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The concept of risk is fundamental in various scientific fields, including physics, biology and engineering, and is crucial for the study of complex systems, especially financial markets. In our research, we introduce a novel risk model that has a natural transactional–financial interpretation. In our approach, the risk of holding a financial instrument is related to the measure of the possibility of its loss. In this context, a financial instrument is riskier the more opportunities there are to dispose of it, i.e., to sell it. We present a model of risk understood in this way, introducing, in particular, the concept of financial time and a financial frame of reference, which allows for associating risk with the subjective perception of the observer. The presented approach does not rely on statistical assumptions and is based on the transactional interpretation of models. To measure risk, we propose using the Radon transform. The financial concept of risk is closely related to the concepts of uncertainty, entropy, information, and error in physics. Therefore, the well-established algorithmic aspects of the computed tomography method can be effectively applied to the broader field of uncertainty analysis, which is one of the foundational elements of experimental physics. [ABSTRACT FROM AUTHOR]

Cryptocurrencies have emerged as an instrument of exchange, typical of the role of money. But in a short time, due to high fluctuations. Cryptocurrencies have become derivative financial instruments because of large increases in a very short time. Like any financial instrument it had a correction period, which brought huge losses to investors. Accounting for cryptocurrencies is a common problem nowadays. This new method of exchange also affects the life of companies. At first cryptocurrencies directly affected individuals, but as their popularity grew, they began to become involved in the economic life of companies. These economic acts need to be reflected in the economic statements of companies. There is no clear regulation on how to account for these cryptocurrencies. The aim of the paper is to address the need for regulation in the crypto area. The new financial instrument to be presented in a company's financial statements.

The purpose of the study was to disclose the content of agrarian receipts and the mechanism for their application in the settlement system of Ukrainian agricultural producers as an alternative way to attract resources for doing business under martial law in Ukraine, as well as to make proposals for their accounting in order to avoid business risks. The state of lending to agricultural producers during martial law is analyzed and the importance of lending against agrarian receipts is substantiated. The experience of Brazil in the process of lending for the future harvest was assessed. The history of the introduction of agrarian receipts in Ukraine is characterized on the basis of borrowing the idea of Brazil. The essence of agrarian receipts is revealed and the legal framework for their circulation in Ukraine is investigated. The difference between agrarian receipts and other financial instruments (bill, forward contract, pledge) is determined. The problematic aspects of the introduction of agrarian receipts into circulation, which hinder the effectiveness of the use of this tool by agricultural enterprises in the process of attracting financial resources, are systematized. The business models of relationships between counterparties in the process of circulation of agrarian receipts are characterized. Theoretical and practical aspects of accounting for agrarian receipts have been studied and problematic aspects in the methodology for reflecting settlements by agrarian receipts in the system of accounting accounts have been identified. Organizational, methodological and practical recommendations are proposed aimed at improving the procedure for recording transactions with commodity agrarian receipts in the accounting system as an innovative way of financing agricultural producers at the domestic and international levels. This will make it possible to quickly collect data on the circulation of agrarian receipts and improve information support in making managerial decisions by various groups of Ukrainian and foreign stakeholders. [ABSTRACT FROM AUTHOR]

[Purpose] The purpose of this research is to examine the legislative approaches to regulating cryptocurrencies in different states and regions. The aim is to analyze the legal framework of cryptocurrencies in the Kazakh and international economy and determine the modern scientific approaches used in their functioning. [Methodology/Approach/Design] The study employs a combination of theoretical and empirical methods, including analysis, synthesis, historical analysis, comparative analysis, formal-logical methods, and hermeneutics. A comparative analysis is conducted to assess the different regulatory approaches of states towards cryptocurrencies and evaluate the justification for terms such as "digital currency" and "digital asset." [Findings] The findings of this study underscore the necessity for further amendments to the legislation in Kazakhstan, specifically addressing overlooked details and features concerning the financial and legal aspects of cryptocurrencies. Key decisions need to be made regarding their acceptance for public payments, tax considerations, declaration requirements, and recognition as private money. The study emphasizes the significance of adopting a comprehensive and forward-thinking legal approach that supports the full legalization of cryptocurrencies while establishing a robust regulatory framework. This approach would effectively safeguard the interests of individuals and entities, address concerns, and promote a balanced and secure environment.

