Equity Accounting Research Articles

Introduction: Accountability for Health Equity: Galvanising a Movement for Universal Health Coverage

In July 2017, IDS hosted a workshop on ‘Unpicking Power and Politics for Transformative Change: Towards Accountability for Health Equity’, with the aim of generating dialogue and mutual learning among activists, researchers, policymakers, and funders working towards more equitable health systems and a commitment to Universal Health Coverage (UHC). This issue of the IDS Bulletin is based around three principal themes that emerged from the workshop as needing particular attention. First, the nature of accountability politics ‘in time’ and the cyclical aspects of efforts towards accountability for health equity. Second, the contested politics of ‘naming’ and measuring accountability, and the intersecting dimensions of marginalisation and exclusion that are missing from current debates. Third, the shifting nature of power in global health and new configurations of health actors, social contracts, and the role of technology.For the first time in IDS Bulletin history, themes are explored not only in text but also through a selection of online multimedia content, including a workshop video, a photo story and a documentary. This expansion into other forms of communication is explicitly aimed at galvanising larger numbers of people in a movement towards UHC and the linked agenda of accountability for health equity.The articles and multimedia in this IDS Bulletin reflect the fact that while the desired outcome might be the same – better health for all – accountability strategies are as diverse as the contexts in which they have developed.

Improving Community Relations: How Police Strategies to Improve Accountability for Social Equity Affect Citizen Perceptions

Social equity research increasingly focuses on how accountability for social equity is achieved, or how public administrators improve the access, outcomes, processes, and quality of public services. This is particularly important to examine in police departments, which are more frequently using strategies such as community policing programs (CPPs), social equity performance measurement (SEPM), and ethics training to yield better community relations. This article explores how these strategies affect citizen perceptions through testing three propositions related to CPPs, SEPM, and ethics training. Findings are reported from interviews with 72 citizens, local-level elected leaders, and police officers from 12 purposively selected locales in the United States. Findings reveal that when CPPs foster more citizen involvement as decision-makers, SEPM is used to shape practice, and more ethics training is required, citizen perceptions of how socially equitable departments are increase. Further, as political leaders and departments more actively incorporate community groups, perceptions of social equity are more positive. These findings are discussed in terms of what they reveal about accountability for social equity.

Konsolidierte Rechnung: Zur Frage der wirtschaftlichen Konsequenzen der Rechtsaufsicht am Fallbeispiel der Österreichischen Universitäten

With the Act on the Organisation of Universities and their Studies 2002 (Universitatsgesetz, UG 2002), the 22 publicly funded Austrian universities gained autonomy from the governing federal ministry of science and research. With the UG, universities are funded for a three year period based on performance agreements, allocating a block grant to each university. The precise distribution within the universities is left to the discretion of the managing bodies of the universities. As Austria has gone through a reform of the federal budgeting and accounting system within the last 10 years, introducing a medium-term planning cycle, an accounting regime in close lines with IPSAS and outcome oriented budgeting incorporating gender budgeting (Rauskala & Saliterer, 2015), interest has shifted from more traditional budgeting themes towards financial management and control of financial risks, as well as balance sheet topics and with them, also consolidation. The reform is currently being evaluated by international experts. The question remains if and when Austria will take steps towards consolidated financial statements and in what way, so to say whether it will do so in full compliance or at least in close lines with IPSAS or whether some politically more opportune concepts have to be found. With the opening balance of the federal government, starting in 2013, the public universities have been presented in financial statements using the equity method. Equity accounting represents the first step towards consolidated financial statements. For defining the correct consolidation method from the economic perspective, however, the specific legislation has to be studied as it very much depends on the national context if and in what ways universities are controlled (Bergmann, Grossi, Rauskala & Fuchs, 2016). In this article, the question is raised whether the consolidation standard IPSAS 35 can be applied for the context of the Austrian public universities with their specific context of autonomy and governance. The economic perspective of international financial accounting therefore has to be compared with and contrasted to the perspective of national legislation, leading to some challenging questions regarding the governance-system and legal supervision.

Commentary on the Adjustments Required for Intercompany Transactions when Equity Accounting Under IAS 28

AbstractThe IASB has several projects on the equity method of accounting that involve the transfer of assets between an investor and its associate or joint venture. This paper provides a commentary on this issue by providing examples of alternative methods of adjusting for inter‐company profits. The underlying concepts for alternative approaches are discussed. The conclusion outlines the steps the IASB needs to take to resolve this issue.

