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Este texto lo que busca mostrar el impacto del Impuesto a las Ventas, sobre la utilidad del negocio, o sobre la rentabilidad de las empresas, para facilitar el análisis se partirá de varios supuestos, donde el Costo de ventas es el 50% del valor de las ventas y las compras son el 90% del Costo de ventas y el resto de compras, queda en los inventarios finales del periodo contable. Inicialmente se mostrará la elaboración del Estados de Resultados de una empresa Comercial, bajo normas internacionales de información financiera, por el método de la función del gasto, en el cual se visualiza el costo de ventas y su ultimo renglón que es el término “Ganancia antes de impuesto”. Después de dicho renglón se adicionará el impuesto a las ventas generado. y el impuesto a las ventas descontable en las compras, para mostrar el efecto del impuesto a las ventas pagado, sobre la ganancia de las organizaciones.

The primary basis of accounting for inventories is cost, which is the price paid or consideration given to acquire an asset. The valuation of inventory is not a minor issue, because the accounting method used to create a valuation has a direct bearing on the amount of expense charged to the cost of goods sold in an accounting period and therefore on the amount of income earned.

The purpose of this chapter is to trace the evolution of the concept of measurement in financial reporting and to address the question of whether measurement in financial reporting is a process of “measurement” or whether it constitutes something else, which should not be called measurement, but rather characterized a practice which assigns numbers to elements in financial statements as opposed to the process of measuring. The chapter begins with an examination of the concepts of measurement put forth in recent years by the United States Financial Accounting Standards Board and the International Accounting Standards Board, followed by a summary of the general theory of measurement in the natural sciences, and finally a review of the arguments raised by accounting theorists such as Edwards and Bell (1961), Chambers (1966), and Sterling (1970) with respect to the measurement of business income. We agree with Sterling’s argument that business income should be “measured” by the difference between net equity (i.e., assets − liabilities) at two points in time, adjusted for investments and disinvestments by owners, and also the argument that the difference in equity should be determined by the change in exit prices of net assets at the beginning and the end of the accounting period. However, we are less convinced by his argument that the determination of exit prices constitutes a “measurement” process. This leads to the principle argument of this chapter, which is that “measurement” in financial accounting may not constitute a measurement process at all.

This study aims to analyze the implementation of contract revenue recognition based on PSAK 34. The problem that is often faced by companies that are particularly engaged in the field of construction services in the recognition of income is the method of revenue recognition what should be used or applied, because there are differences in recognition between the one method with others. Especially if a project is done is more than a year or the so-called Long-term project. In addition, the presentation of financial statements of income recognition in each accounting period must be reported in accordance with generally accepted Accounting Standards (PSAK No. 34 concerning Construction Contracts). There is only one method used or applied that is the percentage completion method. The percentage method recognizes income with two approaches, based on physical progress and cost-to-cost. PT X as a construction service company uses the percentage of completion method with a physical progress approach (Physical progress) in the recognition of his opinion for both long-term contract and short-term contract. The results of this study conclude that the accounting treatment of the application of revenue recognition of construction services by using the percentage of completion method with physical progress approach on PT X is in conformity with the accounting standards set in PSAK No. 34. However, when compared to revenue recognition using the percentage of completion method with a cost-to-cost approach the firm can recognize the revenue and expenses more to illustrate or show a more proportional calculation because it corresponds to the costs incurred or poured out. Keywords: revenue recognition, expense recognition, PSAK no. 34

The article contributes to the current discussion on whether and how to introduce corporate criminal responsibility to Germany. The article focuses on the interrelation between possible designs of a future corporate criminal law and the explanatory model of the "early" Niklas Luhmann (1964) on the existence and functionality of "useful illegality" (“brauchbare Illegalitat”) in organisations. The author presents the alternatives for penal legislature, discusses the original concept of Luhmann and debates his recent "rediscovery" and popularisation in the context of publicly debated corporate misconduct. The key question is whether, for reasons of efficiency, the law should allow companies leeway for useful deviant behaviour. As a rule, severe violations of state law are neither desirable nor useful. However, the “uselessness” depends on the “accounting period”. Rather, the author takes the view that law itself endeavours as far as possible to systematically implement socially beneficial behaviour in the binary code "right-wrong".

Here, we argue that the commercial for-profit insurance companies act more like a memory-less system in a way that the premiums paid by the policy holders during one accounting period will be of no avail to them during subsequent periods, although the excess premiums earned in the previous periods may rest in the companies’ retained earnings. Moreover, commercial insurances are subject to many over-head costs, taxations and uncertainties which are not present in the realm of social insurances. As the costs and uncertainties are greatly reduced and the profits earned in the previous periods are available to meet present and future expenditures, social insurances entail a lower amount of premium for the policy holders than its conventional commercial counterpart. The objective of this study is to quantify the extent of profit made by the commercial insurance companies born out of the premium after meeting up operating expenditures and claim settlements and how this profit evolves over time after being invested at the risk-free rate. To us, this is the amount of money that would otherwise rest in a trust fund available for future claim settlement if there were equivalent social insurance schemes in place. To do so, we collect annual country-level data of premium collection, claim settlement and operating expenditure incurred for 04 (four) OECD countries from OECD insurance database (OECD in, OECD Insurance Database. https://stats.oecd.org/Index.aspx?DatasetCode=INSIND . Accessed 27 Apr 2020, 2020a) and extrapolate the profit trends into the future using appropriate ARIMA/ARIMA–GARCH framework. As anticipated, the profit shows an explicit upward trend after making a V-shaped recovery right after the global financial crisis of 2008.