Classic inventory theory suggests that inventory plays a vital role in matching demand and supply. This paper provides both country- and firm-level evidence that inventory can be used as a financial instrument to take advantage of arbitrage opportunities in financial markets with limited capital mobility. Using data from China customs' metal imports and firm-level inventory from metal processing industries, we show that firms can utilize the inventory of an imported product to carry lower cost capital into a country with strict capital controls and, thus, gain higher financial returns. Specifically, at the country level, we find that the level of imported metal commodities is positively associated with the expected returns from financial arbitrage. At the firm level, we find that a higher expected return from financial arbitrage will incentivize a firm to increase its inventory level through short-term borrowing. In addition, our evidence supports the notion that firms with higher liquidation value, larger size, and higher sales growth (i.e., firms with higher borrowing capacity) may be more active in using inventory as an instrument to seek higher financial gains. We also utilize a unique regulatory policy shock as a quasi-natural experiment to enhance the causality interpretation of our empirical findings. This paper was accepted by Vishal Gaur, operations management. Funding: This work was supported in part by the National Natural Science Foundation of China [Grant 72201230] and the Research Grants Council of Hong Kong, University Grants Committee [Grant 14504621]. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2023.4873. [ABSTRACT FROM AUTHOR]

[Purpose] The purpose of this research is to examine the legislative approaches to regulating cryptocurrencies in different states and regions. The aim is to analyze the legal framework of cryptocurrencies in the Kazakh and international economy and determine the modern scientific approaches used in their functioning. [Methodology/Approach/Design] The study employs a combination of theoretical and empirical methods, including analysis, synthesis, historical analysis, comparative analysis, formal-logical methods, and hermeneutics. A comparative analysis is conducted to assess the different regulatory approaches of states towards cryptocurrencies and evaluate the justification for terms such as "digital currency" and "digital asset." [Findings] The findings of this study underscore the necessity for further amendments to the legislation in Kazakhstan, specifically addressing overlooked details and features concerning the financial and legal aspects of cryptocurrencies. Key decisions need to be made regarding their acceptance for public payments, tax considerations, declaration requirements, and recognition as private money. The study emphasizes the significance of adopting a comprehensive and forward-thinking legal approach that supports the full legalization of cryptocurrencies while establishing a robust regulatory framework. This approach would effectively safeguard the interests of individuals and entities, address concerns, and promote a balanced and secure environment. [ABSTRACT FROM AUTHOR]

The purpose of the study was to disclose the content of agrarian receipts and the mechanism for their application in the settlement system of Ukrainian agricultural producers as an alternative way to attract resources for doing business under martial law in Ukraine, as well as to make proposals for their accounting in order to avoid business risks. The state of lending to agricultural producers during martial law is analyzed and the importance of lending against agrarian receipts is substantiated. The experience of Brazil in the process of lending for the future harvest was assessed. The history of the introduction of agrarian receipts in Ukraine is characterized on the basis of borrowing the idea of Brazil. The essence of agrarian receipts is revealed and the legal framework for their circulation in Ukraine is investigated. The difference between agrarian receipts and other financial instruments (bill, forward contract, pledge) is determined. The problematic aspects of the introduction of agrarian receipts into circulation, which hinder the effectiveness of the use of this tool by agricultural enterprises in the process of attracting financial resources, are systematized. The business models of relationships between counterparties in the process of circulation of agrarian receipts are characterized. Theoretical and practical aspects of accounting for agrarian receipts have been studied and problematic aspects in the methodology for reflecting settlements by agrarian receipts in the system of accounting accounts have been identified. Organizational, methodological and practical recommendations are proposed aimed at improving the procedure for recording transactions with commodity agrarian receipts in the accounting system as an innovative way of financing agricultural producers at the domestic and international levels. This will make it possible to quickly collect data on the circulation of agrarian receipts and improve information support in making managerial decisions by various groups of Ukrainian and foreign stakeholders.

The concept of risk is fundamental in various scientific fields, including physics, biology and engineering, and is crucial for the study of complex systems, especially financial markets. In our research, we introduce a novel risk model that has a natural transactional–financial interpretation. In our approach, the risk of holding a financial instrument is related to the measure of the possibility of its loss. In this context, a financial instrument is riskier the more opportunities there are to dispose of it, i.e., to sell it. We present a model of risk understood in this way, introducing, in particular, the concept of financial time and a financial frame of reference, which allows for associating risk with the subjective perception of the observer. The presented approach does not rely on statistical assumptions and is based on the transactional interpretation of models. To measure risk, we propose using the Radon transform. The financial concept of risk is closely related to the concepts of uncertainty, entropy, information, and error in physics. Therefore, the well-established algorithmic aspects of the computed tomography method can be effectively applied to the broader field of uncertainty analysis, which is one of the foundational elements of experimental physics.

