National Accounting Practices Research Articles

Turning less into more: Measuring real GDP growth in the green transition

Proponents of degrowth query the compatibility of ecological sustainability with economic growth and a capitalist system predicated on the ongoing expansion of economic output. This article deploys insights from constructivist political economy and recent literature on the politics of technocratic expertise to build upon and challenge this analysis. Using UK national accounting practices as a case study, it explores how current approaches to GDP measurement both facilitate and obstruct the treatment of reduced material throughput as increased economic output, of “less” as “more”. Rather than advancing an alternative to GDP growth, it highlights how tensions between the pursuit of growth and the pursuit of sustainability might be reduced using conceptual resources drawn from within established approaches to national accounting and GDP measurement. Although far from a panacea, changes in technocratic practices of national accounting could reduce economic and political barriers to green transition policies.

Features and challenges of national and international practices in representing operations with government grants in enterprise accounting

Manuscript is dedicated to the examination of key aspects related to the representation of government grant operations in accounting records. It aims to identify critical issues, analyze previously proposed methodologies, and provide recommendations for enhancing the accounting system to consolidate information regarding government grants and earmarked receipts within the accounting framework. The purpose of the paper is to analyze existing methodologies for recording government grant transactions, identify their strengths and weaknesses, and provide recommendations for improving the process of recording government grant transactions in accounting records. The research findings reveal key aspects of the scholarly discourse on the issue of registering government grant transactions in accounting records. The paper proposes an enhanced accounting model for representing government grant operations and earmarked receipts. The manuscript provides a comparative perspective on accounting practices for recording government assistance in Ukraine and several foreign countries. The author summarizes that there are significant issues in the domestic methodology for registering government grant transactions. The paper presents approaches to improving the accounting tools for government grants and earmarked receipts, aiming to enhance the quality of financial information. The author suggests categorizing transactions into two groups: government grant transactions and earmarked receipts transactions. Researching international practices in recording government grant transactions allowed for identifying commonalities and differences with national accounting practices.

Global environmental accounting and the remaking of the economy-environment boundary

This paper analyses the rise of environmental accounting in global governance via a case study of the UN System of Environmental-Economic Accounting. We draw on recent literature that highlights the boundary between ‘economy’ and ‘non-economy’ as an important site of politics, and which establishes the key role of accounting practices in constructing that boundary. We show how the conceptual framework underpinning emergent global environmental accounting standards attempts to distinguish economy from non-economy in a way consistent with mainstream macroeconomic thought. However, and in contrast to existing critical accounts, we demonstrate that attempts to draw a clear boundary between the ‘economic’ and ‘non-economic’ aspects of the environment sometimes end up de-stabilizing that very distinction, establishing heterogenous notions of economic value that are increasingly inconsistent with standard national accounting practices.

A practical model to implementing IFRS in the national accounting system: The case of Azerbaijan

The purpose of this article is to develop a methodological approach to substantiating the effective consolidation model of national accounting standards (NAS) with International Financial Reporting Standards (IFRS) for Azerbaijan. Using the questionnaire method, the advantages, and obstructions of IFRS implementation in Azerbaijan have been assessed, depending on the practicing models of consolidation of NAS and IFRS. Using fuzzy sets made it possible to determine the levels of development of advantages and obstructions associated with the introduction of IFRS into national accounting practice in Azerbaijan. We determined the most effective model of consolidation of NAS and IFRS for the enterprises of Azerbaijan. The effectiveness of implementing models for the consolidation of NAS and IFRS has been assessed to provide a balance between advantages and destructive factors in the implementation of IFRS.

UNDERSTANDING BANK MONEY THROUGH A QUANTUM MACROECONOMIC THEORY OF CREDIT. SOME THEORETICAL CONSIDERATIONS ON MICROCREDIT

ABSTRACT Reframing risk assessments of microcredit, this paper expands on quantum macroeconomic conceptions of money, output and income to argue that production is endogenously financed. Building on the works of Schmitt, Cencini and Rossi, the conceptual logic of quantum monetary theory traces the origins of a (micro)firm’s finances to its consequent production. Production is then a self-sustaining system, and (micro)firms should not, in fact, dependent on worthiness decision made by banks for credit and funding. With especial focus on microfinance (and microcredit specifically), the socio-economic system requires restructuring to accommodate understandings of production as endogenous and microcredit as sustainable. This includes reforming national accounting practices to accurately represent possibilities of insolvency, themselves much reduced by the recognition of production as endogenous. Keywords quantum-economics; theory of money emissions; economic system; financial intermediation; microcredit

Federal Accounting Standard 5/2019 – Inventories: An analysis of conceptual changes

