Current Expenses Research Articles

Matching Level And Investors’ Heterogeneous Beliefs

This study investigated the relation between matching level and investors’ heterogeneous beliefs using listed firm (KOSPI) data in Korea. This study is based on prior research that reported that the higher the matching level, the less the noise included in accounting earnings and the higher the earnings quality. Karpoff (1986), Bamber (1987), Ajinkya, Atiase, & Gift (1991) and Dormeier (2011) explain that if there are different interpretations among investors regarding intrinsic value of a company, as a result, the trading volume can represent investors’ heterogeneous beliefs. Whereas the previous studies on matching level analyzed what kind of impact matching level improvement has on earnings quality, accumulated market adjusted return, foreign ownership, future earnings response coefficient (FERC) and bond credit rating. However, these studies have problems in measuring the matching level. So this study suggested additional proxy on matching level in addition to the proxy used in previous studies. Specifically, we analyzed the matching level model of Paek’s (2011b) by using the Prais-Winsten estimation method and then used the calculated explanatory power (Adj.R2) as a proxy for the additional matching level. To empirically analyze hypothesis of this study, we used firm-year observation from 4,094 firms listed on Korean Stock Exchange over the period from 2003 to 2011. We found that matching level regression coefficient consistently showed significantly negative values for each measurement. Moreover, we analyzed additionally by measuring the calculated regression coefficient (β2) of current expenses as matching level response coefficient after analyzing Dichev and Tang’s (2008) matching level measuring model by Prais-Winsten estimation method. It showed that regression coefficient of the current expenses and trading volume have negative correlation. This is consistent with this study, and it can be analyzed that as matching level improves, investors’ heterogeneous beliefs decrease. According to microeconomics theory of Mas-Colell, Whinston, and Green (1995), trading volume is explained to affect price changes. However, accounting and related studies analyze the information effect by using price change only. In this sense, this study is meaningful in that it conducted an analysis on the information effect of matching level through trading volume. In addition, this study contributes to understand the microscopic structure of the capital market.

Towards better environmental performance of wastewater sludge treatment using endpoint approach in LCA methodology.

The aim of this study is to use the life cycle assessment method to measure the environmental performance of the sludge incineration process in a wastewater treatment plant and to propose an alternative that can reduce the environmental impact. To show the damages caused by the treatment processes, the study aimed to use an endpoint approach in evaluating impacts on human health, ecosystem quality, and resources due to the processes. A case study was taken at Bissell Point Wastewater Treatment Plant in Saint Louis, Missouri, U.S. The plant-specific data along with literature data from technical publications were used to build an inventory, and then analyzed the environmental burdens from sludge handling unit in the year 2011. The impact assessment method chosen was ReCipe 2008. The existing scenario (dewatering-multiple hearth incineration-ash to landfill) was evaluated and three alternative scenarios (fluid bed incineration and anaerobic digestion with and without land application) with energy recovery from heat or biogas were proposed and analyzed to find the one with the least environmental impact. The existing scenario shows that the most significant impacts are related to depletion in resources and damage to human health. These impacts mainly came from the operation phase (electricity and fuel consumption and emissions related to combustion). Alternatives showed better performance than the existing scenario. Using ReCipe endpoint methodology, and among the three alternatives tested, the anaerobic digestion had the best overall environmental performance. It is recommended to convert to fluid bed incineration if the concerns were more about human health or to anaerobic digestion if the concerns were more about depletion in resources. The endpoint approach may simplify the outcomes of this study as follows: if the plant is converted to fluid bed incineration, it could prevent an average of 43.2 DALYs in human life, save 0.059 species in the area from extinction, and make a 62% reduction in the plant’s current expenses needed by future generations to extract resources per year. At the same time it may prevent 36.1 DALYs in humans, save 0.157 species, and make a 101% reduction in current expenses on resources per year, if converting to anaerobic digestion.