Asset Allocation Strategy under Rate of Return, Rate of Inflation and Credit Spread Rate in Finite-Time Horizon

The global financial crisis has given a very tremendous financial market chaos in the world. Beside the reason that it caused mostly by the bubble economic, it also caused by the ignorance of default risk from bond derivatives such as CDO, CDS and SWAP. Those portfolio of bond ignored the risk of the low rating bonds, which gives a very high risk of having default. This research aims to find an optimal solution for dynamic portfolio in finite-time horizon under defaultable assets. Defaultable assets mean that the assets has a chance to be liquidated in a finite time horizon, e.g stock and corporate bond. The assets that will be used here are limited to the equity, corporate bond and money account. In this study, beside for having the risk of default, the investor will also consider the risk of market such as inflation into her investment. The indirect utility function will be used as the reference for investment decision. Further the asset allocation will be obtained by maximizing the total expected discounted utility in the time span during the investment is executed.To determine the financial defaulty assets, there are two methods that can be used, namely the reduced form and the structural methods. The first method is more applicable because the assets price can be linked with the market risk and credit risk and the latter method. The interest rate and the rate of inflation will be allowed as a representation of market risk, while the credit spread will be used as a representation of credit risk. Furthermore, the dynamic of asset prices can be derived analytically by using Ito Calculus in the form of the movement of the three risk factors above.The dynamic process of investor wealth will be derived from the dynamics of asset prices and budget constraints, which will be linked with portfolio composition. This problem will be solved using the stochastic dynamic programming method. Depending on the chosen utility function, the optimal solution of the portfolio composition can be found explicitly in the form of feedback control. The closed form solution will give the proportion of wealth between bond and money account. Furthermore, the composition of the portfolio will be given as the result. The complicated equation of bond pricing will follow recovery market value (RMV) methods. The finding model is later simulated with different possible values of the parameters. The result shows that the optimal asset allocation will depend on various parameters such as correlation between the risks, the chosen utility function and also recovery rate.

Focused maternity care in Ghana: results of a cluster analysis.

BackgroundGhana missed out in attaining Millennium Development Goal 5 in 2015. The provision of adequate prenatal and postnatal care remains problematic, with poor evidence on women’s views on met and unmet maternity care needs across all regions in Ghana. This paper examines maternal care utilization in Ghana by applying WHO indicators for focused maternal care utilization.MethodsTwo-step cluster analysis segregated women into groups based on the components of the maternity care used. Using cluster membership variables as dependent variables, we applied multinomial and binary regression to examine associations of care use with individual, household and regional characteristics.ResultsWe identified three patterns of care use: adequate, less and least adquate care. The presence of a female and skilled provider is an indicator of adequate care. Women in Volta, Upper West, Northern and Western regions received less adequate care compared with other regions. Supply-related factors (drugs availability, distance/transport, health insurance ownership, rural residence) were associated with adequacy of care. The lack of female autonomy, widowed/divorced women, age and parity were associated with less adequate care. Care patterns were distinctively associated with the quality of health care support (skilled and female attendant) instead of with the number of visits made to the facility. Across regions and within rural settings, disparities exist, often compounded by supply-related factors.ConclusionsEfforts to address skilled workforce shortages, greater accountability for quality and equity, improving women motivation for care seeking and active participation are important for maternity care in Ghana.Electronic Supplementary MaterialThe online version of this article (doi:10.1186/s12913-016-1654-5) contains supplementary material, which is available to authorized users.

Retracted: The Value‐relevance of Equity Accounted Carrying Amounts and Disclosed Fair Values of Listed Associates

Equity accounting is a controversial accounting treatment. Although fair value measurement represents a potential alternative measurement base, information content may be lost under a pure fair value measurement approach. This study investigates the value‐relevance of equity accounted carrying amounts and disclosed fair values of listed associates, using a sample of the largest firms listed in South Africa, Australia and the UK. The main finding is that the alternative measurement bases are incrementally value‐relevant during the sample period of 31 December 2005 to 31 December 2011, implying that equity investors do not blindly accept either measurement base. Rather, investors include their own assessment of the intrinsic value of an entity's listed associates in their valuations.

Creating the Business Case for Achieving Health Equity.

