STRANDED ASSETS CONFERENCE

Previously Published Papers on "Stranded Assets Conference"

• Some Issues of Measurement of Impairment of Non-Financial Assets in the Public Sector

  Authors: Mariam Vardiashvili, Keywords: Non-cash-generating assets, cash-generating assets, recoverable value, recoverable service amount, value in use. DOI:10.5281/zenodo. Abstract: The economic value of the asset impairment process is quite large. Impairment reflects the reduction of future economic benefits or service potentials itemized in the asset. The assets owned by public sector entities bring economic benefits or are used for delivery of the free-of-charge services. Consequently, they are classified as cash-generating and non-cash-generating assets. IPSAS 21 - Impairment of non-cash-generating assets, and IPSAS 26 - Impairment of cash-generating assets, have been designed considering this specificity.  When measuring impairment of assets, it is important to select the relevant methods. For measurement of the impaired Non-Cash-Generating Assets, IPSAS 21 recommends three methods: Depreciated Replacement Cost Approach, Restoration Cost Approach, and  Service Units Approach. Impairment of Value in Use of Cash-Generating Assets (according to IPSAS 26) is measured by discounted value of the money sources to be received in future. Value in use of the cash-generating asserts (as per IPSAS 26) is measured by the discounted value of the money sources to be received in the future. The article provides classification of the assets in the public sector  as non-cash-generating assets and cash-generating assets and, deals also with the factors which should be considered when evaluating  impairment of assets. An essence of impairment of the non-financial assets and the methods of measurement thereof evaluation are formulated according to IPSAS 21 and IPSAS 26. The main emphasis is put on different methods of measurement of the value in use of the impaired Cash-Generating Assets and Non-Cash-Generation Assets and the methods of their selection. The traditional and the expected cash flow approaches for calculation of the discounted value are reviewed. The article also discusses the issues of recognition of impairment loss and its reflection in the financial reporting. The article concludes that despite a functional purpose of the impaired asset, whichever method is used for measuring the asset, presentation of realistic information regarding the value of the assets should be ensured in the financial reporting. In the theoretical development of the issue, the methods of scientific abstraction, analysis and synthesis were used. The research was carried out with a systemic approach. The research process uses international standards of accounting, theoretical researches and publications of Georgian and foreign scientists.

• An Empirical Analysis and Comparative Study of Liquidity Ratios and Asset-Liability Management of Banks Operating in India

  Authors: Amit Kumar Meena, Joydip Dhar, Keywords: ALM, Liquidity ratios, Rate sensitive Assets, Rate Sensitive Liabilities. DOI:10.5281/zenodo.1091076 Abstract: This paper is focused on the analysis and comparison of liquidity ratios and asset liability management practices in top three banks from public, private and foreign sector in India. The analysis is based upon the liquidity ratios calculation and the determination of maturity gap profiles for the banks under study. The paper also compares these banks maturity gap profiles with their corresponding group’s maturity gap profiles. This paper identifies the interest rate sensitivity of the balance sheet items of these banks to determine the gap between rate sensitive assets and rate sensitive liabilities. The results of this study suggest that overall banks in India have very good short term liquidity position and all banks are financing their short term liabilities by their long term assets.

• The Effect of Risky Assets to Operating Efficiencies for Listed Securities Firms in Taiwan Using the Data Envelopment Analysis

  Authors: Ying-Hsiu Chen, Pao-Peng Hsu, Mou-Yuan Liao, Shu-Min Hsieh, Keywords: Data Envelopment Analysis, Risky Assets, PureTechnical Efficiency, Scale Efficiency, Scale Economies. DOI:10.5281/zenodo.1081449 Abstract: This paper employs a the variable returns to scale DEA model to take account of risky assets and estimate the operating efficiencies for the 21 domestic listed securities firms during the period 2005-2009. Evidence is found that on average the brokerage securities firms- operating efficiencies are better than integrated securities firms. Evidence is also found that the technical inefficiency from inappropriate management constitutes the main source of the operating inefficiency for both types of securities firms. Moreover, the scale economies prevail in brokerage and integrated securities firms, in other words, which exhibit the characteristic of increasing returns to scale.