Meeting demand: A multi-method approach to optimizing hospital language interpreter staffing

Objective: The objective of this paper is to highlight a study on optimizing the full-time equivalent (FTE) for Spanish and Mandarin interpreters at Christiana Care Health System. In this study, there were multiple challenges that needed to be addressed, and a multi-method approach was taken.Methods: These methods include: (1) time-motion study to quantify interpreter workflow and variability of duration of time needed for each task; (2) an integer program to optimize the number of interpreters needed per hour based on historical demand patterns for interpreter services; (3) Discrete-Event Simulation (DES) to examine the use of agency interpreters in order to meet demand; (4) cost modelling to convert FTEs and the use of agency interpreters into overall costs to the hospital; and (5) sensitivity analysis to evaluate alternative number of interpreter FTEs and their corresponding costs to the hospital.Results: Overall cost to the hospital is predicted to decrease with additional FTE interpreters, up to a threshold level above which the cost will start to increase. Through this innovative methodology used in this paper, we predict that hiring 3.5 more FTEs for Spanish interpreters will result in 9.07% of cost savings, and predict that hiring one FTE for Mandarin interpreters will result in 25.87% in cost savings compared to the current expense of providing Mandarin language interpretation.Conclusions: Contrary to intuition, increasing number of FTEs results in cost savings. Besides the financial benefit, hospitals will also be able to ensure the quality of health services that Limited English Proficiency (LEP) patients and families receive.

The Matching Characteristics Between Revenues And Expenses For Listed Firms In The ASE

The Matching Characteristics between Revenues and Expenses for Listed Firms in the ASE Tareq Z. Mashoka Abstract The paper aims to examine the matching process for expenses and its items in different periods and over time with associated revenues. The sample includes listed firms in the ASE. The results show that expenses in periods (t-1), (t) and (t+1) are associated with current revenues which add distortion to the matching process. Results also show that this distortion in matching is caused by certain expense items from past and future periods. Moreover, the results show that matching between current expenses and associated revenues has become worse over time. Keywords : matching; revenues; expenses.

MODELING STEADY DEVELOPMENT OF RURAL TERRITORIES IN VIEW OF CLIMATE CHANGE IN GEOINFORMATION SYSTEMS

The article highlights necessity of analysis and forecast of stability of rural territories development interrelated with development of agriculture, and also with monitoring the basic indicators of a state of ecology, the analysis of risky situations of land tenure and agricultural wildlife management. The validity of using the term “ecological economic load” is discussed. Five conditions for providing steady development of rural territories are as follows: increase of an index of human development; preservation of a surrounding environment; positive dynamics of investments into objects of social sphere; growth of current expenses for nature protection actions; steady development of all industrial sphere. For the analysis, monitoring and forecasting of rural territories development one could use a model of steady development and analysis of risky situations in agroindustrial systems, developed by the authors on the basis of the theory of constant bookkeeping, marginal analysis and concept of life cycle. On the ascending branch of the curve there are fixed eight stages of development of the organization from the beginning of functioning to the accelerated economic growth, and on the descending ‒ are as many risky situations: from loss of the growth acceleration up to bankruptcy. This model makes it possible to investigate influence of fluctuations of the basic weather parameters and various abnormal natural phenomena, soil qualitiy and organizational-technology factors on the results of activity of the agricultural organizations. Research of risks and threats to steady development of agrarian manufacture in conditions of climate change is illustrated by the analysis of influence of fluctuations of quantity of atmospheric precipitation and daily average temperatures of air on productivity of spring wheat in experiments by Research Institute of the Southeast agriculture, as well as dependence of stability of manufacture on natural fertility ground on the basis of data from “Solianskoe” experimental agroindustrial facilities.The use of geoinformation systems (GIS) is shown at the analysis of stability of development of agricultural production. The basic (prototype) model of monitoring and all-round estimation of a state and level of development of economy of agroindustrial complex of territories of the Russian Federation has been presented.