Subject. This article investigates the conceptual developments in the Russian theory and practice of accounting for inventories due to the adoption of the new standard. Objectives. The article identifies and substantiates critical changes in the conceptual framework, classifications, law enforcement practice during the integration of Federal Accounting Standard 5/2019 – Inventories into the accounting theory and practice of the Russian companies. Methods. The study is based on a comparative analysis. Results. The new standard was found to not only supersede the one approved in 2001, demonstrate a greater compliance with the identical standard. However, it does have some distinctions, which are very specific by nature. The new standard enriches the conceptual framework, adds new items of expenditures, both current and future, which can be attributed to the initial cost of inventories due to the profitable nature of inventories as assets. I point out eight different changes that seem conceptual and constituting the novelty of the study. Conclusions and Relevance. The application of Federal Accounting Standard 5/2019 – Inventories will induce the revision of corporate accounting policies, setting up new internal standards of business entities. What does make them beneficial is the convergence of the national accounting practice and IFRS.

ПОДАННЯ ТА РОЗКРИТТЯ ІНФОРМАЦІЇ ПРО ФІНАНСОВІ АКТИВИ У ФІНАНСОВІЙ ЗВІТНОСТІ

In accordance with international financial reporting standards and national regulations, financial statements and notes to the financial statements are the primary source of information from which investors and lenders can make informed management decisions. In order to increase the reliability of the informations that are provided by the entities in the Statement of financial position and Statement of comprehensive income and Statement of profit and loss, the article considers and investigates the provisions of international financial reporting standards and the requirements of the national regulatory framework regarding the presentation and disclosure of accounting and analytical information on financial assets in financial reporting. It has been analyzed and proved that there are certain contradictions in the definition of the range of investors and lenders who rely on the financial statements to make reasonable management decisions on investments that they have provided or intend to provide to business entities. The article provides a comparative analysis of international financial reporting standards’ requirements and national requirements regarding the structure and content of information on financial assets, which is submitted in the financial statements. It is determined that the structure and content of information about financial assets disclosed in the notes, respectively, in the domestic legal framework does not meet the general requirements for the preparation of financial reporting forms and notes in accordance with the requirements of International Financial Reporting Standards, and therefore misleads stakeholders who prepare notes to the financial statements and makes such information less useful to them. It is defined that national requirements essentially differ from principles which are applied in the international practice that, as consequence, essentially influences quality of formation of the information on financial assets and its disclosure in the financial statements, in notes. It is certain that international and national accounting practices encounter significant inconsistencies in the presentation of financial assets in the financial statements and in the notes, which contain explanations of significant accounting policies and other clarifications.

Особенности аудиторской проверки бухгалтерской (финансовой) отчетности организаций, досрочно применяющих в бухгалтерском учете балансовый метод учета временных разниц

Th e article is devoted to the topical practical issues of accounting and auditing arising in connection with the amendments to the Federal accounting standard 18/02 «Accounting of calculations of profi t tax» by the Ministry of Finance of Russia No. 236h from 20.11.2018, the essence of which is that in national accounting practices is being promoted balance method of determining the amount of the current income tax, deferred tax assets and liabilities. The article deals with the principal provisions of the balance sheet method of accounting for diff erences between accounting and tax financial results, the use of which will be mandatory from 2020, while in 2019 it is possible to early voluntary application of the balance sheet method by reporting organizations.

Prospects for establishing environmental satellite accounts in a developing country: The case of Rwanda

In this paper, we discuss the beginning of Rwanda's current work on natural capital accounts. Many developing countries began similar work on environmental satellite accounts in the 1990s and early 2000s, only to abandon them a few years later when the initial political interest waned. The question arises, therefore, as to whether renewed interest in these accounts has the potential to have a longer-lasting impact on national accounting practices. In Rwanda's case, the decision was to begin satellite accounting work by focusing on resources where key economic trade-offs between different uses had already begun to be identified by policymakers, and where the gathering of economic statistics had already been improved as a result. It seems likely that this approach could lead to more durable satellite accounts, and that a similar approach would be feasible in many other countries.

