Accounting for Lease Renewal Options: The Informational Effects of Unit of Account Choices

2011 ◽  
Vol 87 (1) ◽  
pp. 173-197 ◽  
Author(s):  
Jeffrey W. Hales ◽  
Shankar Venkataraman ◽  
T. Jeffrey Wilks
Keyword(s):  
Balance Sheet ◽  
Data Availability ◽  
Negative Effects ◽  
Accounting Standard ◽  
Trade Offs ◽  
The Face ◽  
Negative Effect ◽  
Representational Faithfulness ◽  
One Year ◽  
Lease Accounting

ABSTRACT This study examines the informational effects of unit of account choices in the context of a proposed standard on lease accounting. Standard-setters have tentatively decided that leases in excess of one year should be recognized on a lessee's balance sheet, including optional lease periods, even though the lessee can choose not to renew the lease. We argue that this approach lacks representational faithfulness and creates an informational problem for users. Using an experiment, we show that the proposed treatment of renewal options has a negative effect on lenders' willingness to lend to a firm with renewal options. However, we also show that disaggregating the capitalized optional renewal periods from the fixed-term lease obligation mitigates some of the negative effects of the proposed approach, particularly when disaggregation occurs on the face of the financial statements. These results should be of interest to standard-setters as they deliberate changes to lease accounting and when considering the trade-offs that can arise with expansive unit of account choices. Data Availability: The experimental data are available for purposes of replication. Please contact the authors..

scholarly journals People’s attitudes towards deadwood in forest: evidence from the Ukrainian Carpathians

2019 ◽  
Vol 65 (No. 5) ◽  
pp. 171-182 ◽  
Author(s):  
Oksana Pelyukh ◽  
Alessandro Paletto ◽  
Lyudmyla Zahvoyska
Keyword(s):  
Local Community ◽  
Sustainable Forest Management ◽  
Managed Forests ◽  
Negative Effects ◽  
Face To Face ◽  
The Face ◽  
Negative Effect ◽  
Intensively Managed ◽  
People’S Attitudes ◽  
Positive Effect

People’s attitudes towards forest stand characteristics including deadwood are becoming increasingly relevant in sustainable forest management. The aim of this study is to investigate people’s attitudes towards deadwood in forest. The study was carried out in the Rakhiv region (Ukraine) characterized by high importance of forest resources for the local community and economy. People’s opinions were collected through the face-to-face administration of a questionnaire to 308 respondents. The survey investigated three aspects: importance of deadwood in forest; people’s perceptions of positive and negative effects of deadwood in forest; effects of presence and amount of deadwood in different types of forest on people’s aesthetical preferences. The results show that the majority of respondents consider deadwood as an important component of the forest, but generally they prefer intensively managed forests without deadwood. According to the respondents’ opinions, the most important positive effect of deadwood is a contribution to stand dynamics, while the most important negative effect is an increasing risk of insects and diseases.

scholarly journals DAKWAH YANG BERLITERASI MEDIA: UPAYA DERADIKALISASI DI LINGKUP KAMPUS IAIN KENDARI

2018 ◽  
Vol 2 (2) ◽  
pp. 119-128
Author(s):  
Sri Hadijah Arnus
Keyword(s):  
Social Media ◽  
New Media ◽  
Media Literacy ◽  
Positive Impact ◽  
Virtual Community ◽  
Negative Effects ◽  
The Face ◽  
Negative Effect ◽  
The Media ◽  
The Difference

The new media era is a time when every individual has a virtual community other than their community in the real world. The high interactivity of social media and its decentralized nature allows for the enormous flow of information that inflicts social media users. This of course can have a positive impact, but it can also bring a negative effect. To counteract the negative effects of social media, media literacy is needed, in this case for students. Media literacy is done to form a filter on students, in the face of negative exposure in social media that can give effect to the formation of a stereotype of a person against a particular ethnic or religious groups, as well as information charged with radicalism. It is deemed necessary to see IAIN Kendari students who have very diverse ethnic backgrounds and different organizational backgrounds of different groups, thus affecting the difference of individuals in making decisions or in dealing with various forms of information from social media. Media literacy is done through the way of da'wah is to provide understanding to the students how the media to construct a message that is combined with messages that contain knowledge about Islam. This paper will describe the media literacy model for IAIN Kendari students with the form of da'wah which aims to counteract the understanding of radicalism obtained through social media, for IAIN students Kendari.