THE ROLE OF AMORTIZATIONAL POLICY IN ACHIEVING THE ACCOUNTING GOALS

Introduction. The article analyzes the current state and general tendencies of amortization policy formation of enterprises. It is determined that the current depreciation policy doesn’t satisfy the accounting purposes. Depreciation deductions are made by the accounting service as part of the general accounting policy of the enterprise. Their main purpose is adjusting the amount of current expenses in order to reduce the taxable profit. Methods. The data basis of financial accounting documentation of different business field and size enterprises in Ukraine was used to provide the informative basis of empirical research studies. The study presents the research results and highlights the perspectives of deprecation policy of the enterprise. The data source on general tendencies of creation and use of enterprise amortization fund in Ukraine was the information portal of State Statistic Service of Ukraine Research methodology is based on theoretical insights into the problem and scientific instrumentation that contained the questionnaire, comparative analysis of deprecation policy of the enterprise and applying the deprecation charge in innovative industrial renewal. Results. It is proved that in order to form a depreciation policy, it is necessary to involve specialists not only in accounting but also in engineering services, since depreciation funds should be a significant source of investment in the renewal of non-current assets, along with the profit of the enterprise. In addition, the management of the technical service must manage the terms of use of non-current assets and control their qualitative composition. The main task of amortization policy is increasing investment activity and accelerated renewal of fixed assets remains unfulfilled. Discussion. In connection with this requires a more detailed study of the problems of the formation and implementation of depreciation policy, the effectiveness of which depends not only on the economic, material, and technical state of individual enterprises, but also the welfare of the state as a whole. To provide such changes is necessary to take into account the basic requirements for accounting : comparability, accuracy and objectivity, clarity and availability, timeliness, efficiency and rationality. It will help to provide the management apparatus, relevant services and specialists with the necessary reliable data on business processes and financial condition of the enterprise.

Measuring Impartial Preference for Biodiversity

Biodiversity undergoes unprecedented rates of erosion despite the important services it provides. This is considered evidence that biodiversity is undervalued. Biodiversity valuation is accordingly a prominent issue in the literature. Economic valuations are, however, largely criticized. Numerous alternatives have been introduced. Most of them involve participatory protocols aimed at producing high-quality results. Being time-consuming and expensive, it is difficult to implement and reproduce them at a large scale. We produce an easily reproducible, inexpensive survey methodology to measure impartial preference for biodiversity. We implement it in Switzerland through a mail-based survey. Our result is that biodiversity should be ranked after retirement schemes and public transportation, but before relations with foreign countries, order and security, and culture and leisure in the expanses of the State. Current expenses therefore substantially underestimate the value that Swiss people grant to biodiversity. Our new method is a viable alternative to standard economic valuation. Given the impartiality achieved, at least in the Swiss political context our estimate can be used by decision makers to assess the legitimacy of conservation programs or to gauge public support. At a philosophical level, our measure is relevant for public policies because it captures the stances that people take when they participate in public decisions.

Impulsywne oszczędności osób młodych – wyniki badania eksperymentalnego

The article presents analysis of priming effect on distribution of income among impulsive consumption, short-term savings and long-term pension savings declared by young adults. Students of economics and management (N=212; 152 women; mean age=21.33 M [0.931]) were asked to split hypothetical income of PLN 1.000 among the four objectives, retirement savings among them. An excerpt from newspaper article noting that pensions in Poland in 2060 were expected to be very low, had been presented to experimental group (N=96) prior to decision task. Differences in distribution of amounts between experimental and control group were analysed. Current expenses for participants’ pleasure as well as their close ones were cut in the experimental group and average amount declared as pension savings increased from PLN 80.69 (control group) to PLN 211.10. However, savings to current bank account remained unchanged. Age, gender, employment experience and the way participants received income (either earned or won/found) did not moderate distributions. Logistic regression analysis revealed that 2.4-fold increase of likelihood of saving amount declarations above the average (PLN 139.75) was caused by appearance of persuasive information only. Circumstances of decision-making suggested that in the analysed case, priming effect led to impulsive rather than rational saving.