Cryptocurrencies have emerged as an instrument of exchange, typical of the role of money. But in a short time, due to high fluctuations. Cryptocurrencies have become derivative financial instruments because of large increases in a very short time. Like any financial instrument it had a correction period, which brought huge losses to investors. Accounting for cryptocurrencies is a common problem nowadays. This new method of exchange also affects the life of companies. At first cryptocurrencies directly affected individuals, but as their popularity grew, they began to become involved in the economic life of companies. These economic acts need to be reflected in the economic statements of companies. There is no clear regulation on how to account for these cryptocurrencies. The aim of the paper is to address the need for regulation in the crypto area. The new financial instrument to be presented in a company's financial statements. [ABSTRACT FROM AUTHOR]

The article considers implications of algorithmic stablecoins, with a particular focus on the Terra/Luna ecosystem and their impact on the financial and regulatory landscape. It examines the collapse of TerraUSD (UST) and its subsequent effects on the global cryptocurrency market. The article delves into the mechanics of UST's pegging mechanism, which relied on complex algorithmic adjustments without fiat collateral, leading to its dramatic devaluation. The study highlights the regulatory challenges posed by decentralized financial systems and algorithmic stablecoins, emphasizing the difficulties in legally addressing the actions of creators within a system perceived as a financial pyramid. It underscores the need for clearer regulatory frameworks, not only in Polish legislation but also under the MiCA (Markets in Crypto-Assets) regulation in the EU, along with similar legislative efforts globally. By analyzing the systemic risks and vulnerabilities exposed by the Terra/Luna collapse, the article advocates for a balanced regulatory approach that ensures investor protection while fostering innovation. [ABSTRACT FROM AUTHOR]

Abstract In recent years, the mining of cryptocurrencies such as Bitcoin has attracted much global attention due to the simplicity and high profitability of this business, especially in countries with low electricity rates. The process of cryptocurrency mining using cryptocurrency mining devices requires a significant amount of computing power. This industry, which is increasingly growing in energy and carbon emissions, can cause environmental concerns. Common ways to reduce this amount of energy consumption are to prohibit mining and charge these loads at a higher electricity rate; however, these solution methods are not feasible and applicable in many countries. This paper presents an energy efficiency program to persuade the customers to mine cryptocurrency using high‐efficient cryptocurrency mining devices (CMDs), including informative, regulation, and financial policy instruments. This energy efficiency approach suggests a standard, if implemented, would ban the application of inefficient CMDs, and would encourage the cryptocurrency miners to improve the profitability of their business with high‐efficient CMDs through a penalty‐reward strategy. The performance of this energy efficiency program is studied through an analysis of data gathered from different CMDs used in Iran. The effectiveness of this suggested program is proved through its sufficient incentives for miners using high‐efficient CMDs.

The development of new technologies in the field of finance (fintech) creates new opportunities and ways to carry out economic activity. One of these tools is blockchain and technologies created on its basis. One of the most famous of such tools is the process of issuing and selling digital coins (tokens), called Initial coin offering (ICO). The ICO process is often mistakenly viewed as a simpler and faster alternative to the classic IPO procedure. However, these procedures have more differences than similarities. This article provides a detailed comparison of IPO and ICO in terms of a number of key parameters, key similarities and differences from the point of view of both the investor and the issuer. At the end, there are recommendations for choosing an instrument depending on the goals of the investor and the issuer.

