Search results

1 – 8 of 8
Book part
Publication date: 20 March 2023

Yuri Biondi and Lasse Oulasvirta

Recognition, measurement and disclosure of public sector assets constitute relevant matters for national and international public sector accounting standard-setting. This chapter…

Abstract

Recognition, measurement and disclosure of public sector assets constitute relevant matters for national and international public sector accounting standard-setting. This chapter develops a theoretical analysis drawing upon a dualistic approach contrasting current value and historical cost accounting models. Accordingly, the latter should be adapted and then preferred to cope with public sector specificities, with a view to providing information for and enforcing accountability to citizens and their political representatives. Drawing upon this theoretical setting, our analysis develops a consistent design for the overarching conceptual framework for assets in general, providing illustrative examples for specific categories such as financial, heritage, natural and military assets.

Details

Measurement in Public Sector Financial Reporting: Theoretical Basis and Empirical Evidence
Type: Book
ISBN: 978-1-80117-162-5

Keywords

Book part
Publication date: 20 March 2023

Josette Caruana, Marco Bisogno and Mariafrancesca Sicilia

This introductory chapter elaborates on the tricky issue of measurement in public sector financial reporting, which arises due to the particular features of the public sector when…

Abstract

This introductory chapter elaborates on the tricky issue of measurement in public sector financial reporting, which arises due to the particular features of the public sector when compared to the private sector. It provides a summary of the book chapters, highlighting the theoretical/practical frameworks used, methodologies and conclusions. Three themes are identified in the book, namely, (a) frameworks and methodologies; (b) measuring and reporting the elements in financial statements; and (c) heritage. This chapter identifies important avenues for further research.

Details

Measurement in Public Sector Financial Reporting: Theoretical Basis and Empirical Evidence
Type: Book
ISBN: 978-1-80117-162-5

Keywords

Article
Publication date: 26 October 2012

Yuri Biondi and Pierpaolo Giannoccolo

The purpose of this paper is to develop a model of innovative industries which face coopetition: firms compete while committing at the same time to R&D joint ventures and other…

Abstract

Purpose

The purpose of this paper is to develop a model of innovative industries which face coopetition: firms compete while committing at the same time to R&D joint ventures and other cooperative agreements. These joint activities are likely to occur in presence of complementarities on demand or supply sides; they raise specific accounting issues concerned with recognition and measurement of intangible resources committed to, and generated from them.

Design/methodology/approach

The paper develops a heuristic industrial economic model characterized by joint utility of outputs for custumers on the demand side, and potential complementarities in R&D activities on the supply side. The authors’ model describes different scenarios generated by alternative corporate pricing strategies. In particular, these strategies (as implemented by firms or imposed by regulators) influence both infrastructure corporate investments and the creation and stability of coopetitive relationships.

Findings

The model scenarios show that especially accounting for intangible resources – related to processes of innovation and R&D – should deserve specific attention. Firms and regulators need to properly account for both hard intangibles that have market prices of reference, and soft and ethereal intangibles that factually have not. A stock method of accounting for intangibles results then which is narrow and biased, because of its focus on hard intangibles alone. A flow method of accounting should be preferred, which tracks the cumulated investment flow of direct and indirect expenditures in innovation and development, properly allocated within and between firms.

Originality/value

The paper argues for regulatory frameworks that enable increasing the positive effects of cooperation while repressing collusive behaviours (technological standardization, fiscal incentives to welfare‐improving innovation and strategy, public research, costumers’ protection, and so forth). Concerning the overall industrial organization, the paper's theoretical analysis shows the need for better recognition and measurement of intangibles and complementarities in costing and pricing, for both corporate and regulatory purposes.

Content available
Book part
Publication date: 20 March 2023

Abstract

Details

Measurement in Public Sector Financial Reporting: Theoretical Basis and Empirical Evidence
Type: Book
ISBN: 978-1-80117-162-5

Content available
Book part
Publication date: 13 November 2017

Nohora García

Abstract

Details

Understanding Mattessich and Ijiri: A Study of Accounting Thought
Type: Book
ISBN: 978-1-78714-841-3

Open Access
Article
Publication date: 2 November 2018

Nihel Chabrak

Considering the growing importance of finance in shaping corporate and human activities, the purpose of this paper is to focus on the United Nations Environment Programme (UNEP…

2967

Abstract

Purpose

Considering the growing importance of finance in shaping corporate and human activities, the purpose of this paper is to focus on the United Nations Environment Programme (UNEP) Inquiry into the Design of a Sustainable Financial System that aims to align the financial system with sustainable development, with a focus on environmental aspects. Following the inquiry call for better disclosure approaches of material information on the “sustainability impacts” of the financial system as one of the areas of improvement to move toward a sustainable financial system, the author argues for a reform of the accounting model to better reflect the compliance of businesses with “quality of growth” imperatives.