Designing and operationalising a meaningful healthcare analytics strategy

As healthcare continues to experience cost challenges, the industry is faced with the need to more aggressively pursue advanced expense reduction strategies, standardised and redesigned care methodologies, reimbursement models and, ultimately, population health. To execute this, the industry as a whole must begin to apply meaning to the vast amounts of data generated by healthcare providers by advancing methods to normalise and standardise this data from the disparate information systems found in the provider setting. Once this is accomplished providers can deploy a meaningful analytics strategy continuum that builds upon current expense reduction practices. Advanced analytics to allow more strategic management of supply expense should then be enhanced with clinical and other patient-related data to drive sophisticated and appropriate care standardisation and redesign efforts. This analytics strategy continuum will allow healthcare to move towards the more widespread application of Big Data and drive population health goals.

Does Revenue-Expense Matching Relate To Going-Concern Audit Opinion Conditional On Firm’s Financial Distress?

This paper investigates how firms manage the revenue-expense relationship in the presence of a going-concern audit opinion (GCO). Using Korean data, we find that firms with GCOs both delay and accelerate recognition of current expenses for current revenues. We also find that firms in severe financial distress that receive GCOs exhibit conservative accounting, whereas GCO firms in relatively less financial trouble adopt aggressive accounting. Overall, our results imply that firms’ matching extent and behavior provide useful information regarding financial reporting and can explain the earnings management behavior of firms with GCOs.

A second life for mobile phone batteries in light emitting diode solar home systems

E-waste is certainly increasing to become a global issue. Fast evolution of mobile electronic devices leads to their premature replacement for always newer, faster, and nicer design and therefore may be a source of environmental pollution and contributes to global warming. Fortunately, due to the properties of the lithium ion (Li-ion) battery that powers them, there is in average 3 years of life left for the battery when the device is recycled or no longer in use after 2 years. This wastage can be valued by giving to the batteries a second life as energy storage for lighting. In fact, it can be a real opportunity for access to electricity in remote rural areas of developing countries for low cost and quality lighting. We present that used mobile phone batteries associated with a solar panel and a light emitting diode lamp can be a good replacement for candles or kerosene lamps that generate pollution, are hazardous, and only give poor lighting. Such a replacement can be done for much lower cost than current expenses, better quality of light, and contributes to poverty alleviation and job creation. This reduces wastage in developed countries and overcomes the challenges of cost and durability in small off-grid photovoltaic systems in non-electrified rural areas of developing countries. The creation of social incentive can have a real effect on the reduction of e-waste.

Ключевые проблемы оптимизации системы бюджетного планирования в сфере науки и оценка предлагаемых мер

The article demonstrates that in the period between 2014, and 2016, the amount of grant investment in citizen science has decreased from 437.3 billion Rubles to 285.8 billion Rubles. Considering the level of domestic import dependency and the fall of the Russian currency, there has been nearly a doubling in the decrease in the actual financing of science in the past three years. The execution of the Russian President’s Order dated 7th May, 2012, № 597 suggests bringing the salary of scientists to 200% from the average salary in the region by 2018. However, already by 2014, the level of salaries in academic organizations of the Federal Agency of scientific organizations was only at 75% from the current expenses. Analysed are the key issues with distributing the state budget in the sector of generating scientific knowledge and the possible solutions to increase its efficiency. There are reviewed measures, suggested between 2014–2016, for optimizing the budget planning in the sphere of science. A conclusion is made about the complete discrepancy of suggested approaches to solving the identified problems.