The intensive development of digital technologies, their penetration into business and everyday life calls for the assessment of theoretical validity and practical feasibility of including the concepts of “digital rights” in civil law legislation. The purpose of the study is to develop a methodology for identifying digital rights as an object of accounting and control. The article analyzes the definitions of the concept “digital rights”, “obligation and other rights”, evaluates the forms of digital rights implementation and restrictions on the disposal of digital rights, proposed in Law No. 34-FZ. The authors consider the applied value of the phenomenon of digital rights not only in civil paper work, but also in accounting and control processes. The concepts developed by accounting methodologists to post transactions with digital rights in ledgers are revealed. On the basis of generalization of the initial technological foundations of asset tokenization in business projects, a conclusion is made that a shared problem in digital rights management involves the choice of digital algorithms, financial platforms for their issuance and circulation. The analysis of the Russian and international rules for the identification of digital financial assets (DFA) (tokens) as an object of the accounting policy of companies and their use in preparation of reports makes it possible to state that DFA can be considered a financial instrument with all subsequent accounting and control and analytical operations only when a specific right, for example, participation in the replacement of real shares, is exercised. It is recommended to make some amendments related first, to the accounting and reporting methodology to facilitate the identification and assessment of digital rights holders (investment tokens) that replace securities, and, second, to account 58 “Financial Investments”, namely to open an additional subaccount to account for securities which are replaced by digital assets or digital currency.

In recent years, the mining of cryptocurrencies such as Bitcoin has attracted much global attention due to the simplicity and high profitability of this business, especially in countries with low electricity rates. The process of cryptocurrency mining using cryptocurrency mining devices requires a significant amount of computing power. This industry, which is increasingly growing in energy and carbon emissions, can cause environmental concerns. Common ways to reduce this amount of energy consumption are to prohibit mining and charge these loads at a higher electricity rate; however, these solution methods are not feasible and applicable in many countries. This paper presents an energy efficiency program to persuade the customers to mine cryptocurrency using high‐efficient cryptocurrency mining devices (CMDs), including informative, regulation, and financial policy instruments. This energy efficiency approach suggests a standard, if implemented, would ban the application of inefficient CMDs, and would encourage the cryptocurrency miners to improve the profitability of their business with high‐efficient CMDs through a penalty‐reward strategy. The performance of this energy efficiency program is studied through an analysis of data gathered from different CMDs used in Iran. The effectiveness of this suggested program is proved through its sufficient incentives for miners using high‐efficient CMDs. [ABSTRACT FROM AUTHOR]

Farming and food production sustainability increasingly depends on the availability of a clean energy model for irrigated agriculture. This can be achieved by massively introducing photovoltaic irrigation systems (PVI) with sufficient quality and reliability. Nevertheless, such PVI projects require high upfront investment and long payback times, so access to long-term, low-cost capital is essential to ensure their competitiveness. In this regard, decentralized financial (DeFi) solutions based on blockchain (BC) technology present a number of features that can be applied to produce financial instruments (FI) well suited to attract investors to PVI projects and to reduce the cost of clean energy for irrigators. In order to assess such a possibility, a DeFi FI tailored for PVI has been produced and implemented in BC. We demonstrate that a single smart contract executed in a distributed ledger can execute the different tasks related to the securitization of PVI assets. The impact on the cost of capital for PVI projects is significant, leading to an estimated reduction in the cost of clean energy for irrigators of 22%. Nevertheless, decentralization also introduces a number of specific risks that must be considered and mitigated. [ABSTRACT FROM AUTHOR]

Purpose: The study examines the compliance level with IFRS 7 by deposit money banks in Nigeria for the period between 2017-2020. Design/Methodology/Approach: The study adopts an un-weighted disclosure index method to test the two hypotheses and using Qualitative Grading System (QGS) to rank the level of compliance with the aid of explorative research design. Findings: The study found that in average, the over-all compliance by DMBs at commencement year stood at 51.04% and this implies that as at the commencement year DMBs weakly complied with the requirements of IFRS 7. Implications/Originality/Value: The study concluded that though DMBs in Nigeria do not totally comply with the provisions of IFRS 7 throughout the study period yet, there have been significant improvements in the level of compliance with the standard disclosure in the annual reports of DMBs in Nigeria. It’s therefore recommending that banks should strive to ensure full compliance with the standards as this will add more confidence in the economy. This must be done with the enforcement of regulatory bodies. The FRCN should intensify its mandate to ensure banks strictly comply with the provisions of IFRS.