The aggregate trade in the market in a community must be accounted for per period of time. As such, the market consists of “flows.” Specifically, the flow of quantity traded is determined after interactions between the two flows of demand schedule and supply schedule; the former slopes downward and the latter upward for various reasons. In the period, a particular unit out of a stock quantity, fixed or not, can change hands zero to multiple times. No household would demand more of a “good” at a higher price. The household surely supplies more working hours at a higher wage rate. Then, the so-called “fixed supply” and “backward-bending curves” are counterfactual: they cannot be so in the given accounting period. Such a saying that the demand for liquidity slopes downward because the interest rate is the opportunity cost is also erroneous: demand must be defined in terms of benefit before being compared to its cost, or “price,” yet to be determined in the market. This essay aims to reevaluate, in hopes of correcting notable misconceptions in microeconomics, how demand and supply schedules should be defined in the product, the “production factor” and the asset markets.

The study was aimed at the justification opportunity and expediency of calculating mathematically verified estimates of the level of socio-economic development of the territories of the region. The research methodology is based on a set of theories of economic growth, regional development, and overcoming depressive syndrome. Methods of economic and mathematical (in particular, statistical analysis) are used to obtain numerical estimates of the state of the territories of the region. First of all, such assessments are necessary for the development of real plans for the long-term development of territories that are currently depressed. The proposed methodology for assessing levels of depression is based on the calculation of the function of depression, allowing to take into account both the current position of the territory and the rate of change of key parameters of its development. The classification of depressed territories, in accordance with the proposed methodology, is implemented on the basis of statistical data describing the most important socio-economic indicators of the territory. The methodology makes it possible to select key indicators and a significant accounting period, depending on the research purpose. It is also possible to introduce expertly determined weighting factors into the function both to take into account state and speed components, and to more correctly characterize the contribution of previous periods to the current position of the territory. Obtaining quantitative estimates to determine the concrete volumes of support required by the territory for leveling the depressive state is the most important result of using the depressive function.

The changes that have occurred in the business landscape due to COVID-19 present marketologists and entrepreneurs with new problems. The forced trend of a sharp increase in online interaction with consumers should be used. Such global shifts give rise to innovative tools for evaluating commercial results and transform old techniques to correspond to the new reality of the market. This is the basic condition for a business to sustain in any industry. This paper focuses on developing a theoretical description of the multi-stage interaction with the customer base. In order to solve this problem, a mathematical model was developed at the base of which is a digital information interaction, starting with identifying the target audience and finishing with a completed commercial transaction. Unlike the classical sales funnel, the algorithms presented allow a multi-dimensional conversion funnel to be used for more than just evaluating the results of business for the accounting period. Thanks to a stream of arguments for the model in real time, it is becoming possible to optimize the commercial process by moving to the concept of leading economic indicators.

Financial statements are financial records of an entity or company in an accounting period. Financial statements are used to measure the performance of small businesses and as a basis for making business decisions. This study aims to examine the side of the internal influence of small businesses, namely perceptions of usability and perceptions of ease of use, and test the effect of business measures in moderating the effect of independent variables on dependent variables. This research is survey research. This study uses the Structural Equation Model (SEM) analysis method. Hypothesis testing uses the SmartPLS 3.0 program. The results of the study indicate that perceived usefulness has a significant positive effect on the presentation of financial statements, business measures reinforce the influence of perceived usefulness in the presentation of financial statements. While the perception of ease of use does not have a significant effect on the presentation of financial statements, and business size is not able to strengthen the influence of perceptions of ease of use on the presentation of financial statements. The suggestion for the next researcher is to add independent variables.Keywords: Perception of Use; Ease of Use; Presentation of Financial Statements

Buildings, machinery, equipment, furniture, computers, parking lots, cars, and trucksare examples of tangible assets that will not last indefinitely, but more than one year.During each accounting period, a portion of the cost of these assets is being usedup. Each company, due its establishment, procures tangible assets as the base forits operation. If you are responsible person (CEO) in the production company, it isnot unusual if you find out that some of your production assets are still in operation,but they were completely depreciated. By this way, main accounting principles forreporting on tangible assets (cost and revenue matching principle) are not respected.The way the CEO solve this problem can have big impact on costing price and profitor loss at the end of the year. Problem is that useful life of asset was not properlyassessed or revised. As result, carrying amount and income in financial statementsare not correct. Solving these problems is very important for creating consolidationstatements and representing financial statements due to International Financial ReportingStandards, especially if large audit firms audit financial statements. The aimof this work is to help understanding theoretical and practical issues on tangible assets,especially depreciation, trough analyzing available literature, scientific workswritten world abroad and practical research made by author.