Political Business Cycle in the Czech Republic: Case of Municipalities

The study analyses expenditures of all municipalities of the Czech Republic over the period 2003-2013. It aims to examine whether changes in municipal spending get affected by the electoral cycle. The analysis has proven that expenditures of municipalities of the Czech Republic are influenced by the political cycle. However, the political business cycle has at the level of municipalities (compared to the macroeconomic level) its peculiarities. These arise mainly from limited options of municipal politicians to use economic instruments to win electoral votes in elections. To receive electoral votes, municipal politicians use mainly public investments and projects that are at the level of municipalities so apparent that they may influence voters in their electoral decision-making. Prior to elections, expenditures on investments significantly increase for all municipal size groups. For municipal size groups of over 50,000 residents, however, they are (per capita) higher compared to smaller municipal size groups. This may be explained by the fact that these municipalities have higher disposable resources (higher per capita own budgetary revenues, higher potential to acquire resources to co-finance municipal projects and broader portfolio of debt financing). Expenditures on transfers do not significantly change prior to municipal elections. We interpret this finding in a way that politicians prefer such investment projects that are visible. Transfers are used to pay for certain current expenses for which municipalities may (in accordance with the established rules) apply through grants.

Italian Ordinary Statute Regions and Derivatives

Regions are first-level local administrations in Italy. Since 2003, regions have extensively used over-the-counter (OTC) derivatives. Since the use of these derivatives is not clearly regulated, derivatives have been employed to hedge outstanding debt and its costs, but there is evidence that derivatives have also been used to pay current expenses. This study empirically investigates the dynamics the debt of Italian Ordinary Statute Regions and the impact of OTC derivatives during the 2007-2012 period, and the results show that derivatives – as measured by negative market value – have a positive and statistically significant relationship with debt.

To the Problem on the Methodology of Pension System Institutionalization in Russia

The need to form the methodology of institutionalization of the pension system in Russia is reasoned by a number of factors related to the defects of the distribution model’s Institute, the most important of which are unacceptably low level of pension amounts, high insurance rates, independence of the accrued pension’s sizes from the level of wages, the economically active population’s reducing, and a growing number of pension recipients among immigrants from the former Soviet republics. Moreover, the payment of current pension expenses was carried out from current receipts, which testified the financial collapse of the system. As a result, the distributional model of the national pension system is almost discredited both financial and socio-political points of view. The article analyzes different points of view of domestic researchers on the reforming problems of domestic institutions in the pension system, substantiates the benefits of cumulative distribution system’s Institute in comparison with the distributional system and describes trends and controversies. From a critical position the implications of legislative acts’ implementation in the sphere of pension provision are analyzed. All this has led to several important conclusions, including the problems’ identification of insurance model implementation, the pension system’s specific benefits’ revealing, which are manifested in certain negative social and economic consequences that results to the formation of a methodological platform of institutionalization of the pension system and allow to provide real evolutionary rather than fragmentary and situational nature of its institutional model’s reforming. This article is intended for researchers, teachers and students studying the problems of formation and development of the domestic pension system, its research methods within the discipline “Economics of public sector (government) services”, “Pension and social security” and for specialists of regional authorities, dealing with the problems of development of the pension system, social protection and social security of the population. DOI: 10.5901/mjss.2015.v6n6s2p483

International Audit Standard No. 240 and Its Impact on the Practical Procedures of Auditors in Detection the Manipulation of Financial Statements

This study aims to explore the role of International Audit Standard No.240 on the auditor’s procedures in detecting manipulation and fraud of financial Statements, the descriptive approach was used in conducting this study, through viewing the related literature in order to indentify the practices that lead to manipulation. And by identifying the auditor’s responsibilities according to the International Audit Standard No. 240. The results showed that firms may commit manipulation in several ways, such as recording the current expenses as capital expenses, to reduce costs and increase profits which may lead managers to ask for rewards. Therefore, the auditor must make greater efforts to the following:- Focusing on financial events that have different accounting treatments, such as record maintenance expenses, at the fixed asset account. The purpose of this action is to reduce costs and increase profits, which may lead to request, a reward by managers.- Comparing manager’s Salaries with Past year.- Comparing financial ratios of the company with its counterparts in the market.- Send support certificates for suppliers to make sure their account balances, in order to ensure the registration of all Purchases futures in inventory account.