Research on financial rent has been at the forefront of economics since the middle of the twentieth century in market economies due to the growing role of financial capital and the formation of the stock market. Today some scholars believe that financial rent is a type of economic rent, so it should be reflected in accounting. The purpose of the article is to develop recommendations for the reflection of financial rent in the accounting system. This research has solved the following tasks: to determine significant differences in the understanding of financial rent in the theory of finance and the rent in economic theory; to identify the type of resource that produces financial rent; to form approaches to the assessment and accounting for financial rent. It was established that in financial science the concept of financial rent does not correlate with the concept of economic rent, but it is appropriate to consider the financial rent as income that should be reflected in the accounting system to ensure the effectiveness of further management decisions. The identification of the composition of financial resources for the needs of their accounting allowed to determine the type of financial instruments, as well as operations that will form the financial rent. Author's approaches to the recognition of financial rent as accounting object were presented and organizational and methodical provisions of accounting for financial rent were developed. In particular, the procedure for determining the amount of financial rent and its reflection in the accounts depending on the sources of its formation was proposed. The practical significance of the study results is to increase the informativeness of the accounting system for management staff in order to manage the efficiency of the enterprise.

In present times, agrarian receipts are becoming increasingly popular among small agricultural producers. In parallel, the issues related to the improvement of the legal framework for their functioning and circulation, the incompleteness of the process of registration of property rights and lease agreements for land plots in the State Register of property rights to immovable property, low awareness of farmers with the mechanisms of circulation of these financial instruments appear to be relevant. The study is aimed at theoretical substantiating the problems, achievements and prospects associated with the functioning and circulation of agrarian receipts, as well as developing practical recommendations for improving this process. The study was carried out according to the general methodological scheme of the system approach. In the course of the study, the methods of comparative analysis, statistics-economic, abstract-logical, graphic, and some other methods were used. It is determined that the functioning of the five-year project «Agrarian Receipts in Ukraine», initiated by the International Finance Corporation (IFC), provided a powerful basis for the successful use of agrarian receipts. The peculiarities of functioning and circulation of agrarian receipts in agriculture of Ukraine are substantiated. A comparative analysis of the use of agrarian receipts and other credit instruments by agricultural producers is carried out. Problems are identified and advantages associated with the use of agrarian receipts are outlined. It is proved that agrarian receipts are an effective instrument for attracting relatively cheap credit resources by small and medium-sized agricultural producers. Registration of agrarian receipts speeds up the procedure for obtaining a loan; does not require additional collateral, since the collateral is the future crop; can be repaid by the products for which the loan was provided. It is determined that the improvement requires a mechanism of functioning of agrarian receipts in terms of increasing the period of their use, expanding the list of entities that can issue agrarian receipts, changing the collateral for agrarian receipt. Further research will be aimed at developing new and improving existing financial instruments of rural development.

Derivative financial instruments play a very important role in financial markets, but they are seen as rather contradictory and their impact on financial markets and the stability of these markets has not been comprehensively examined. Therefore, the aim of this article is to systematise the potential risks of derivatives in the context of the past global financial crisis, and the recent situation in Lithuania. In particular, growing international tension and deteriorating economic situation, make it necessary to re-analyse the recent crisis, its causes and consequences. The 2007–2008 global financial crisis revealed the challenges and risks of derivatives and showed the tremendous impact that their imprudent use may have on the stability of a financial system. The Lithuanian economy recently joined the euro, but its macroeconomic fundamentals show certain risks. Infrastructures of the derivatives market, liquidity and an adequate supervisory framework are necessary to maintain stability.

The article is dedicated to the description of the financing instrument for cross-border cooperation within the European Union, which in recent years has become an important instrument of European Union policy in the context of regional development, including cooperation with nonEU border regions. The article aims to analyze the INTERREG financial support instrument, analyzing the evolution of this instrument and its main objectives. The European Territorial Cooperation Instrument has significant financial and administrative resources, provides support to EU regions and economically underdeveloped third countries, ensures the development of an innovative economy and activates cooperation programs in new directions. For the research, the reports published by the European Commission, statistics and scientific articles by other authors specialized in this field were used.

In the context of integration, the capital market has important implications for strengthening economic resources for development. This becomes even more important as the derivative securities market has recently emerged in some countries. It is an opportunity for countries to approach many capital sources, especially foreign capital. The objective of this paper is to identify factors affecting the development of Vietnamese derivative financial markets. The paper uses exploratory factor analysis and ordinary least squares to test the model. A survey sample includes 152 managers and experts of Vietnamese derivative securities companies in 2019. The results show that the International integration factor has the same direction, while the Legal environment factor has an adverse impact on the development of the Vietnamese derivative securities market. Therefore, Vietnamese regulatory bodies should amend some laws to create stability in the legal corridor, and state management agencies in the country need the orientation and the international integration strategy to attract financial resources for the development of Vietnam’s economy.

