Methodological Approaches to Assessing the Profitability of Assets

The paper examines approaches to assessing the profitability of assets. Based on the study and gen-eralization of scientific works, the definition of the concept of “profitability” is concretized. The ap-proaches to the assessment of profitability are in-vestigated. The relevance of the topic is due to the importance of analyzing the profitability of an enter-prise's assets to determine ways and reserves to improve the efficiency of financial and economic activities. The scientific novelty of this work con-sists in the study of theoretical and methodological approaches to the analysis of profitability, as well as the development of practical recommendations for organizing the analysis of the profitability of assets. It is based on the specification of profits by type and the introduction of indicators, such as the tax effect coefficient and the interest effect coefficient. The proposed algorithm makes it possible to make eco-nomically effective management decisions related to the development of a company in the context of dynamically changing factors of both the external and internal environment.

Cross-country Emission Tax Effect of Mergers

Recent studies show that mergers among polluting firms could affect the regulatory landscape of the industry and trigger a policy change. Using a two-country model, this study examines the effect of a merger size, as measured by the number of merging firms, on the optimal emission tax of another country. We show that, if pollution damages are not too large, a decline in the size of a merger reduces production and profits in that country, which affords a larger tax in the other country due to smaller profit-shifting concerns. On the other hand, if pollution damages are extremely large, a reduction in the size of a merger in one country reduces production in that country, but it also reduces production and emissions in the other country. Thus, the latter can induce a smaller emission tax. The change in the emission tax in both scenarios is consistent with cooperative outcomes.

Differences in Accounting and Tax Treatment of Intangible Assets in Self-developed Enterprises

<p>In order to respond positively to the national support for the innovation ability of small and medium-sized enterprises and reduce the operating burden of small and medium-sized enterprises, corresponding policy regulations has been made in the field of accounting and tax law for enterprises in dealing with intangible assets. This article takes the self-developed intangible assets as the starting point, probes into the differences in accounting and tax law treatment, explains the tax effect it brings about to enterprises based on the differences between the two, and puts forward suggestions of improvement on the unclear identification of expense and capitalization.</p>

A historical review of the rise of tax effect accounting as a financial reporting norm

This paper deals with one of the most long standing and contentious aspects of company financial reporting: tax effect accounting (TEA). The TEA “life cycle,” its transition from a novelty—emerging as what “ought” to happen due to the “issue” of a newly introduced and problematic corporate tax—to a taken for granted norm in contemporary accounting practice, is explored through a constructivist lens. This investigation reveals that a bundle of factors contributed to the norm’s legitimization, not simply the normative theory that TEA’s “normalising effect” improves the usefulness of financial reports by “correcting” misleading and “unreal” fluctuations in income tax. Once established, the profession can become “captive” by such history. This paper further illuminates TEA’s more recent re-orientation to the balance sheet approach as being consistent with a new emergent norm. This signals incongruence with being purported as a “more complete” reflection, given such a shift can be characterized as a secondary norm with a differentiated purpose.