Health care organizations have increasingly acknowledged the presence of health care disparities across race/ethnicity and socioeconomic status, but significantly fewer have made health equity for diverse patients a true priority. Lack of financial incentives is a major barrier to achieving health equity. To create a business case for equity, governmental and private payors can: 1) Require health care organizations to report clinical performance data stratified by race, ethnicity, and socioeconomic status. 2) Incentivize preventive care and primary care. Implement more aggressive shared savings plans, update physician relative value unit fee schedules, and encourage partnerships across clinical and non-clinical sectors. 3) Incentivize the reduction of health disparities with equity accountability measures in payment programs. 4) Align equity accountability measures across public and private payors. 5) Assist safety-net organizations. Provide adequate Medicaid reimbursement, risk-adjust clinical performance scores for sociodemographic characteristics of patients, provide support for quality improvement efforts, and calibrate cuts to Disproportionate Share Hospital (DSH) payments to the pace of health insurance expansion. 6) Conduct demonstration projects to test payment and delivery system reform interventions to reduce disparities. Commitment to social justice is essential to achieve health equity, but insufficient without a strong business case that makes interventions financially feasible.

НОРМАТИВНАЯ РЕГЛАМЕНТАЦИЯ МЕТОДИЧЕСКОГО ОБЕСПЕЧЕНИЯ УЧЕТА СОБСТВЕННОГО КАПИТАЛА НА ПРЕДПРИЯТИЯХ С ИНОСТРАННЫМИ ИНВЕСТИЦИЯМИ

Purpose is to specify on the accounting methodic of transactions with equity and based on it’s ways of their effektive and resultative improvement in the enterprises with foreign investments. Methodology: In the context of such a scientific research the economic substance and methodical support of the equity accounting in enterprises with foreign investment comparison methods were used: research, synthesis, system approach, mathematical methods, formalization, induction, deduction and other methods. The scientific article is compiled on the basis of research results the main provisions of the legal regulation of these processes, the analysis of the literature of scientists and experts, that investigate this perspective, and other official sources from the Internet. Results. This article is devoted to the economic essence and peculiarities of the accounting equity in the context of accounts, the methodology for formation of equity, recognition procedures and the equity in enterprises with foreign investment. Also, the methodical approach of equity accounting in enterprises with foreign investment was analyzed by the author. As a result of research and detailed testing of transactions with equity for enterprises with foreign investments formed the results and recommendations: - specification of accounting method the transactions of equity based on the scientific research of it’s economic nature and characteristics of accounts, capital formation techniques, procedures, recognition and measurement of equity on the basis of comparative characteristics the international experience; - in order to display the mapping technique in the accounts of transactions with equity, is considered the procedure of object accounting in the program 1C and SAP, which based on a comparison of it’s benchmarks; - proposed the model of comparative accounting automation through the use of accounting software 1C and SAP, confirmed the need for a gradual transition to international standards. To display the results of the differentiation procedures and methodical support of transactions with equity in enterprises with foreign investment is made a comparative analysis of accounts and reporting on these operations. Practical implications. The Search of more effective methods and the order of formation of own capital and its registration with the position of its normative regulation are perspective issue, during the reformation and standardization of all spheres of public life in Ukraine. In terms of legislative changes, the important is the realization of priority tasks and describe the scientific basis of the rules of accounting methodology equity, as well as its formation. Using a systematic approach, while displaying the accounts of transactions with their own capital and their accounts promotes their detailed characterization in the context of changes in the structural components of the equity for enterprises with foreign investments. Therefore, the use in practice formed proposals for enterprises with foreign investments contribute to the improvement of the accounting for transactions with equity in the context of methodological for their support, and also, can be used as based scientific materials on foreign investment enterprises, because these subject is the main identifiers promises more effective economy, in general, and resultation of each subject, separately. Value/originality. These results confirm the need for a gradual transition to European standards of accounting operations with its own capital and can be used as a theoretical basis for the unification and harmonization of the main provisions of international requirements in the future. To do this, you need their promises more effective methodological support, which should be studied in the framework of this scientific article, particularly suggested: - improve the procedure for accounting of transactions with equity in enterprises with foreign investment through studies, from a scientific point of view, methods, and procedures for their methodological support; - the model of comparative accounting automation based on the use of accounting software 1C and SAP. It should be noted that, since the enterprise with foreign investments are foreign investments, the investigative keep records, usually on the basis of IAS and IFRS, respectively software must be built on this basis, for this purpose more than an acceptable use of the SAP program. At this point, the majority of enterprises with foreign investment in Ukraine is carried out with a gradual transition to the SAP 1C, there are economically justified.