The article classified the criteria by which it is possible to carry out a targeted selection of existing variety of trading systems used in the creation of modern trading robots. Knowledge of this kind of classification allows to accelerate the processes of trading strategies research, which can be combined into a single unit, denoted by a portfolio of automated trading systems.

The article actualizes the main content and problems of implementation of the Monterrey consensus of the International conference on financing for development in the modern geopolitical and geo-economic space, the role of the International monetary Fund and its financial instruments in the Eurasian geopolitical space in this process.Purpose: to show the inconsistency of the financial policies of Western countries, challenges and threats to financial security of developing countries.Historical and comparative methods of research are used.The study revealed the selectivity of economically developed countries in approaches to financial support for developing countries, the use of financial instruments to protect the national interests of individual countries or groups to the detriment of others, the difference in approaches of the West and the East in solving problems of economic development.

Research on financial rent has been at the forefront of economics since the middle of the twentieth century in market economies due to the growing role of financial capital and the formation of the stock market. Today some scholars believe that financial rent is a type of economic rent, so it should be reflected in accounting. The purpose of the article is to develop recommendations for the reflection of financial rent in the accounting system. This research has solved the following tasks: to determine significant differences in the understanding of financial rent in the theory of finance and the rent in economic theory; to identify the type of resource that produces financial rent; to form approaches to the assessment and accounting for financial rent. It was established that in financial science the concept of financial rent does not correlate with the concept of economic rent, but it is appropriate to consider the financial rent as income that should be reflected in the accounting system to ensure the effectiveness of further management decisions. The identification of the composition of financial resources for the needs of their accounting allowed to determine the type of financial instruments, as well as operations that will form the financial rent. Author's approaches to the recognition of financial rent as accounting object were presented and organizational and methodical provisions of accounting for financial rent were developed. In particular, the procedure for determining the amount of financial rent and its reflection in the accounts depending on the sources of its formation was proposed. The practical significance of the study results is to increase the informativeness of the accounting system for management staff in order to manage the efficiency of the enterprise. [ABSTRACT FROM AUTHOR]

Derivative financial instruments play a very important role in financial markets, but they are seen as rather contradictory and their impact on financial markets and the stability of these markets has not been comprehensively examined. Therefore, the aim of this article is to systematise the potential risks of derivatives in the context of the past global financial crisis, and the recent situation in Lithuania. In particular, growing international tension and deteriorating economic situation, make it necessary to re-analyse the recent crisis, its causes and consequences. The 2007-2008 global financial crisis revealed the challenges and risks of derivatives and showed the tremendous impact that their imprudent use may have on the stability of a financial system. The Lithuanian economy recently joined the euro, but its macroeconomic fundamentals show certain risks. Infrastructures of the derivatives market, liquidity and an adequate supervisory framework are necessary to maintain stability. [ABSTRACT FROM AUTHOR]

The article is dedicated to the description of the financing instrument for cross-border cooperation within the European Union, which in recent years has become an important instrument of European Union policy in the context of regional development, including cooperation with non-EU border regions. The article aims to analyze the INTERREG financial support instrument, analyzing the evolution of this instrument and its main objectives. The European Territorial Cooperation Instrument has significant financial and administrative resources, provides support to EU regions and economically underdeveloped third countries, ensures the development of an innovative economy and activates cooperation programs in new directions. For the research, the reports published by the European Commission, statistics and scientific articles by other authors specialized in this field were used. [ABSTRACT FROM AUTHOR]

The objective of this study was to analyze and compare between cost of equity capital between before and after adoption of IFRS on Statement of Financial Accounting Standard Financial Instrument (PSAK) for banking companies listed in Indonesian Stock Exchange. The period on this study was 2008-2009 for before adoption and 2013-2014 for after adoption. Data on this study was secondary data such as annual financial reporting and share price. Cost of equity capital was measured using Ohlson Model. Sample in this study was banking companies listed in Indonesian Stock Exchange in 2008, 2009, 2013, and 2014. Selecting sample was by purposive sampling with specific criteria. Results of this study proved that cost of equity capital was lower for after adoption of IFRS on Statement of Financial Accounting Standard Financial Instrument for banking companies listed in Indonesian Stock Exchange than before adoption. It meant that adoption IFRS could reduce cost of equity capital. This result had an impact on reducing non performing loan, increasing loan to deposit ratio, and increasing net interest margin.