Design/methodology/approach

The paper rests on the entity theory of Littleton (1934).

Findings

The new accounting model requires creating a new equity capital account for the entity that is separate from the shareholders equity account. Valuation as well as other related issues on the functioning of this account is briefly explored in the paper. The reform also requires entrusting the responsibility of answering questions related to valuation, capital maintenance and income distribution to the board of directors that should be composed of representatives of the different capitals which have accrued, temporarily or indefinitely, to the business firm.

Research limitations/implications

This paper calls researchers to explore the theoretical avenues proposed in the paper to develop the model in practice.

Practical implications

The implementation of this reform requires a regulatory reform and the redesign of the economic coordination mechanisms which could be challenging in practice.

Social implications

The accounting model proposed in the paper contributes to a new quality of growth, which is a growth based on well-being and inclusiveness.

Originality/value

The paper draws on the UNEP framework, which has not been investigated in other research studies.

Details

Journal of Capital Markets Studies, vol. 2 no. 2
Type: Research Article
ISSN: 2514-4774

Keywords

Article
Publication date: 18 January 2021

Vera Palea

The purpose of this paper is to discuss whether fair value accounting fits for long-term equity investments, which are considered key to retool economies according to…

Abstract

Purpose

The purpose of this paper is to discuss whether fair value accounting fits for long-term equity investments, which are considered key to retool economies according to sustainability criteria. In doing so, the paper focuses on the European Union and addresses the European Commission’s (2018a) concern that current accounting rules are unfit for achieving the United Nations Sustainable Development goals and the targets of the Paris Agreement on climate change.

Design/methodology/approach

The paper grounds in a wide literature review on the effects of fair value accounting on investors’ asset allocation strategies. By critically integrating literature on the notion of long-term investment with theories and possible accounting approaches, the paper provides implications for a revision of the current measurement system for long-term equity investments.

Findings

The literature review supports the view that fair value accounting has played a role in discouraging equity investments over time, thus leaving economies with poorer risk-sharing and weaker long-term investments. The paper contributes to the debate on alternative measurement systems by suggesting possible solutions in relation to controversies arising from empirical evidence.

Originality/value

Reorienting economies according to sustainability criteria represents an urgent issue which requires prompt and policy-oriented responses. Accordingly, this paper offers insights and guidelines that can help policymakers revise current accounting rules for long-term equity investments in line with sustainable development objectives.

Details

Meditari Accountancy Research, vol. 30 no. 1
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 31 May 2019

Sotirios Karatzimas and Carles Griful Miquela

The purpose of this paper is to examine and compare the views of mayors and comptrollers of Catalan municipalities on aspects related to the Spanish legislation on financial…

Abstract

Purpose

The purpose of this paper is to examine and compare the views of mayors and comptrollers of Catalan municipalities on aspects related to the Spanish legislation on financial sustainability – its usefulness and necessity of maintaining, its impact on citizens’ welfare and alternative proposals. The setting is rather interesting as strict rules are imposed by a legislation criticized of mimicking European Commission policies, on well-performing municipalities, in light of the recent “independency” conflict.

Design/methodology/approach

The study uses insights from the public choice theory and the concept of accountability to draw a framework that could explain the perceptions of mayors and comptrollers. The views of the two groups are captured with the use of an online questionnaire.

Findings

The results indicate that while the application of strict rules has borne fruit, this trend is not sustainable in the long run and a careful reconsideration is required. Accordingly, both groups express concerns on citizens’ future welfare. It moreover appears that in this particular setting, mayors’ and comptrollers’ sense of accountability toward citizens exceed their personal interests.

Originality/value

This study provides empirical evidence on the impact of strict budget stability and sustainability rules on the long-term financial sustainability of local governments from the point of view of mayors and municipality comptrollers who are called to implement them.

Details

Meditari Accountancy Research, vol. 27 no. 3
Type: Research Article
ISSN: 2049-372X

Keywords

1 – 8 of 8