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Įmonių nuosavo kapitalo ir jo apskaitos ypatumai

From the fundamental accounting equation becomes the evidence that equity is one of the most significant indicator of enterprise state. So the process of enterprise equity formation that should be not only legally based but also economically reasoned is definitely relevant aspect in accounting. Both the reform of public sector and complex and hard to prognosticate conditions in private sector also laws of free market that promote to respond operative to external factors require complex and comprehensive equity accounting researches.
 The aim of this article – compare peculiarities of different enterprise equity accounting (closed share holding company, state enterprise, state budget institution).
 Tasks that have been set to reach the aim: 1) scrutinize requirements for share holding company, state enterprise, state budget institution of their equity accounting; 2) compare their peculiarities of equity accounting: structure of equity, similarities and differences between 3rd class of a chart of accounts.
 After the research becomes the evidence that equity accounting of closed share holding company is strictly regulated by laws and standards while equity accounting of state enterprise and budget institution is almost unregulated. The most specific structure of equity is in state budget institution. Whereas the structure of equity in state enterprise is closer to the structure of equity in closed share holding company. Consequently in a number of cases requirements for state enterprise of their equity accounting might become closer to requirements for closed share holding company, for example, requirements for shareholders equity, formation of reserves. In this way the stringency of regulation for closed share holding company would be taken to regulate state enterprise equity accounting. However, closed share hold company has specificities that might not be adjusted in state enterprise, for example, requirements for share premium, reserve for own shares because the activity of state enterprise is not intended to reach for profit. After the comparison of the 3rd class of a chart of accounts becomes the evidence that closed share holding company and state enterprise have many similarities. However, closed share holding company has far and away more sub accounts to register equity and changes of equity.

Valuation of liabilities in hybrid pension plans

Contemporary pension plans are often hybrid pension plans, a mixture of defined benefit and defined contribution plans. In this article, we model a continuum of stylized hybrid pension plans in a run-off pension fund and value these pension liabilities taking account of both equity and interest rate risk. We achieve analytic valuation formulae and examine how the liability evolves over time. Comparative statistics are carried out to show the relevance of some key parameters in defining the hybrid pension plans, particularly the indicator of hybridity and the equity allocation in the pension fund's investment policy.

Speaking of Privilege: Family Therapy Educators’ Journeys toward Awareness and Compassionate Action

This study explores how family therapy educators from privileged social locations understand issues of privilege and the process by which they integrate their personal and professional journeys to create and model equity in family therapy training and professional development. These educators developed awareness about issues of privilege and oppression and owned their privilege. Increased awareness involved personal struggles with guilt and managing internalized voices of prejudice that are constantly reinforced in society. These educators adopted a stance of action and accountability for equity. We hypothesize that the process leading to owning one's privilege involves the ability to be compassionate for others' suffering and one's own limitations.

Valuation of Liabilities in Hybrid Pension Plans

In this paper we derive an analytic valuation formula for a generalized form of liabilities in hybrid pension plans taking account of both equity and interest rate risk. Comparative statistics are carried out to show the relevance of some key parameters in defining the hybrid pension plans, particularly the indicator of hybridity and the equity allocation in the pension fund’s investment policy. We find that both the level of hybridity and the equity allocation of the pension fund impact the value of hybrid plan liabilities. This should affect the negotiation between employers and employees on total labor compensation.

Effects of Corporate Tax Rate Cuts on Firm Investment and Valuation: A Micro Simulation Approach

This paper investigates the changes in firm value triggered by corporate tax rate changes for which firms have balances on deferred tax allowances and deferred tax assets. The effects on both investment to fixed/current assets are well taken care of with embedded production functions and firm investment decisions change over time through the accumulated process of retained earnings on the simulated future path. The study is based on micro-simulations, and the data covers the period 2000 to 2008. We note the tax loss carry-forward allowances and net changes in the deferred tax assets affect the equity account and our simulation results demonstrate that the changes in corporate tax rates can enhance market value of equity in most cases, while there are some cases in which the effects are neutral or even detrimental for firm values. With our result both firm financial managers and government regulators must watch very closely the current balance statement status of firm.