Analisis Pengaruh Beban Pajak Kini, Beban Pajak Tangguhan, Dan Basis Akrual Terhadap Manajemen Laba

The purpose of this study is to analyze the effect of current tax, deferred tax expense, and accrual basis towards earnings management. The object of this study are manufacturing companies in consumer goods sector that are listed in Bursa Efek Indonesia for period 2011-2013.Selection of the sample is determined based on purposive sampling method. The sample used in the study are 19 manufacturing companies in consumer goods sector that are listed in Bursa Efek Indonesia for period 2011-2013, presenting and publishing financial statements on BEI’s official site in Indonesian Rupiah, that have been audited by an independent auditor per 31 December, contains data related to current tax expense and deferred tax expense, and have scaled earning change value in range 0 – 0,06 and -0,09 – 0. The data used in this study are secondary data, the annual financial statements audited by an independent auditor. Data analysis method used is logistic regression.The results of this study are (1) current tax expense has significant effect towards earnings management, (2) deferred tax expense does not have significant effect towards earnings management, (3) accrual basis does not have significant effect towards earnings management, (4) current tax expense, deferred tax expense, and accrual basis simultaneously have significant effect towards earnings management.
 Keywords: accrual basis, current tax expense, deferred tax expense, earnings management.

Examining Working Methods on Reducing Expenses in Islamic Azad Universities: Perspective of Faculty Members of Isfahan (Khorasgan) Branch

Islamic Azad universities are autonomous and non-profit institutions where almost all the expenses are provided through students` tuitions. In recent years in accordance with extreme quantitative development of institutions of higher education, reduction in the number of university student candidates, paltry increase in tuitions, and considerable increase in construction and current expenses, management of expenses in Azad universities has turned into a vital concern. The present study aims to examine working methods for decreasing the expenses of the universities, investigating the effect of five factors including targeting activities, organizing manpower, mechanizing systems, controlling, observing, and downsizing the university, on reducing expenses in Islamic Azad Universities. The study is conducted in descriptive survey method and the population of the study was all 320 faculty members of Islamic Azad university of Isfahan (Khorasgan) in March, 2014. 175 people were chosen by Morgan Table through available random sampling as the sample of the study. The instruments were questionnaires designed by the researcher and the data was analyzed through Uni-variate t Test, Friedman Test, and Analysis Variance through spss-19 software. The result revealed that all five factors in the study have significant effects on reducing expenses in the universities and manpower had the highest effect whereas, controlling and observing had the least effect. DOI: 10.5901/mjss.2015.v6n3s1p445

Deflating profitability

Gross profit scaled by book value of total assets predicts the cross section of average returns. Novy-Marx (2013) concludes that it outperforms other measures of profitability such as bottom line net income, cash flows, and dividends. One potential explanation for the measure׳s predictive ability is that its numerator (gross profit) is a cleaner measure of economic profitability. An alternative explanation lies in the measure׳s deflator. We find that net income equals gross profit in predictive power when they have consistent deflators. Deflating profit by the book value of total assets results in a variable that is the product of profitability and the ratio of the market value of equity to the book value of total assets, which is priced. We then construct an alternative measure of profitability, operating profitability, which better matches current expenses with current revenue. This measure exhibits a far stronger link with expected returns than either net income or gross profit. It predicts returns as far as ten years ahead, seemingly inconsistent with irrational pricing explanations.

Recycling mobile phone batteries for lighting

The fast evolution of technology and over production of mobile electronic devices leads to their short usage period and therefore may be a source of environmental pollution and contributes to global warming. Fortunately, due to the properties of the lithium ion (Li-ion) battery that powers these mobile devices, there is a lot of life left for the battery when the device is sent to recycle. This e-waste can be valued by giving to the batteries a second life as energy storage for solar lighting. In fact, it can be a real opportunity for access to electricity in remote rural areas of developing countries for low cost and quality lighting. We show that the usage of recycled mobile phone batteries associated with a solar panel and a light emitting diode (LED) lamp can be a good replacement for candles and kerosene lamps that are hazardous and only give poor lighting quality. Such a replacement can be done for a much lower cost than current expenses, better quality of light and contributes to poverty alleviation and jobs creation. This overcomes the challenges of cost and durability in small off-grid photovoltaic systems.