Revenue comprises turnover from transportation of passenger and cargo and this provision of other services, e.g engineering and maintenance,leasing and package holidaysThe treatment of passenger and cargo in external financial statements would generally appear to be consistent in industry,as a result this guideline cover both aspects of revenue without differentiating unless reference is made.The basic principal that revenue should be recognised when transportation or carriage provided is well established.This concept is the same whether revenue passenger and cargo.This treatment reflect the application of the accruals concept(accruals basis).The airlines in effect act as collectors on value added tax from sold of passenger ticket or air way bill and other service amounting to 10 %(ten percent) from face value.Treatment of accounting policy as follows;1.Income arisingfrom sales made where the sale coupon has been processed, but the flight is yet to take place and recorded in the accounting period as unearned revenue ,included in current liabilities2.If flight coupon has been flight to destination but have been not recorded in the account of ticket sold called unrecorded included in current asset,for value added tax purposes unrecorded can be changed to account receivables.3.Scheduled and charterrevenue from passengers and recorded in the accounting periode as income included in statement of income.4.All forms of cargo revenue derived from air freight and recorded in the accounting period as income included in statement of income

Capital Expenditure is budget expenditure used to obtain or add value to assets that benefit more than one accounting period. Infrastructure development in an area is reflected in the allocation of effective capital expenditure from an area. The purpose of this researce is to determine the factors that influence capital expenditure in the province of Bali. The object of this study is the report on the realization of the regional expenditure income budget APBD in the District/City in the Province of Bali in the Fiscal Year 2013-2017. The data analysis technique used is multiple linear regression analysis. The results of this study indicate that regional original income (PAD) has a significant positive effect, balancing funds have no effect and the surplus financing budget (SILPA) effect on capital expenditure negatively in the province of Bali.

Dalam Standar Akuntansi Keuangan mengungkapkan bahwa pendapatan dapat diartikan sebagai arus kas masuk bruto dari manfaat ekonomis yang timbul dari aktivitas normal perusahaan selama satu periode akuntansi, bila arus masuk itu mengakibatkan kenaikan ekuitas yang tidak berasal dari kontribusi penanaman modal. Sedangkan beban dapat diartikan sebagai pengorbanan ekonomis untuk menghasilkan sesuatu dalam kegiatan perekonomian. PT. Wahana Tata Riau mengelompokkan beban dalam dua klasifikasi beban yakni beban proyek dan beban usaha. Biaya proyek adalah kelompok biaya yang berhubungan langsung dengan proyek. Disini terjadi kesalahan dalam pembebanan atau pencatatan biaya-biaya yang timbul dari pekerjaan proyek seperti biaya bahan baku, upah tenaga kerja dan overhead. Perusahaan mencatat pengeluaran bahan baku dengan mendebet biaya kontrak dan mengkreditkan bahan baku, sedangkan untuk upah tenaga kerja, perusahaan mendebet biaya kontrak dan mengkreditkan upah tenaga kerja demikian juga dengan biaya overhead.

To determine the exact cost of production, the compony must take into account precisely the elements of the production cost. Elements of the production cost on the research is raw material cost, direct labor cost, and manufacture overhead cost. Break event point analysis relate to sale, fixed cost, and variable cost. All of these cost are costs associated with the production process of Crude Palm Oil. Make, this research count the cost of production and break event point Crude Palm Oil PT. Sandabi Indah Lestari (PT. SIL) from 2009-2014.This research uses design research of descriptive analysis and quantitaive analysis. Cost of production CPO to use method of full costing because used data represent and have passed accounting period. Cost of production and break event point of the research analysed in 2 form that is on the basis of rupiah and on the basis unit. Result of research indicate that sales revenue of CPO more than cost of production and break event point in rupiah and also in unit. Matter this means that company have obtained profit of production.

The search for optimal capital structure of a company is an important task of the strategic financial management. The paper given is a natural continuation of a series of author’s publications on the study of problems connected with building an optimal capital structure of a company (Ageev and Filonova, 2017), (Filonova ES, 2017). The practical part of the research conducted deals with the leaders of the Russian telecommunication market «Rostelecom», «MTS», «MegaFon», «Vimpel-Communications» and there were some attempts to build an optimal capital structure in the strategic group of competitors, based on the materials of accounting (financial) reports of these companies as at 2014 and 2015. The present paper contains the analysis of the actual capital structure of the companies mentioned above based on studying their balance sheets, made as at the end of 2016, and gives the results of the search for optimal capital structure based on the data in the new accounting period.

The activity of insurance and operation of insurance companies is very important in the context of development of financial organizations that operate in the territory of many countries, including the Republic of Serbia. A report that is of crucial importance for insurance companies in the context of an adequate cash flow management is a cash flow statement. Bearing in mind the specificity of the insurance industry, as well as the risks associated with it, cash flow is the basic focus of financial management. For insurance companies, it presents an overview of cash flows that occurred during the previous accounting period. The aim of the paper is to show the importance of efficient cash flow management in insurance companies from the aspect of their planning, and to this effect, the paper provides the simulation of the internal report on cash flows that is done monthly for domestic insurance companies in the function of efficient liquidity management of the insurance company.

Most analyses of inequality and tax and benefit reforms are based on measures of individuals’ circumstances at a point in time. But strong age-profiles in earnings, among other characteristics that the tax and benefit system conditions upon, combined with individuals’ ability to transfer resources across time suggests that measuring circumstances over longer horizons may lead to a very different picture. In this article, we consider how our impression of inequality and the tax and benefit system changes when the horizon under consideration is extended. We show that inequality is lower, redistribution less extensive, and benefit receipt far more widespread from a longer-run perspective. The choice of accounting period can also lead to a very different assessment of the distributional impact of policy reforms. Our results show the importance of policymakers explicitly considering what it is they are trying to achieve through redistribution: the alleviation of short-run hardship or the reduction of lifetime inequality. While there may be good reasons to pursue both objectives, the group of people affected and the appropriate policy response will differ depending on which is prioritized.