The Rights Project: How Rights Education Transformed a Classroom

Current research has suggested many possible benefits of rights education, including increased empathy, tolerance and respect (Alderson, 1999; Allan & I’Anson, 2004; Covell, 2005; Decoene & De Cock, 1996). In this case study of a rights education project - the Rights Project - we demonstrate some ways rights discourse served to transform the understanding of a group of four year-olds in a preschool. Rather than contributing to the maintenance of a hierarchical, rules regulated classroom, rights education transformed the classroom into a new learning environment based on equity, inter-dependence and group accountability. This article focuses specifically on children’s discussions around, and practical use of, two articles stated in the United Nations Convention on the Rights of the Child: Article 13, ‘the right to be listened to’ and Article 31, ‘the right to play’ (United Nations General Assembly, 1989). As children explored the meaning of each right, their understanding of social being transformed and their recognition of the relationship between rights and responsibilities seemed to shift their perspectives from ‘me’ to ‘we’.

An Investigation of Earnings Management Through Investments In Associated Companies: An Australian Perspective

Until recently, Australian companies have been precluded from adopting equity accounting for investments in associated companies in the consolidated accounts. As reported profits were based on the cost method (albeit with note disclosures utilizing equity accounting procedures), this paper investigates the incentives of Australian firms to manage earnings in a reporting environment which facilitated opportunism. It is argued that the higher the ex ante probability of managing accounting earnings from investments in associates, parties will contract to remove those incentives by restricting the accepted set of accounting procedures to equity accounting. Opportunism is more likely to be observed for firms for which it is inefficient to specify ex ante the method of accounting for associates. The ability to act opportunistically is defined as the degree of influence which an investor exercises over the financial and/or operating policies of its investees. The results are confirmatory. For firms which have a lower ex ante probability of managing earnings, use of the cost method significantly improves consolidated return on investment compared with returns calculated using the equity method. Firms which are more likely to choose the equity method for efficiency reasons have an insignificant difference between cost and equity returns.

Valuation of Liabilities in Hybrid Pension Plans

In this paper we derive an analytic valuation formula for a generalized form of liabilities in hybrid pension plans taking account of both equity and interest rate risk. Comparative statistics are carried out to show the relevance of some key parameters in defining the hybrid pension plans, particularly the indicator of hybridity and the equity allocation in the pension fund's investment policy. We find that both the level of hybridity and the equity allocation of the pension fund impact the value of hybrid plan liabilities. This should affect the negotiation between employers and employees on total labor compensation.

Effects of Tax Rate Cut on Firm Investment and Valuation: A Micro Simulation Approach

This paper investigates the changes in firm value triggered by hypothetical corporate tax rate changes in which effects on both investment to fixed assets and current assets are well taken care of. With this framework we assess the effects of government tax rate cuts. Firm investment decisions change over time through the accumulated process of retained earnings. The study is based on micro foundation simulations of all the firms listed in Japan, excluding financial firms. Our data covers the period 2000 to 2008. In order to explore the effects on valuation by corporate tax rate changes we pay particular attention to the tax loss carry-forward allowances as well as net changes in the deferred tax liabilities, which appear on the equity account and the contra account of the deferred tax assets in financial statements. Our results demonstrate that the changes in corporate tax rates can enhance market value of firm equity in most cases, while there are some cases in which the effects are neutral or even detrimental for firm values. We interpret that these different results are caused by mixed effects of current provisions that allow firms to carry their tax loss forward and the net balance of tax deferred accounts. We claim that past and future profitability or non-profitability of firms are crucial to hit the exact threshold points at which firms experience value appreciation or not, on which both firm financial managers and government regulators must watch closely.

The Value Relevance of Earnings and Book Value Using an Option-Style Equity Valuation Model: Evidence from Korea

The purpose of this paper is to investigate the value relevance of earnings and book value in security prices from 1982 to 2001 in Korean stock market. The study examines whether the accounting earnings and book value have a nonlinear relationship to equity value by using an option-style model of equity. The study uses an option-style model of equity value to test the hypothesis that earnings and book value have a nonlinear relationship to equity value by examining firms listed in the Korean stock market (7,928 firm-year observations). To this end, the paper performs analyses for all samples and across subsamples divided into loss firms and profit firms, and observes changes in relationships over the past twenty years. This paper reports three sets of findings. First, the value-relevance of accounting earnings differs between loss firms and profit firms. Second, Korean firms differently acknowledge accounting earnings and book value for equity valuation. Third, an option-style valuation model can explain the nonlinear relationship between equity value and accounting earnings/book value. The important contribution of the study is to show the nonlinear relationship between equity value and book value in the Korean stock market. And the empirical results of the paper reinforces the adoption of a new equity valuation model that explicitly recognized the option that firms have to adapt their resources to the alternative uses available to them.