and "traditional" econometric concepts. In this study, an analysis of the formulated methodological principles of the studied accounting (balance sheet) theory was carried out with an assessment of the methods of representation in the accounting system and the balance sheet generalization of the main objects and economic processes of the enterprise. On the basis of methods and approaches traditional for the accounting field, a scientific and critical analysis of the conceptual foundations of the researched development was carried out. From the standpoint of the contemporary development of accounting theoretical knowledge and with a focus on modern requirements for the construction of accounting and reporting systems, the view of the author of this article on the shortcomings and individual strengths of the researched development is formulated. Separate components of the researched development compared to existing modern problems in accounting and reporting systems. Some provisions of the theoretical development are evaluated from the point of view of their suitability for modern theory and practice. A comparison of the conceptual foundations of the researched development with modern practice based on international principles (standardization) of accounting data formation on the state of resources, capital and the efficiency (effectiveness) of the functioning of the economic system was carried out. Proposals about successful solutions in the studied development, which can be used for the modern development of accounting science, are formulated. The expediency of introducing into the modern system of accounting research formulated in the development of the basic principles and provisions for the creation of capital reserves (valid reserve funds), which are absolutely necessary in the modern conditions of conducting activities of any business entity, is argued. The possibility and expediency of adapting to modern conditions the principles of accounting for intangible economic resources developed in this theory, in particular the principles of their evaluation and write-off of value, are also substantiated. Modern inflationary processes require approaches to the accounting valuation of assets that are adequate to these conditions, which can be solved by using the valuation principles proposed in the development.

A new look at property, plant and equipment and approaches to their valuation in accounting and reporting of modern organizations

The development of society inevitably affects the development of accounting and reporting. At present, the development of technology is accelerating, society is increasingly moving to electronic products and services and to remote space. All this, in our opinion, makes it necessary to take a fresh look at such an accounting object as property, plant and equipment. Due to the above changes, it would be advisable to review the approaches to the valuation of these assets in the accounting and reporting of modern organizations (including healthcare organizations). This article is devoted to presenting a new look at property, plant and equipment and approaches to their valuation in accounting and reporting that meet the requirements of modern times and the future development of society. When conducting research, such methods as analysis and synthesis, the method of analogies, comparison, the grouping method, the logical approach, the systematic approach were used. The research results obtained in this article can be applied in the practical work of the accounting departments of modern organizations, in the educational process of higher educational institutions and in the development and reform of relevant regulatory documents on accounting and reporting in various countries. The results presented in this paper will also be useful to a wide range of readers interested in modern problems of accounting and reporting of domestic and foreign organizations (including healthcare organizations).

Combining spatial planning and ecosystem services value to assist ecological compensation decision-making—A case study of Yangtze River Delta ecological barrier, China

China’s ecological compensation (EC) is based on the property rights structure of public ownership of natural resources, which should be based on the spatial planning, which is defined by local government as the boundary of property right management and the distribution of development power. This study combined spatial planning and ecosystem service value (ESV) accounting to design a decision-making framework of EC, which includes “Subject choice, Value accounting, Priority evaluation, Policy supply”. We selected 32 counties (districts) in the Yangtze River Delta region as the research object with the consideration of spatial planning and expert advice, and found that the implementation of EC slowed down the urbanization process and promoted the increase of ecological space. We conducted an accounting and sensitivity analysis on the spatial and temporal changes of ESV in the region from 2000 to 2019, and finally determined the amount and priority of accepting EC. The research results show that the ESV in the study area shows a general trend of increasing and then decreasing in time, and a spatial pattern of high in the south and low in the north and high in the east and low in the west. Forestland and water area are the main providers of ESV in the study area. The sensitivity coefficients of each type of ESV do not change much in each period, but the coefficients between the types have large differences. The total amount of EC in the Yangtze River Delta ecological barrier (YRDEB) is RMB 38,098.11 billion, and Shitai County is the area with the highest priority for compensation. We believe that this decision-making framework has the potential to be applied to the implementation of EC in other regions of China. At the same time, it can also be used to enrich the international views on EC research.