Income inequality and the achievement test score gap between high- and low-income children increased dramatically in the United States beginning in the 1970s. This article investigates the demographic (family income, mother’s education, family size, two-parent family structure, and age of mother at birth) underpinnings of the growing income-based gap in schooling using data from the Panel Study of Income Dynamics. Across 31 cohorts, we find that increases in the income gap between high- and low-income children account for approximately three-quarters of the increasing gap in completed schooling, one-half of the gap in college attendance, and one-fifth of the gap in college graduation. We find no consistent evidence of increases in the estimated associations between parental income and children’s completed schooling. Increasing gaps in the two-parent family structures of high- and low-income families accounted for relatively little of the schooling gap because our estimates of the (regression-adjusted) associations between family structure and schooling were surprisingly small for much of our accounting period. On the other hand, increasing gaps in mother’s age at the time of birth accounts for a substantial portion of the increasing schooling gap: mother’s age is consistently predictive of children’s completed schooling, and the maternal age gap for children born into low- and high-income families increased considerably over the period.

The author of this paper presents a statistical analysis of data on realized profits of companies in the tourist sector, whose shares are listed on the Zagreb Stock Exchange and used for active trading. Data on the realized profit for the companies in accounting period 2010 - 2015 is correlated with the prices of shares. Based on the above obtained results about the direction and strength of this correlation the author concludes about the extent to which the market takes into account profit of the companies as a relevant indicator for investments. This information can be extremely significant because, on the one hand, it provides information about the functionality of the market as a comprehensive socio-economic mechanism that anticipates all the available information based on which the prices of the shares are created as a monetary expression of the presumed value of companies. On the other hand, this information tells us about the expectations of active market participants about the future development of the tourism sector, which already accounts for almost 20% of the Croatian GDP. In addition, the author examines what other explanations could be used for the part of variance which is not explained with the correlation between profit and price of shares.

Studies report different findings concerning the climate benefits of bioenergy, in part due to varying scope and use of different approaches to define spatial and temporal system boundaries. We quantify carbon balances for bioenergy systems that use biomass from forests managed with long rotations, employing different approaches and boundary conditions. Two approaches to represent landscapes and quantify their carbon balances - expanding vs. constant spatial boundaries - are compared. We show that for a conceptual forest landscape, constructed by combining a series of time-shifted forest stands, the two approaches sometimes yield different results. We argue that the approach that uses constant spatial boundaries is preferable because it captures all carbon flows in the landscape throughout the accounting period. The approach that uses expanding system boundaries fails to accurately describe the carbon fluxes in the landscape due to incomplete coverage of carbon flows and influence of the stand-level dynamics, which in turn arise from the way temporal system boundaries are defined on the stand level. Modelling of profit-driven forest management using location-specific forest data shows that the implications for carbon balance of management changes across the landscape ( which are partly neglected when expanding system boundaries are used) depend on many factors such as forest structure and forest owners' expectations of market development for bioenergy and other wood products. Assessments should not consider forest-based bioenergy in isolation but should ideally consider all forest products and how forest management planning as a whole is affected by bioenergy incentives - and how this in turn affects carbon balances in forest landscapes and forest product pools. Due to uncertainties, we modelled several alternative scenarios for forest products markets. We recommend that future work consider alternative scenarios for other critical factors, such as policy options and energy technology pathways.

Construction service companies have distinctive characteristics, where not all of the project work processes are completed in one accounting period, and the commencement of work cannot be ensured at the beginning of the year, depending on the contract of the agreed construction work contract. There are several methods that can be used by construction companies in recognizing their income, and we know that income is one of the components of profit formation. Revenue must be measured fairly and must be confirmed in accordance with revenue recognition and the principles of the Statement of Financial Accounting Standards. PT. Mina Fajar Abadi uses the basis of cash in recognizing her income, which is by recording income and expenses in the income statement when cash is received or paid, it is not in accordance with the Statement of Financial Accounting Standards on construction services. If the project is carried out the total revenue and contract expenses can be measured reliably, then the company should apply the percentage of completion method in recognizing its income, thus the income statement presented by the company will provide the right information for decision making for the company.

Australia is experiencing cataclysmic weather events largely due to rising atmospheric temperatures caused by greenhouse gas emissions – climate change. A consequence of droughts, floods, fires, tempests and family disasters is the sale or loss of valuable stud stock. In normal trading circumstances these animals would not be sold as trading stock. However the sale of pastoral properties can be beyond the will of the owners for a raft of reasons. Presently the receipts from the sale of ALL animals sold as part of a primary production business are considered to be income according to ordinary concepts by the Australia Taxation Office (ATO) and taxed at ordinary income tax rates. This paper considers the value of animals included in the sale of rural properties in Australia. It argues that the provisions of the Income Tax Assessment Act 1997 (ITAA 1997) are being misinterpreted by tax administrators and tax professionals. Sections 70-10, 995 ITAA 1997 provide that livestock are trading stock – a revenue item. However s 385-100 refers to breeding stock – a capital item. Many practitioners may be interpreting ss 70-10, 995 as applying to ALL livestock. Considering the sale ALL animals traded on the sale of a pastoral lease or farm as revenue denies vendors of concessions permitted under the capital gains tax provisions. This paper considers the income and capital gains tax implications on the sale of animals in conjunction with the sale of pastoral and farming properties in Australia. The distinction between classifying expenditure by an enterprise to be on items of a capital or a revenue nature has long been argued. Generally, in accounting terms, expenditure is considered to be of a capital nature if the benefit of the purchased asset is applied to more than one accounting period.

