Cryptocurrency (Virtual Coins): Accounting Aspects and Tax Regulations

Lately, there have been many questions from specialists regarding the accountability of cryptocurrency. The lack of a legislation has allowed them to be interpreted as either intangible assets or stocks, even though Romania owns the biggest transaction platform in Eastern Europe (Bitcoin Romania). National Bank of Romania (NBR) acknowledges the lack of regulations and supervisions regarding cryptocurrency, regarding them as “speculative assets, extremely volatile and risky”. Simultaneously, this brings to attention the fact that these are not national coins nor currencies, and accepting them as a payment method isn’t, legally speaking, mandatory.

The non-financial reporting practices of Hungarian listed public interest entities considering the 2014/95/EU Directive

PurposeThis paper aims to investigate the non-financial reporting (NFR) practices of Hungarian listed public interest entities for 2016–2018 in terms of the required disclosure content based on the 2014/95/EU Directive (ED).Design/methodology/approach The authors apply content analysis methodology on Hungarian firms subject to mandatory reporting under the ED. The target variable in the multivariate model is the reporting quality (Qi) measured by a combined index.Findings The authors find that the ED had a moderate impact on Hungary's reporting quality because the overall disclosure of the sample only increased from low to medium level. The authors found that the value of intangible assets is a determinant of the reporting quality before and after the implementation of the ED. The findings support the effect of coercive isomorphism on Hungarian NFR practices.Research limitations/implications The limitation of the research is the number of firms examined. However, the authors covered the entire (non-bank) community of the Hungarian firms subject to the ED.Practical implications The authors suggest that reporting entities build upon the synergy between intellectual capital disclosure and NFR when elaborating their reporting strategies. The authors recommend the integration of ethical matters into corporate strategies and policies. Policymakers may consider the revision of the Hungarian regulations. The authors suggest academics embrace these topics in teaching.Originality/value To the best of the authors’ knowledge, this is the first study that investigates the impact of ED in the context of Hungary. The authors contribute to the existing literature by adding the results of the ridge regression model, highlighting the importance of intangible assets.

The Decisive Role of Intangible Assets in the Development of More Humane and Profitable Organizations in the Post-Pandemic Context

This chapter aims to describe the role of intangible assets (trust, love, and well-being) in the development of organizations. After a first approach in which the authors point out distortions of the traditional organizational management models and politics in Brazil, they propose solutions adopted by several companies in construing of humanized models. Based on these successful experiences, they highlight several indicators that demonstrate the profitability of these organizations and their differentials in tackling the post-pandemic economic and social crisis.

CONCEPT OF APPRAISAL INSTITUTIONS IN ASSESSING THE VALUATION OF INTANGIBLE ASSETS ON SMALL MEDIUM ENTERPRISES INTELLECTUAL PROPERTY AS OBJECT OF CREDIT GUARANTEE TO IMPROVE COMMUNITY'S CREATIVE ECONOMY

This study aims to analyze the factors that affect the effectiveness of Intangible Assets of Intellectual Property of Small and Medium Enterprises as objects of credit guarantees, and the concept of appraisal institutions in assessing the valuation of intangible assets of intellectual property of Small and Medium Enterprises as objects of credit guarantees in order to improve the creative economy of the community. The method used in this research is empirical juridical. The data used are primary data and secondary data. Data collection techniques data collection through library research and field studies (through questionnaires, focus group discussions, and interviews). The results of the study found that the five factors that affect the effectiveness of Intangible Assets intellectual property of Small and Medium Enterprises as objects of credit guarantees are legal factors, law enforcement, infrastructure, society and culture. The legal factor that affects is there is no special legal product for public appraisers of IPR Intangible assets. In the practice, IPR intangible assets have not been accepted by all banks as objects of basic guarantees but only as objects of additional guarantees. It is caused by no trust from the bank toward the value of IPR as basic guarantees, there have been no appraisal institutions, and there is not intellectual property rights market yet, that makes IPR is not commonly used by banks and SMEs as IP owners. The concept of appraisal institutions in assessing the valuation of intangible assets of intellectual property of small and medium businesses as objects of credit guarantees, in order to improve the creative economy of the community, is necessary to form an appraisal agency through the products of laws and regulations. These regulations, among others, regulate the intangible assets of IPR, the purposes and objectives of the IPR assessment, the requirements to become an IPR appraiser, the function and authority of IPR assessment, the valuation method used, and so on.