Information system assisted knowledge accounting and cognitive managerial implications

PurposeThis paper examines issues that focus on the importance of accounting data generated knowledge information and its role in modern business. The cognitive aspect of this research reflects the ability of companies and its employees to apply knowledge for managerial purposes using accounting data.Design/methodology/approachUsing a questionnaire, a five-factor model related to information communication, information cognitive utilization, functional optimization, applicability and cognitive efficiency was created.FindingsFindings present a series of complex correlations highlighting possible actions to utilize knowledge as a tool for management. Information is obtained regarding the management of knowledge and the adoption of information systems.Research limitations/implicationsThe results reflect the limited implementation of intellectual capital practices and understanding of knowledge as a financial tool for executives and employees. Based on the above, an attempt was made to formulate the questions for the careful identification of the factors.Practical implicationsRapid developments in information and communication technologies, together with a realization that knowledge is a resource of general and cost strategic importance, changed the operational structures of companies, shifting value from materials to intangible assets. This paper demonstrates how multiple variables are correlated and how small changes could help increase intellectual capital and facilitate the construction of knowledge based systems.Social implicationsThe need for an accounting valuation of intellectual capital in order to present the true picture of business value is evident. This paper illustrates factors such as interactive communication and systematic cognitive efficiency or the monetization of information as a preliminary step for future valuation and management intellectual capital models.Originality/valueDirect access to sufficient and reliable information, lead to the search for effective tools for the creation, aggregation and exchange of knowledge. The latter becomes a key goal for information systems. Emphasis is placed on the benefits and critical success factors of knowledge management systems, as essential information systems to support and enhance organizational processes.

Value Realization and Optimization Path of Forest Ecological Products-Case Study from Zhejiang Province, China.

In the last decade, more and more attention has been paid to the efficiency of ecological products’ value in the literature. Studying the value-conversion efficiency of forest ecological products can measure and reflect the huge value contained in forests, which is of great significance to promote the transformation between “clear water and green mountains” and “gold and silver mountains” as well as solve the problem of economic development and environmental protection. Studying the value-conversion efficiency of forest ecological products can scientifically evaluate the results of the mutual transformation of “clear water and green mountains” and “gold and silver mountains”, which is of great significance for deepening the theory of the “two mountains”. This paper took Zhejiang Province as the research object, constructed an index system of forest ecological products’ value accounting, used the super-SBM model and Malmquist index to calculate the conversion efficiency of forest ecological products’ value, and proposed optimization paths according to the research results. The results showed that: (1) From 2000 to 2020, the value of forest ecological products in Zhejiang Province showed a fluctuating upward trend. In 2020, the total value of forest ecological products was RMB 973.717 billion. Among them, the value of material products was RMB 12.560 billion, the value of ecological regulatory products was RMB 726.323 billion, and the value of cultural service products was RMB 234.834 billion. (2) There were great differences in the value-conversion efficiency of forest ecological products among cities in Zhejiang Province, but the overall trend was steady and developing in a positive direction. (3) The total-factor productivity of forest ecological products in Zhejiang Province showed a fluctuating trend, and its growth was mainly limited by the technical efficiency and technological progress index. (4) The main reasons for the conversion-efficiency loss of forest ecological products’ value in Zhejiang Province were excessive input and insufficient output. The specific reasons for the loss of efficiency in different cities were different, so it is necessary to find improvement paths according to local conditions. Our research provides a new perspective for the academic community to evaluate the value-realization effect of ecological products as well as a decision-making reference for policy makers of ecological environmental protection and construction.

Replies to Critics

This article responds to the two replies, published in this issue, to my article “Ultimate Meaning: We Don’t Have It, We Can’t Get It, and We Should Be Very, Very Sad,” published in the first issue of this journal. In the first reply, Turp, Hollinshead, and Rowe present an internalist challenge to my account of value, and a relational conception of the self as a challenge to my premise that leading a life includes everything you do and aim at within the project, effort, or enterprise of living and leading a life. I respond to the internalist challenge by showing it does not succeed in inserting values into acts. I respond to the relational conception of the self by noting that, regardless of the nature of the self, the project of leading a life includes all the things you do and aim at within that project, effort, or enterprise. Thus, we can accept a relational account of the self and allow for other-regarding values but that does not change the location of our pursuit of those values: they remain located within the meta-project of leading a life, leaving the meta-project of leading and living a life with nowhere to reach for a point. In the second reply, Cowan argues against feeling sad about life’s pointlessness. In response, I argue that sad facts warrant sadness. I further argue that there are reasons other than happiness to value truth, including the very, very sad truth about the ultimate pointlessness of our lives.