Financial Engineering and the Arms Race Between Accounting Standard Setters and Preparers

2014 ◽  
Vol 29 (2) ◽  
pp. 265-295 ◽  
Author(s):  
Ronald A. Dye ◽  
Jonathan C. Glover ◽  
Shyam Sunder
Keyword(s):  
Financial Reporting ◽  
Financial Engineering ◽  
General Theorem ◽  
Accounting Standards ◽  
Financial Statements ◽  
Goal Congruence ◽  
Accounting Standard ◽  
Financial Reports ◽  
The Face ◽  
Representational Faithfulness

SYNOPSIS This essay analyzes some problems that accounting standard setters confront in erecting barriers to managers bent on boosting their firms' financial reports through financial engineering (FE) activities. It also poses some unsolved research questions regarding interactions between preparers and standard setters. It starts by discussing the history of lease accounting to illustrate the institutional disadvantage of standard setters relative to preparers in their speeds of response. Then, the essay presents a general theorem that shows that, independent of how accounting standards are written, it is impossible to eliminate all FE efforts of preparers. It also discusses the desirability of choosing accounting standards on the basis of the FE efforts the standards induce preparers to engage in. Then, the essay turns to accounting boards' concepts statements; it points out that no concept statement recognizes the general lack of goal congruence between preparers and standard setters in their desires to produce informative financial statements. We also point out the relative lack of concern in recent concept statements for the representational faithfulness of the financial reporting of transactions. The essay asserts that these oversights may be responsible, in part, for standard setters promulgating recent standards that result in difficult-to-audit financial reports. The essay also discusses factors other than accounting standards that contribute to FE, including the high-powered incentives of managers, the limited disclosures and/or information sources outside the face of firms' financial statements about a firm's FE efforts, firms' principal sources of financing, the increasing complexity of transactions, the difficulties in auditing certain transactions, and the roles of the courts and culture. The essay ends by proposing some other recommendations on how standards can be written to reduce FE. JEL Classifications: M31.

scholarly journals Systemic Risk Contagion in Reconstructed Financial Credit Network within Banking and Firm Sectors on DebtRank Based Model

2020 ◽  
Vol 2020 ◽  
pp. 1-14
Author(s):  
Yuetang (Peter) Bian ◽  
Yu Wang ◽  
Lu Xu
Keyword(s):  
Systemic Risk ◽  
Computational Simulation ◽  
Balance Sheet ◽  
Nonlinear Behavior ◽  
Influential Factors ◽  
Counterparty Risk ◽  
Negative Effects ◽  
Reconstructed Network ◽  
Negative Effect ◽  
Credit Network

This paper is dedicated to building a multilayer financial network within banking sectors and firm sectors (nonbanking) on the balance sheet of two types of agents and to assessing systemic risk contagion in the reconstructed network. Two propagation channels due to interbank credit and counterparty risk via banks’ loans to firms are comprehensively taken into account in systemic risk contagion assessment, which is based on the DebtRank model by analyzing the relative loss of each bank’s equity and the vulnerability of the network. The computational simulation on how systemic risk contagious process evolves has been conducted, where the possible influential factors of network structure, agent’s initial risk status, external shock ratio, liquidity flow rate, and different layers of the network are considered. The findings show that the reconstructed network is absolutely vulnerable under the assumed market circumstance without any bailouts and the risk contagion process shows nonlinear behavior. Specifically, when the average degree of the network and the external shock ratio increases, the risk contagion speed becomes relatively high and the resulting negative effects on the network are more intense. Besides, risks originating from the failed firms in bank-firm layer should place more negative effect on the financial system than that only happening in interbank market. Different liquidity rates in financial market could lead to obvious discrepancy of the risk contagion speed and the extent of asset loss. Additionally, the two layers of the network have diverse influences on risk contagious process resulting in totally different banks’ status in each layer.

Density effects and snake predation: prey limitation and reduced growth rate of adders at high density of conspecifics

1996 ◽  
Vol 74 (6) ◽  
pp. 1000-1007 ◽  
Author(s):  
Lars Erik Lindell ◽  
Anders Forsman
Keyword(s):  
Growth Rate ◽  
Negative Relationship ◽  
Negative Effects ◽  
Vipera Berus ◽  
Resource Limited ◽  
Negative Effect ◽  
The Difference ◽  
Prey Limitation ◽  
One Year ◽  
The Baltic