Uluslararası Finansal Raporlama Standartlarının KOBİ’ler Açısından Değerlendirilmesi – Türkiye Uygulaması

Differences between national accounting practices and international practices make it difficult to compare financial information, create barriers to fundraising processes, and cause difficulties in buying and selling international businesses and mergers. International Financial Reporting Standards (IFRS) have been issued by the International Accounting Standards Board (IASB) in order to eliminate such problems, to harmonize different accounting practices and to apply the same international accounting standards. In parallel, Turkish Financial Reporting Standards (TFRS) have been adopted in Turkey by the Turkish Accounting Standards Board (TASB). SMEs have an indispensable prescription for the world economy. Accounting information provided by SMEs should also have the same qualification. SME TFRSs have been published in 2009 for SMEs and SME TFRSs for SMEs in Turkey, which are compelled to evaluate their financial statements due to the complicated and difficult understanding of IFRS / TFRS. IFRS for SMEs (a) is designed to meet the financial reporting needs of businesses that do not have an obligation to provide public accountability and (b) publish general purpose financial statements for external users. In this framework, IFRS for SMEs represents an accounting standard for small and medium-sized businesses that can be used worldwide. For this reason, the study aims to evaluate the adoption and implementation of IFRS for SMEs worldwide.

Problem aspects of transformation in financial reporting of business entities in Ukraine

In many countries International Financial Reporting Standards (IFRS) have become part of the domestic law or common practice. Ukraine has also taken the first steps to the use of IFRS taking into account its national peculiarities. However, problems occur in the adaptation of international standards, which need to be solved. The proposed article is devoted to the research of specific problems arising during the implementation of IFRS in Ukraine. The author substantiates the expediency of implementing International Financial Reporting Standards in Ukraine, studies the prospects of using international standards in the national accounting practices and defines the principle of transformation as a priority. It determines the stages of IFRS implementation in Ukraine and the problems that arise on each of these stages. As a result, the study highlights the shortcomings of the national accounting system’s reform and ways of optimizing the process of IFRS implementation in Ukraine.

Extending the Classification of European Countries by their IFRS Practices: A Research Note

This paper expands the IFRS accounting systems’ classification proposed by Nobes [(2011). IFRS practices and the persistence of accounting system classification. Abacus, 47(3), 267–283] to a broader set of European countries. The results suggest a classification distinguishing between four groups of European countries, and add to the evidence, reported by Kvaal and Nobes [(2010). International differences in IFRS policy choice. Accounting and Business Research, 40(2), 173–187] and Nobes (2011)., that pre-IFRS accounting differences influence the options adopted by firms. This study contributes to the literature suggesting that the widespread adoption of IFRS has not eliminated the differences between national accounting practices and that accounting systems classification did not lose its relevance.

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Three Centuries of Macro-Economic Statistics

This paper describes the history of the national accounts starting from the incidental estimates by Petty, King and Davenant in the seventeenth century. The period 1930-1950 was a revolution in terms of the roles and uses of the national accounts, e.g. the discovery of input-output analysis, purchasing power parities and macro-econometric modelling and the Keynesian revolution in economic thinking. Most of these new uses also reinforced each other. These uses were also closely linked to the economic circumstances: the economic crisis of the thirties, the Second World War and the need for recovery afterwards stimulated an active role of the government. In 1947, for the first time a report on national accounting concepts was published by the UN. Some years later, the first official guidelines were published. Since then, national accounting theory and practice have increasingly been dominated by these guidelines. The period since the Second World War can thus best be labelled as 'the era of the international guidelines'. Many innovations in national accounting have been made since the Second World War. After gaining wider acceptance and maturity, a great deal of them has been included in the guidelines and some others have not. Since the Second World War, the national accounts statistics published by countries all over the world have changed drastically in scope, concepts, frequency and detail. These developments in national accounts practice do not have a straightforward relationship to the international guidelines. Due to the European Unification, the supply of national accounts in Europe has been improved dramatically.

Accounting Regulation and Regulation of Accounting: Theories and the Brazilian Case of Convergence to IFRS

The convergence process of national accounting practices into international standards requires significant changes on accounting regulation. Brazil has many examples of that: the creation of the Brazilian Accounting Standards Committee (CPC), the issuance of the Federal Law 11.638/07, the January 14th Letter to the Market issued by the Brazilian Securities Exchange Commission (CVM), the translation of the Framework for the Preparation and Presentation of Financial Statements (issued by the International Accounting Standards Board), translated by CPC and approved by CVM. It is expected that accountants and auditors are working hard to understand and to get familiar with new standards to adopt and audit them on their firms and/or clients. However, as important as to adopt and audit the adoption of International Financial Reporting Standards (IFRS), it is important to understand changes on accounting regulation. Although, there are not been discussed the incentives and consequences of this accounting regulation tsunami in the Latin-American context. This theory-based paper examines the Brazilian IFRS convergence experience in an interdisciplinary perspective. All five theories of regulation examined (Public Interest, Capture, Interests Group, Reale's, and Habermas') are concurrent among them but are helpful in examining IFRS convergence phenomenon; in some cases they provide complementary explanations.