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MiFID II and MiFIR were adopted in the light of the financial crisis in order to enhance the investor protection and to ensure transparent trading. Both referred to as MiFID II, they replace former MiFID I and cover securities, investment intermediaries, and trading venues. The aim of MiFID II is to put in place a single European rulebook regarding investment services and activities, including ancillary activities, and to strengthen the legal framework set up by MiFID I. In addition, MiFID II regulatory package is extended for the number of financial instruments. MiFID II requires that the trading is performed on regulated platforms. MiFID II rules reflect technical advances in the investment business as well. Therefore, regulatory framework regarding the high frequency trading was introduced. The date of entry into application of MIFID II is January 3rd, 2018. Such long period for entering into application is due to the complexity of the implementing process, mostly from technical point of view. MiFID II is very challenging for ESMA, national competent authorities, and for other stakeholders. The study is written from the perspective of investment firms as one of these stakeholders. The paper covers topics such as definition of investment activities, investment services and financial instruments, topic of passporting and the third country regime, incentives, suitability, and appropriateness of product design, information provided to client, execution only and best execution rules, records management, client assets, conflict of interests, complaints handling, client classification, corporate governance, commodity derivatives.

In the knowledge society, when there is a rapidly evolving information technology, the virtual markets, namely the online transactions, have created the premises emergence and development of new technologies of using of finances, namely virtual coin (Bitcoin). Use of this coin appears as an alternative to traditional currencies, but they are not under the control of no body, are devoid of inflation and maintain the anonymity of users. Following the evolution of this new type of coin, we proposed in this paper to present some general aspects of this coin focusing on global controversies on using Bitcoin. We have reviewed several myths that have arisen with the development and penetration of its on market and because it is a volatile coin can generate huge gains but and huge losses, we have studied fluctuation and implications for users and investors and the attraction of the drug dealers and criminals for using virtual currency, Bitcoin. At the end of the paper, based on the analysis we have tried to outline the future of this modern payment system. Thus, we found that lately, in that its value has fluctuated strongly, and increased buyer confidence, but appeared and increased cyber attacks, and the fear that if the state has no a role in protecting citizens from fraud, we can assist at the development of financial schemes extremely dangerous. The financial experts believe that if the world banks would jointly solve all the problems, the virtual money will have a real chance of life.

To ensure conditions for economic growth, prosperity and social integration in the European Union there are financial repayable instruments (JEREMIE Initiative). Despite the need to give money, this form is evaluated favorably, and thanks to revolving generates more benefits, because the money once transferred returns, multiplying the value of support and the number of beneficiaries. Considering the functioning of the JEREMIE Initiative from the point of view of financial intermediaries and the role they play in the financial market, one may be tempted to say that by eliminating inequalities on the market, they are able to effectively distribute financial resources.

The article highlights the main results of the study on the assessment and presentation of the activity of pawnshops in accounting, taking into account special features. The factors that have a significant impact on the informativeness of the financial statements of pawnshops, prepared in accordance with the requirements of International Financial Reporting Standards (IFRS), were investigated. The special features of pawnshops activity in the part of granting of loans are considered, in particular: secured loan, the absence of a purpose for its sale as an asset, short-term credit granting. The following is presented: schematics of the process of crediting by a pawnshop, criteria and groups for the classification of financial assets of pawnshops. It was determined that the financial assets of pawnshops are formed from contractual cash flows consisting of payments for repayment of the principal amount of the asset and interest on its outstanding share. It is determined that: financial assets of the pawnshops can be evaluated at amortized cost or at fair value - accounts receivable that arise in the pawnshop in the lending process are financial assets that should be evaluated at amortized cost. The lack of recommendations and explanations for the pawnshops in calculating the effective interest rate has been identified. Recommended for calculating the effective interest rate for the pawnshops, using: basic provisions for calculating the effective interest rate for the bank's financial instruments; functions: IRR and XIRR of the Microsoft Excel software package. Situational examples are given for determining the impact on the financial result of the package of additional services in the process of applying the loan assessment at amortized cost using the effective interest rate method. The recommendation for the calculation of the effective interest rate, taking into account special features of the pawnshop's activity, is included in the part: short-term loans and one-time repayment of the principal amount of debt and interest at the end of the contract.