To test the hypothesis that snakes limit the population growth of their prey, we measured the density of adders (Vipera berus) and field voles (Microtus agrestis) over several years on six small islands (1–12 ha) in the Baltic Sea. In both 1989 and 1990 we found a negative relationship (significant in one year) between the density of adders and voles across islands, indicating that on islands with high densities the adders exert such a high predation pressure that the voles become predator limited. In 1991 and 1993 we experimentally manipulated adder densities to rule out potential island effects. A comparison between transferred and resident snakes revealed no negative effects of being transferred to an unfamiliar environment. Furthermore, vole density decreased more on islands where we had experimentally increased adder density compared with islands with reduced densities and unmanipulated controls, but the difference was not significant. To test the hypothesis that adders at high densities of conspecifics decrease the vole population so much as to become resource limited, we calculated mean annual relative growth rate (a size-independent measure of growth rate) of adders on all islands during 1989 through 1993. In all 5 years we found a negative relationship across islands between adder density and growth rate of adders. Combining all years there was a significant negative effect of adder density, suggesting that on islands with high densities the adders suffer a reduction in growth rates that was due to intense exploitative competition.

scholarly journals Examining the trade-offs between human fertility and longevity over three centuries using crowdsourced genealogy data

PLoS ONE ◽  
2021 ◽  
Vol 16 (8) ◽  
pp. e0255528
Author(s):  
Chen-Hao Hsu ◽  
Oliver Posegga ◽  
Kai Fischbach ◽  
Henriette Engelhardt
Keyword(s):  
Empirical Studies ◽  
Individual Characteristics ◽  
Negative Effects ◽  
Trade Offs ◽  
Human Fertility ◽  
Geographical Regions ◽  
Negative Effect ◽  
The Relationship ◽  
Historical Periods

The evolution theory of ageing predicts that reproduction comes with long-term costs of survival. However, empirical studies in human species report mixed findings of the relationship between fertility and longevity, which varies by populations, time periods, and individual characteristics. One explanation underscores that changes in survival conditions over historical periods can moderate the negative effect of human fertility on longevity. This study investigates the fertility-longevity relationship in Europe during a period of rapid modernisation (seventeenth to twentieth centuries) and emphasises the dynamics across generations. Using a crowdsourced genealogy dataset from the FamiLinx project, our sample consists of 81,924 women and 103,642 men born between 1601 and 1910 across 16 European countries. Results from multilevel analyses show that higher fertility has a significantly negative effect on longevity. For both women and men, the negative effects are stronger among the older cohorts and have reduced over time. Moreover, we find similar trends in the dynamic associations between fertility and longevity across four geographical regions in Europe. Findings and limitations of this study call for further investigations into the historical dynamics of multiple mechanisms behind the human evolution of ageing.

scholarly journals DAKWAH YANG BERLITERASI MEDIA: UPAYA DERADIKALISASI DI LINGKUP KAMPUS IAIN KENDARI

2017 ◽  
Vol 2 (2) ◽  
pp. 119
Author(s):  
Sri Hadijah Arnus
Keyword(s):  
Social Media ◽  
New Media ◽  
Media Literacy ◽  
Positive Impact ◽  
Virtual Community ◽  
Negative Effects ◽  
The Face ◽  
Negative Effect ◽  
The Media ◽  
The Difference

The new media era is a time when every individual has a virtual community other than their community in the real world. The high interactivity of social media and its decentralized nature allows for the enormous flow of information that inflicts social media users. This of course can have a positive impact, but it can also bring a negative effect. To counteract the negative effects of social media, media literacy is needed, in this case for students. Media literacy is done to form a filter on students, in the face of negative exposure in social media that can give effect to the formation of a stereotype of a person against a particular ethnic or religious groups, as well as information charged with radicalism. It is deemed necessary to see IAIN Kendari students who have very diverse ethnic backgrounds and different organizational backgrounds of different groups, thus affecting the difference of individuals in making decisions or in dealing with various forms of information from social media. Media literacy is done through the way of da'wah is to provide understanding to the students how the media to construct a message that is combined with messages that contain knowledge about Islam. This paper will describe the media literacy model for IAIN Kendari students with the form of da'wah which aims to counteract the understanding of radicalism obtained through social media, for IAIN students Kendari.

scholarly journals Perceived effects of farm tractors in four African countries, highlighted by participatory impact diagrams