The main purpose of this study is to examine the factors that affect delays in the signing of audit reports in Turkey. The audit delay is measured as a function of the number of days that elapse from the accounting period until the date when the audit report is signed. This study utilizes a sample of 508 firms listed on the Borsa Istanbul in 2013. The findings indicate that the companies that report net income, that have standard audit opinion release their audited financial statements earlier. Variables such as auditor firm and leverage show no significant relationship with audit delay.

The System of Environmental-Economic Accounting for Water (SEEA-W) consists of an agreed international framework for organizing hydrological and economic information in a coherent and consistent manner. The methodology yields to the SEEA-W physical tables focusing on the quantitative assessment of the stocks and their changes in a river basin during the accounting period. For that purpose, the information on the abstraction and water discharge is linked with the environment water stocks, which assesses how current levels of abstraction and discharge affect such water stocks. This study presents the methodology and results to fill out the SEEAW tables for asset accounts on the Spanish Duero basin. Duero is a transboundary river between Spain and Portugal where 80% of its basin area (78,860km(2)) runs into the Spanish territory. The Spanish part is divided in five zones and 13 management systems. The methodology applied the three models used by the Spanish Water Authorities for the planning and allocation of water resources in Spain: 'SIMPA' model (rainfall-runoff model), 'ASTER' model (hydro-meteorological model related to snow processes) and 'SIMGES' model (water management simulation model). The required information was collected with the support from the Duero River basin Authority and the Spanish Ministry of Agriculture. Special care was paid to issues such as: inter-annual variability, the selection of spatial and temporal scale, seasonality, disaggregation of human abstractions into use's type, and transboundary agreements. The results highlighted some drawbacks in the SEEAW methodology for the Duero basin. However, the developed balances are a valuable tool to support the decisions of the Spanish Duero basin Authority on the management and allocation of water in the basin and in the transboundary area with Portugal. Finally, the paper outlines some recommendations for future work.

The study looks at the impact of three major regulatory changes that happened on the historic day of 2 July 2001, when badla was banned, rolling settlement replaced accounting period settlement for...

With the globalization and the division of labor among enterprises, the output of SMEs (small and medium-sized enterprises) has increased. At the same time, the cost of inventory and the inconsistency of the accounting period are testing the capital of SMEs. Especially in the context of the Internet, a lot of micro e-commerce companies emerge. This paper identifies that Internet supply chain finance maybe a targeted solution to the difficulty of SMEs' financing, under the background of Internet. Internet SCF has brought vigor to the financial market, which will eventually breaks the highly centralized financial system. To promote the Internet SCF, this paper provides a range of suggestions.

Commercial insurance system acts like a memoryless system in a way that the premiums paid by the policyholders in one accounting period will be of no avail to them during subsequent periods. Here, we argue that if the insurance scheme is implemented as a not-for-profit trust fund (social insurance) instead of a for-profit limited liability company (commercial insurance) then it will effectively and less expensively hedge against unforeseen losses. If the profit of the insurance company is retained instead of being distributed to the stockholders and there is no agency commission then after a certain number of years, all upcoming claims can be addressed from the interest income of the accumulated profit and the policyholders do not need to pay any premium afterwards. Here, we algebraically calculate the time period required to achieve such a perpetual insurance system as the policyholders after a certain period of time, do no longer need to pay any premium in order to get coverage from losses. In the next step, we empirically calculate the required time period to attain a perpetual zero premium insurance scheme for some 20 (twenty) general insurance companies incorporated in Bangladesh.

In this paper we examine two aspects of the temporary increase in the UK Annual Investment Allowance (“AIA”) maximum, allowance, raised from £200,000 to £1m for the calendar years 2019 and 2020 by UK Finance Act 2019 section 32 and Schedule 13. First we scrutinize the technical operation of the legislation as it affects taxpayers with accounting years that do not correspond exactly with the commencement or termination of the increase. We conclude that there is a potential timing trap for businesses whose accounting period begins during the temporary increase but extends beyond the termination on 31 December 2020. This pitfall can dramatically diminish the available allowance from the headline figure depending on the precise timing of the qualifying expenditure. Secondly, we look at the impact of the temporary increase on the cost of capital for a multinational company when there is the opportunity for profit shifting, comparing this to a UK firm with no such possibility. We show that increased AIA will bring down the cost of capital for UK firms that cannot profit shift to a level similar to that for firms that do migrate profits abroad. In contrast, we find that not only is the cost of capital already lower for firms with opportunities for profit shifting, but also AIA is likely to be less effective in reducing their cost of capital. This in turn suggests that the AIA will not be so successful in stimulating investment by firms that engage in profit shifting. At the same time, the more generous allowance is associated with a narrow tax base for all taxpayers, which would reduce revenue to the UK Exchequer without the intended investment stimulus for many UK firms.