Wetland ecosystem service function and its value accounting:A case study of Fuzhou City, China.

Wetland plays an important role in ecological protection and social development. Scientific and rational evaluation of the values of wetland ecosystem service is the basis of protection and sustainable utilization of wetland resources. How to scientifically and effectively assess the wetland ecosystem gross ecosystem product (GEP) and make it into the national GDP accounting system are the focus of the scientific community and government departments. In this study, the accounting framework of wetland ecosystem GEP was constructed. Based on multi-source data and from the aspects of function and value, the accounting of wetland GEP in Fuzhou City was carried out. The results showed that the GEP of wetland ecosystem in Fuzhou City was 239.23 billion yuan in 2015. Such value mainly came from the ecological regulation service value (157.869 billion yuan), which accounted for 66.0% of the total and was about 2.2 and 15.6 times of the product supply service value and cultural service value. Among the ecological regulation services of wetlands, hydrodynamic regulation service and climate regulation service were the highest. Together, they accounted for 82.9% of the ecological regulation service value. The ecological regulation value per unit area of wetland in Fuzhou City was 1347.8 thousand yuan·hm-2, which was higher than the mean level of the whole country. In the districts and counties of Fuzhou City, the value of wetland ecosystem in Minqing County was the largest, about 88.83 billion yuan, accounting for 40.1% of the total value of product supply and ecological regulation. In terms of types, coastal wetlands in Fuzhou City had the largest function of ecological regulation services, which was about 2.5 times of that of river wetlands and constructed wetlands. The accounting of GEP of wetland ecosystem in Fuzhou City is an important practice for the conviction of "lucid waters and lush mountains are invaluable assets", which would provide technical support for guiding local government to scientifically manage wetland ecosystem.

Digital Financial Assets: Problems of Recognition, Valuation and Legal Regulation in Accounting

The article reveals the author’s vision of the recognition, valuation and legal regulation of accounting of digital assets at company level.
 The economic nature of cryptocurrency is discussed through interpreting the functions of money: a measure of value, a means of circulation, a means payment and accumulation, and the global money. It is concluded that cryptocurrency does not comply with the classical definition of “money”, because it does not feature its main functions. But it can be said that cryptocurrency constitutes the first opened, digital alternative currency able to take the form of traditional money. 
 The procedure for cryptocurrency valuation in the business stocks and intangible assets is analyzed. In cases when a business entity is intended to buy cryptocurrency as a commodity, the transactions related to cryptocurrency flows should be recorded on the account 28 “Commodities”, whereas the transactions related to cryptocurrency production should be recorded on the account 26 “Finished products”. 
 The proposed improvements in cryptocurrency accounting in the company stocks will be realizable when the transactions on cryptocurrency purchase or production (mining) are performed on permanent basis. The recognition of cryptocurrency in the intangible assets of a company will be feasible on the following conditions: cryptocurrency does not have a physical form; it can be identified; it is a non-monetary asset. The distinctive features of Bitcoin in relation to financial instruments are outlined, ways of cryptocurrency production using ІСО, mining, forging etc. are discussed. 
 Regarding the legal regulation of cryptocurrency circulation in Ukraine, it is revealed that no normative and legal document exists to specify the legal status of the notions “virtual assets”, “digital financial assets” or “cryptocurrency”. By now, the draft law has been approved, intended to regulate purchase, sale and taxation of virtual assets. The official recognition of digital financial assets and blockchain technology is expected to promote the transition of Ukraine to the digital economy. This transition is going to give rise to the emergence of a new object of accounting, e. g. digital financial assets. The authors’ vision of the normative and legal regulation of cryptocurrency accounting at micro- and macrolevel allowed to propose a new national standard of accounting “Digital financial assets”, to develop a methodological framework for reporting the data on digital financial assets and their disclosure in the financial statements of companies.