2020 ◽  
Vol 40 (6) ◽  
Author(s):  
Thomas Daum ◽  
Ygué Patrice Adegbola ◽  
Geoffrey Kamau ◽  
Alpha Oumar Kergna ◽  
Christogonus Daudu ◽  
...  
Keyword(s):  
Gender Inequalities ◽  
Negative Effects ◽  
African Countries ◽  
Agricultural Mechanization ◽  
Trade Offs ◽  
The Face ◽  
Perceived Effects ◽  
And Gender ◽  
African Agriculture ◽  
Socioeconomic Consequences

AbstractAgricultural mechanization is on the rise in Africa. A widespread replacement of manual labor and animal traction will change the face of African agriculture. Despite this potentially transformative role, only a few studies have looked at the effects of mechanization empirically, mostly focusing on yields and labor alone. This is the first paper that explores perceived agronomic, environmental, and socioeconomic effects together, thereby revealing linkages and trade-offs, some of which have been hitherto unknown. Data were collected using a novel data collection method called “participatory impact diagrams” in four countries: Benin, Kenya, Nigeria, and Mali. In 129 gendered focus group discussions, 1330 respondents from 87 villages shared their perceptions on the positive and negative effects of agricultural mechanization, and developed causal impact chains. The results suggest that mechanization is likely to have more far-reaching agronomic, environmental, and socioeconomic consequences than commonly assumed. Most perceived effects were positive, suggesting that mechanization can help to reduce poverty and enhance food security but other effects were negative such as deforestation, soil erosion, land-use conflicts, and gender inequalities. Accompanying research and policy efforts, which reflect variations in local agro-ecological and socioeconomic conditions, are needed to ensure that mechanization contributes to an African agricultural transformation that is sustainable from a social, economic, and environmental perspective.

Judgments of auditors on “principles” versus “guidance” in lease accounting standard

2016 ◽  
Vol 24 (3) ◽  
pp. 362-386 ◽  
Author(s):  
Noriyuki Tsunogaya ◽  
Satoshi Sugahara ◽  
Parmod Chand
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Final Decision ◽  
Accounting Standard ◽  
Content Type ◽  
Financial Condition ◽  
Negative Effect ◽  
Lease Accounting ◽  
Positive Effect ◽  
Quasi Experiment

Purpose The purpose of this paper is to examine the effects of a principles-based accounting standard with guidance (principles-with-guidance approach), stringency (conservativeness) of numerical thresholds, and incentives (high or low debt-equity ratio environment) on the judgments of Japanese auditors in a lease accounting setting. Design/methodology/approach To reflect Japanese auditors’ judgmental features, this study adopts a quasi-experiment that uses both manipulation for different environments (i.e. stable or critical financial condition) and perceptions about the importance of “principles” and “guidance” in different types of lease accounting standards (i.e. substantially all, approximately 90 and 88 percent). Findings “Principle” (substantially all) has a positive effect, while “guidance” (approximately 90 percent) has a negative effect on encouraging Japanese auditors to capitalize lease transactions. “More stringent guidance” (approximately 88 percent) has a positive effect only when clients are in critical financial conditions. Other findings indicate that judgments of Japanese auditors are strongly influenced by their colleagues’ perceived judgments. Originality/value This is the first quasi-experiment to examine Japanese auditors’ professional judgments using a lease accounting setting. To find out whether Japanese auditors interpret and apply International Financial Reporting Standards (IFRS) in the similar manner as their counterparts in other countries will be important when Japanese policymakers make their final decision regarding the adoption of IFRS. The discussion and findings also contribute to the International Accounting Standards Board (IASB) with regard to enhancing global convergence of financial reporting.

Demand for Agency MBS in the Era of the Fed Balance Sheet Unwind

2019 ◽  
Keyword(s):  
Federal Reserve ◽  
Balance Sheet ◽  
2008 Financial Crisis ◽  
The Past ◽  
Mortgage Backed Securities ◽  
The Face ◽  
Declining Demand ◽  
The 2008 Financial Crisis ◽  
The Government ◽  
One Year

Since the Federal Reserve signaled plans to gradually pare down its holdings of Treasuries and agency debt and mortgage-backed securities (MBS) accumulated in the aftermath of the 2008 financial crisis, investors have expressed concern over how the removal of the Fed as an active buyer would impact the government-sponsored enterprise MBS market. In addition, expectations for increased MBS issuance fueled by a strong labor market have added to worries about rising supply in the face of declining demand. It has been more than one year since the Fed began to shrink its balance sheet. This article examines how market conditions over the past year have affected the speed of Fed balance sheet normalization relative to expectations, as well as ongoing developments in the agency MBS market, and finds that feared market imbalances have largely failed to materialize.

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