The main objective of this paper is to investigate the quantitative impact of International Financial Reporting Standards (IFRS) on accounting components. IFRS 1 requires IFRS adopter firms to prepare comparative information under IFRS and under local GAAP, which is termed as IFRS-Local GAAP (e.g., IFRS-UK GAAP for the UK) reconciliation statement. This statement shows every accounting line item (in all financial statements) under two accounting systems for the same accounting period, which helps us to know the differences between local GAAP and IFRS. Analysing 1153 Australian listed firms’ reconciliation statements, this study documents that investment value is 35.38 percent higher in IFRS relating to investment value under local GAAP. Financial assets are shown 28.48 percent higher in IFRS relating to financial assets under local GAAP; goodwill is valued 22.60 percent higher in IFRS relating to goodwill value under local GAAP. On the other hand, retained earnings decrease by 23.3 percent under IFRS compared to retained earnings under local GAAP. More importantly, net income increases by 5.64 percent under IFRS compared to those under local GAAP. The findings of this study suggest that IFRS affects significantly accounting components which indicates the value relevance of IFRS. In addition, this study shows the importance of understanding the differences between local accounting standards and international accounting standards. This study will also be beneficial for investors, decision makers, preparers of financial statements, and other users of accounting information. More importantly, this study will be useful to those countries planning to adopt or in the process of adopting international accounting standards (e.g., Indonesia, Japan).

PT Jasa Raharja is a company who handles about social insurance, where at the end of each accounting period year, will make and report a financial statement. In company’s financial statement, revenue is an important component. One of the existing income of PT Jasa Raharja is insurance premium income. The purpose of the writer is to compare and to gain knowlegde whether company’s account treatment of insurance premium income already in accordance with the existing accounting standard, especially in recognition and measurement of insurance premium income. The accounting treatment of company’s insurance premium income must be controlled as to prevent misinformation in company’s financial statement.Keywords: accounting standard, insurance premium income

The year-end process consists of two options: temporary and permanent. The temporary year-end process performs two actions: first, it generates the next fiscal year, and then it transfers the balances of accounts from the closing year to the new fiscal year. When you select this option from the Closing menu, the system asks you to provide a profit and loss account from the chart of accounts (COA), which is used to transfer the difference of revenues and expenses.

Now-a-days environment has become a very crucial issue not only for personal life but also for business life and hence, environmental movement and environmental reporting practices by different organization throughout the world have gathered great momentum in recent year. Advancement and improvement of quality of environment is the major issue for their activities. Environmental accounting (EA) more specifically, Environmental MaThe purpose of this research is to find out information technology influences the application of accrual accounting. Accrual accounting is presented for operational reports (LO). LO presents an overview of economic resources that increase equity and its use which is managed by the central/regional government for government administration activities in one reporting period. So there is a cut-off to determine the income and expenses that occur in one accounting period. The concept of accruals is useful to assess the government's performance in managing State finances whose management and management are handled by the government itself. The unit of analysis in this study is the Muba-Indonesia Regional Government unit. The results show that information technology influences the application of accrual accounting significantly. Furthermore, it was found that the application of accrual accounting could change because there was survey information technology in FKMD Muba units.

Percentage of Completion Method help the company in the financial system of the company in one period may have more than one contract because this method shows the income statement as fair. Revenue recognition with the Percentage of Completion Method using a proper approach to matching concept (compare the costs and revenue appropriately) is the most appropriate method for long term contracts because it can describe the income statement in each period can be reported proportionately and fairly. For short term contracts, companies can use the method of revenue recognition based on the Completed Contract Method or the Percentage of Completion Method with the terms of the contract occurred less than or not more than one accounting period, because if more than one period and using the Completed Contract Method, it can cause report income that is not fair. Keep in mind that the Percentage of Completion Method has the disadvantage that if there is reduction or additional work in a contract, the percentage of work progress to be recalculated, and if there is a change estimated total cost, so the revenue recognized in the previous year must recalculated.

The article presents the research results of the efficiency and financial feasibility of the underground infrastructure construction assessment methods. The efficiency types, performance criteria, basic assessment principles for project efficiency throughout the accounting period are considered. The assessment algorithm of the project efficiency is worked out.

In article the indicators influencing sustainable development of the defensive entities on the basis of the analysis of financial results of their activities for data of annual accounting records with use of a method of the horizontal and vertical analysis are considered. The most important indicators of financial results of activities of JSC “Ryazan Radio Plant” and JSC “Tambov Plant Oktyabr” based on data of annual accounting records for 2015 were considered. Positive changes of the accounting period of JSC “Ryazan Radio Plant” are growth of revenue from sales for 28.11% and growth of a gross profit by 4.32% of rather similar indicators of previous year. Growth of a cost of sales and business expenses, negative balance of other incomes and expenses affected an indicator of a net profit which in comparison with indicators of previous year decreased as in absolute, and in percentage terms. By consideration of indicators of the second entity of JSC “Tambov Plant Oktyabr” positive and negative changes were noted. The entity had an increase in revenue by 16.64%, a gross profit for 14.39%, a sales profit for 11.92%, profit to the taxation for 41.17% and a net profit for 44.36% that demonstrates effective work of the entity on providing a strong growth of an equity. Indicators of the second analyzed entity are represented more preferable, than the first, but nevertheless both entities need to analyze independently expenses and the income from regular, investing and financial activities for further successful development.