Climate change: scenarios and integrated modelling

This paper examines the genealogy of long-term studies in economics and its mobilisation in climate change research. Long-term studies differ from short-term forecasting and planning not only in their length of foresight but also by taking account of strategic and policy objectives. These strategic considerations are not within the scope of longue durée historians, nor are they integrated into econometrics or national accounting practices of forecasting. Only planning and prospective analysis include this dimension. The method of scenarios is then at the core of long-term studies and prospective approaches. The conception and use of scenarios is reviewed through various national and international studies since the 1970s – DATAR, OCDE, CPB and, finally, the IPCC scenarios report – as well as their implementation in integrated assessment models (IMAGE, for example).

Contabilidad nacional medioambiental para productores de petróleo. Estimaciones para México y Venezuela (1901–1985)

Environmental accounting literature reminds us that prosperity can be ephemeral if it is built on depletion of natural resources. Traditional national accounting practice ignores the loss of natural resources. According to standard environmental accounting, this produces exaggerated income, encourages unsustainable levels of consumption and is misleading when assessing the economic prospects of resource extracting countries. While the historiography of oil-extracting countries departs from entirely different concepts and methods, it contains plenty of arguments that resemble those of the environmental accountants. Nonetheless the arguments in the historiography lack quantitative support for the most part. This article connects these previously disparate literatures and explores the resulting synergies. Doing so, it contributes to the surprisingly small amount of comparative historical studies of the oil industries and the economic histories of Venezuela and Mexico, but overall, this study is an examination of the tractability and usefulness of environmental accounting as a tool of economic analysis over the long run.

The Concept of Income in a General Equilibrium

This paper derives a concept of aggregate income for a competitive economy in general equilibrium consisting of heterogeneous infinitely lived people and relates it to current and future consumption possibilities. An important characteristic of our measure of income, which we call Real Income, is that deflation is carried out using a consumption deflator rather than any price index of output. We suggest that it may be inappropriate to regard capital gains income. We also present a coherent treatment of effects of changes to terms of trade on Real Income and explain implications of this for resourceexporting economies. Hicks (1939) defined income the maximum amount a man can spend and still be well off at end of week at Since then, there has been a succession of attempts to apply this definition. The problem is, Hicks acknowledged, that correct interpretation of as well off' is by no means clear. Weitzman (1976) and Asheim (1997) suggest that income is equal to level of consumption which could be sustained indefinitely out of capitalized value of current income and equate this to being well off at end of week at beginning. Eisner (1988) argues specifically that in a total incomes system, effects arising from asset price changes and conventionally regarded capital gains should be included with income. Here, building on earlier work by Sefton and Weale (1996), Asheim and Weitzman (2001), and Pemberton and Ulph (2001), we provide a comprehensive account of implications of idea that as well off' should be understood to mean that present discounted value of current and future utility should be unchanged over interval considered. We work in context of a general equilibrium, taking prices established in general equilibrium given. We first look at income from production side, showing that in an economy where prices and interest rates satisfy an intertemporal efficiency condition, income along an equilibrium path can be interpreted a weighted average of value of current and future consumption bundle plus a term adjusting for changes in nominal price level. Converting prices to real prices by deflating by Divisia consumption price index removes need for this adjustment. These results are suggestive. First, they offer a way of defining income of a household entirely in terms of its consumption possibilities. Second, they indicate that, to calculate income, deflation is best carried out using a price index of consumption; this is a substantial divergence from current national accounting practice. Third, because we have assumed constant returns, there is a trivial aggregation result that aggregate income is equal to sum of incomes from individual sectors.

National accounting and capital

National Accounting and Capital presents definitive solutions to current problems in national accounting practice. Professor Hartwick deals expertly with problems in accounting natural capital, financial capital and skills capital and communicates his solutions in specially designed national accounting tables or matrices.

Impression management: the case of inter-country financial graphs

Previous literature on presentational impression management has not generally addressed the issue of whether certain countries are more likely to indulge in impression management than others. Two important forms of impression management (selectivity and measurement distortion) are investigated in the financial graphs of the corporate annual reports of 300 companies in Australia, France, Germany, the Netherlands, the U.K., and the U.S. In particular, we examine (1) whether graphs of key performance variables (KPVs) (such as sales, earnings, earnings per share, and dividends per share) are more likely to be included when performance has increased rather than decreased, and (2) whether measurement distortion of KPV graphs are likely to give a more rather than a less favorable portrayal of company performance. In addition, we test the ability of the micro/macro classification of national accounting practices to explain differential national graphical reporting patterns. Some evidence is found of selectivity in graph usage (particularly in the U.S. and Australia, and for the earnings variable) and of measurement distortion (particularly in the U.S. and the Netherlands). The micro/macro classification does not adequately explain country differences, although there is some evidence that impression management is greater in those countries with strong capital markets.