• Determinants of Investment in Fixed Assets in Electric Power Industry - An Econometric Analysis

  Authors: S. L. Tulasi Devi, R. N. Rao, Keywords: Determinants, Electric Power Industry, Fixed Assets, Econometric Analysis. DOI:10.5281/zenodo.1081415 Abstract: This paper focuses attention on specific aspects of entrepreneurial decisions relating to investment, both in the total fixed investments and plant & machinery (separately). Demand and financial factors, internal and external, are considered in the investment analysis. Finally the influence of determinants of fixed investment and investment plans are examined in Electric Power industry in India.

• Goodwill in the Current Greek Accounting Environment

  Authors: Efthymios Gravas, Anastasios Alexandridis, Antonios Stavropoulos, Keywords: Intangible Assets, Goodwill, International Accounting Standards, Greek Accounting System and Law DOI:10.5281/zenodo.1072740 Abstract: The growing interest in the issue of intangible assets not only in the scientific community but also in some professional bodies internationally can be explained by several points of view. From the business perspective, enterprises are increasingly motivated by external and internal forces to measure and proactively manage their intangibles. With respect to the issue of intangibles, goodwill has been debated in many countries throughout the world. Despite the numerous efforts and the existence of international accounting standards there is not yet a common accepted accounting treatment for goodwill. This study attempts on the one hand to impress the accounting treatment of goodwill internationally, on the other hand analyses the major subjects in relation to the accounting treatment of goodwill in Greece, since 2005, year where the international accounting standards have been in use for the Greek listed companies. The results indicate that the accounting treatment for the goodwill in Greece, despite the effort for accounting harmonization in Europe from 2005, sustains many differences especially for the no listed companies.

• Intellectual Capital and Competitive Advantage: An Analysis of the Biotechnology Industry

  Authors: Campisi Domenico, Costa Roberta, Keywords: Data Envelopment Analysis, Innovation, Intangible assets, Intellectual Capital, Malmquist Productivity Index. DOI:10.5281/zenodo.1333722 Abstract: Intellectual capital measurement is a central aspect of knowledge management. The measurement and the evaluation of intangible assets play a key role in allowing an effective management of these assets as sources of competitiveness. For these reasons, managers and practitioners need conceptual and analytical tools taking into account the unique characteristics and economic significance of Intellectual Capital. Following this lead, we propose an efficiency and productivity analysis of Intellectual Capital, as a determinant factor of the company competitive advantage. The analysis is carried out by means of Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI). These techniques identify Bests Practice companies that have accomplished competitive advantage implementing successful strategies of Intellectual Capital management, and offer to inefficient companies development paths by means of benchmarking. The proposed methodology is employed on the Biotechnology industry in the period 2007-2010.

• IAS 41 Implementation Challenges – The Case of Romania

  Authors: Liliana Feleagă, Niculae Feleagă, Vasile Răileanu, Keywords: Accounting Agricultural, Biological Assets, Fair value, IAS 41 DOI:10.5281/zenodo.1057361 Abstract: Although agriculture is an important part of the world economy, accounting in agriculture still has many shortcomings. The adoption of IAS 41 “Agriculture” has tried to improve this situation and increase the comparability of financial statements of entities in the agricultural sector. Although controversial, IAS 41 is the first step of a consistent transition to fair value assessment in the agricultural sector. The objective of our work is the analysis of IAS 41 and current accounting agricultural situation in Romania. Accounting regulations in Romania are in accordance with European directives and, in many respects, converged with IFRS referential. Provisions of IAS 41, however, are not reflected directly in Romanian regulations. With the increase of forest land transactions, it is expected that recognition and measurement of biological assets under IAS 41 to become a necessity.