This paper illustrates the effects of using different distributions and summary measures, using New Zealand data for the period 2007–2011. Using an annual accounting period, alternative welfare metrics and units of analysis are investigated. In addition, the sensitivity to assumptions about economies of scale within households is examined, and changes in inequality are decomposed into those arising from population and tax structure changes. When considering the period 2007–2010, all measures agree that inequality fell, although the extent of the reduction varies. For the period 2007–2011 (after the tax reforms of 2010) the answer to the question of whether inequality in New Zealand has risen or fallen depends crucially on the combination of welfare metric, income unit, adult equivalent scale and inequality measure used. In empirical studies, it is therefore important to explore a wide range of alternative approaches, providing information for readers to make their own judgements.

A major trend challenging both tax professionals and the Internal Revenue Service (“IRS” or “Service”) is ever-accelerating globalization, and the resulting compliance challenges of international tax administration. United States (“U.S.”) taxpayers with interests in foreign corporations often need to report their interests to the IRS by including Form 5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations, with their annual income tax return. To facilitate timely compliance, Congress imposed penalties for non-compliance starting at $10,000 for each annual accounting period with which a failure to file exists. This article will review Form 5471, who must file it, what information it must contain, how to challenge a penalty, how to correct non-compliance and the impact of the new tax legislation.

Prepaid expense is an expenditure that is paid for in one accounting period, but for which the underlying asset will not be entirely consumed until a future period. Therefore, prepaid expense must not be shown as expense in the accounting period in which it is paid, but instead it must be presented as such in the subsequent accounting periods in which the services in respect of the prepaid expense have been performed.

The plinth emergence of infrastructures sector in the Kingdom of Saudi Arabia cardinally hinges upon the growth and development of the Cement industry. The Saudi cement industry is most cost competitive in the world due to availability of raw material and Fuel at very low prices by the government. This has encouraged the researchers to analyze the relationship between profitability and selected financial ratios of cement industry in Saudi Arabia. The research paper makes an endeavor to determine the profitability of listed cement companies in Saudi Arabia with five years accounting period from 2008 to 2012. The paper encompasses six variables, namely, Debt to Equity Ratio (DER), Inventory Turnover Ratio (ITR), Debtors’ Turnover Ratio (DTR), Creditors’ Velocity (CRSV), Total Assets Turnover Ratio (TATR) and Net profit Margin (NPM). Profitability as a dependent variable is exhibited by Net profit Margin (NPM) while the selected ratios DER, ITR, DTR, CRSV, TATR and CRSV are expressed as independent variables. Based on the findings of the study, it is cogently revealed that there is a significant relationship between the three selected ratios and Net Profit Margin (NPM) of cement companies in Saudi Arabia.

The research objective of this paper is to compare the current approaches in reporting of gross written premium in selected Central and Eastern European countries. Under current Czech regulations, the gross written premium in majority of Czech insurance companies is charged under the payment method set in the contract (i.e. annually, quarterly, monthly, etc.), however revenues from gross written premium for the accounting period are always shown in the proper amount. Our research confirmed that presented information about gross written premium in various jurisdictions is based on different methodologies and proved that for the comparability of data and for their information capability there is crucial to develop a precise definition of gross written premium; only in such case there would be possible to ensure the credibility of statistical data. Using these incomparable data may lead in many cases to misleading conclusions when evaluating the level of insurance in various countries and regions.

This study examines (1) how accurate are small business managers’ subjective responses concerning the performance of their company in comparison to objective performance data and (2) whether there are factors that explain why some respondents offer more accurate responses than others. The authors collect subjective data from 487 Finnish companies in relation to how their profitability has changed over the past 12 months. Regarding objective performance data, the authors use a secondary database of comparable financial information for public and private companies across Europe. The authors collect data on how the companies’ profitability has developed in the accounting period (12 months) preceding the time the survey was administered. However, due to missing secondary data, the effective sample size was reduced to 141 companies.

This paper examined the financial accounting practices of SMEs drawing on a survey of 225 ownermanagers in Ho Municipality. The results revealed that majority of SMEs failed to keep proper accounting records pertaining to their businesses. Consequently, it was difficult for the owner-managers to determine the profit earned or loss suffered in the business during a particular accounting period in addition to the position of assets and liabilities to be able to strategize and make certain adjustments on their businesses.The major reasons for the entities failure to maintain proper accounting records and prepare a complete set of financial statements included high cost of hiring qualified accountants and lack of accounting knowledge on the part of some owner-managers. It is recommended that the National Board for Small Scale Industries (NBSSI) in collaboration with the accounting bodies should organize accounting training programmes for owner-managers of SMEs on proper bookkeeping and accounting practices.

The Charities (Annual Return) Regulations (Northern Ireland) 2014, which came into force on 1 April 2014, outline the information that charities operating in Northern Ireland and registered with the Charity Commission for Northern Ireland (CCNI) must provide in their interim annual report for the accounting period starting on or after 1 April 2014. Until now, charities in Northern Ireland have not been required to submit annual monitoring returns or accounts and reports to CCNI; however, with the start of compulsory registration of charities, annual reporting is gradually being introduced.

The supply chain of a product is essential for understanding its environmental impacts. As parts of agricultural product supply chains, land use (LU) and land use change (LUC) are considered to be major contributors to global CO2 emissions. Nevertheless, LU and LUC (LULUC) are rarely included in GHG estimations for food and feedstuffs. Here we propose a method which can be used to derive emissions from LU and LUC on a regional level. Emissions are distributed over an accounting period chosen to match the physically occurring carbon fluxes. As fluxes from soil organic carbon persist for years or even for decades after a LUC episode, depending on the climatic conditions of the region, we apply 10 and 20 years as suitable accounting periods for tropical and temperate climate zones, respectively. We compare the proposed method with two other methods proposed in the literature. Using two types of feedstuffs (Brazilian soybean-meal and Austrian barley) as examples, we find that the other two methods produce mostly lower emission estimates in the case of Brazilian soybeans, and higher estimates for Austrian barley. We conclude that these differences are caused mainly by different accounting periods and by a (non)consideration of regional specificities. While analysing life cycles necessarily entails a well supported – but still arbitrary – setting of such system boundaries, we argue that the methodology presented here better reflects actually occurring carbon fluxes that we understand to be the foundation of any environmental product assessment.

Merchandise inventory is one account that has significant values and functions. The amount of inventory must not be too much because it will affect to liquidity. However, it should not be too small because it will eliminate potential of revenue from customers. This research aim to whether the accounting treatment of good inventory methods on Prapatan Motor Entreprise. This research uses qualitative approach, The types of data collected are primary and secondary data. This study related of recording, assessment, and reporting of finished goods inventory . This study concludes Prapatan Motor Entreprise have execute an accounting inventory process. The company use physical recording methods and average methods on inventory assesment.on the end of accounting period, Inventory present on financial position and cost of production report. But the company don’t have inventory control card so must stock opname periodically.

This study discuss the problems in Champion Gym that are related to accounting records is the calculation of the income statement still using manual methods, not using a computerized system that complies with accounting standards. So that makes it difficult for management in terms of calculating the income statement every month. The purpose of this study was to create a Profit and Loss Report Calculation System Application Using Single Step Method, which is expected to help Champion Gym management in calculating the company's profit / loss for each period .. The profit and loss calculation application using the Single Step Method can facilitate the management of Champion Gym in calculate income, costs and profit / loss generated each period. So that Champion Gym management can find out in real terms about the company's profit / loss every accounting period. The results of this system are expected to have an impact on the efficiency and effectiveness of Gym operations and obtain an accurate income statement through maximum profit.

Constructions services company has unique characteristics, where the consctruction project arenot all resolve in one accounting period and generally conducted in mid-construction. Necessitatingspecial metods used by construction companies to claim there income and the burden by payingattention to stage of completion of contract activity. The use of methods that are not appropriaterevenue recognition will affect the recognition of expenses that impact the company’s periodicearnings. The research objective was to evaluate the method of recognition revenue and expenses onits construction contract with the Financial Accounting Standards, IAS 11 which came into forceeffectively on 2012. With to have validity of IAS 11 in the year 2012, expected the company whichis engaged in construction services are able to apply IAS 11 in the implementation of recognitioncontract revenue and expenses. Research on the author is in the PT Kreasinta Namora located onJl. Kalibata Tengah 17A No 12 South Jakarta is a company engaged in building constructionsand interior design. The result showed that PT Kreasinta Namora has been followed andimplemented showed that PT Kreasinta Namora has been followed and implemented by both theFinancial Accounting Standards, contract revenue and contract expenses associated withconstruction contracts are recognized at their respective jobs as revenue and expenses with respect tothe contract activity (percentage of completion), in accordance with IAS 11.

Retaining the option-to-harvest encourages people to cultivate forest stands on private land, and periodic purchases of the option keep the stand intact, thus contributing to a greater good. This paper develops and demonstrates the use of a real-option model to encourage the planting of new biologically-diverse forests, and to help conserve existing forests standing on private land. Payments for ecosystem services (PES) take several forms and several instruments and policies have been designed over the years. This study involves a detailed analysis of literature on PES and of various revenue streams generated by forest stands. It was observed that the option-to-harvest encouraged expansion and conservation of small-scale forests. The methodology adopted and product designed herein involves the purchase of the option-to-harvest at the beginning of each accounting period, especially by timber suppliers, with a view to preventing potentially steep declines in spot timber prices from the potentially excess supply. The incentive structure is simplified to include the interest foregone on the terminal value, reduced by the existential value derived from such delay. The real-option model employing bounded random walk projections is applied to a registered Clean Development Mechanism (CDM) project. Subject to the alternative use of the parcel of land, the option payments are found to represent 3.83–6.57 % of the value of stand conserved. Suitable institutional mechanisms would need to be developed to transfer the option payments to the growers, across large numbers of such projects.

The article deals with the analysis of inequality in the distribution of the economic result in businesses engaging in field production in the Czech Republic, by way of the assessment of the impact of subsidies on the said inequality and by defining the effect of the size of the business on the economic result as well as inequality. The methodical tool is the quantification of the Gini coefficient and its elasticity. The data basis consists of panel data of 140 agricultural businesses focusing on field production for the period of the years 2005–2010.The main results of the submitted article substantiate a high inequality in the distribution of the economic result for the accounting period among field production businesses. The said inequality is not generally caused by the differing size of the analyzed businesses, and the associated volume of subsidies obtained, but is affected by other factors, such as the management quality, the investment activity of the business, or exceptional events. Subsidies do contribute to the more equal distribution of the economic result, but their impact is very small. Out of the individual categories of subsidies, the ones with the main redistribution effect are direct payments, as a result of the high proportion of total subsidies that they comprise.