Methodology for testing assets for impairment during the coronavirus pandemic

Accounting for the impairment of assets is one of the difficult issues in the preparation of financial statements. However, despite the considerable attention of domestic and foreign accounting science to tangible and intangible assets, the methodological apparatus for analyzing the procedure of asset impairment remains insufficiently developed. Issues that take into account the specifics of the development of the economic environment for the functioning of companies, the state and degree of the accounting and financial reporting system have not been worked out, which requires a comprehensive study of methodological issues of checking assets for impairment. Assessing whether an asset has decreased in value can be highly subjective and impairment can appear as a failure of directors, prompting management to underestimate the impairment loss. An impairment loss could have a material effect on a company's financial statements if the assets are overvalued. The main difficulties lie in recognizing when it is necessary to conduct impairment tests, applying the value in use and determining the cash-generating unit (CGU). In some cases, the application of the standard may be difficult, and therefore companies may inadvertently include distorted data in the reporting. The article discusses the application of the rules for determining indicators of impairment during the coronavirus pandemic. Particular attention is paid to the consideration of the principles and procedures of IFRS IAS 36, which apply to the impairment of assets in the form of a right of use. Based on the results of this study, several recommendations have been compiled for accountants who need to conduct an impairment test.

Determinants of profitability in Chinese companies

Purpose This study is conducted to determine the factors that affect profitability in Chinese listed companies (by using financial ratios). Four independent variables liquidity, intangible assets, working capital and company leverage were empirically tested for their relationships with profitability besides two control variables which are firm size and company efficiency.Design/methodology/approach This study used secondary data extracted manually from the annual reports of non-financial Chinese listed companies on the Shanghai stock exchange (http://www.szse.cn/); the data set covers 100 companies during the period of 2017–2019, and a random selection method was used in order to achieve credibility and fairness as much as possible.Findings The findings show firm size, working capital and intangible assets have positive and significant relationships with profitability [return on assets (ROA) and earnings per share (EPS)]. Positive working capital is important to lower the cost of capital and improve companies' profitability. Intangible assets are also an essential source to improve profitability due to their low costs. In addition, the findings display a negative and strong relationship between liquidity and profitability, meaning that companies suffer low profit due to inefficient use of liquid items. Interestingly, leverage, which is measured by debt ratio and leverage ratio, shows mixed results; debt ratio shows a positive and strong association with ROA but not with EPS; while leverage ratio displays a strong but negative association with ROA but not with EPS. These results confirm the inverted U-shape relationship between leverage and profitability, which depends on the balance between benefit and cost of debt.Social implications Profitability is also important for employees and society where business organization provides sustainability and stability for both of them. Employees can then significantly contribute to achieve higher firm's profitability by efficiently using firm's resources.Originality/value This study differs than previous studies in number of aspects: First, this study focuses on financial ratios to explain profitability in Chinese companies. This study provides empirical results about the factors connected to profitability and help stakeholders to make their right decisions. Second, it examines the impact of four independent factors and two control variables that some of them are new in Chinese context such as intangible assets. Third previous studies focus on financial industry such as banks; however, this study focuses on non-financial industry.

Personal image: introduction to legal discourse

Problem setting. Intensive development of public relations, digitalization and commercialization of new spheres of life, growing popularity of the media sphere necessitates civil protection not only the privacy of individuals who are popular and recognizable, but also their right to publicity, which is directly related to lawful use of intangible benefits that belong to a person and shape his image. Analysis of recent researches and publications. Among the world's most prominent researchers of image as a social phenomenon are R. Burns, I. Hoffman, W. James, J. Rotter, L. Holl, and others. Domestic studies of image are represented by the works of Atamanskaya K.I., Barny N.V., Krynychna I.P., Lavrentiya A.S., Palekha Y.I., Panteleychuk I.V., Fedoriva T.V., Shcherbak N. V. and other representatives of various social sciences. The purpose of the article is to outline general scientific approaches to defining the concept of image, distinguishing it from related concepts and identifying promising areas of civil law research of image. Article’s main body. The concept of image is more often used in the information space, which leads to an increase in public demand for the legal definition of this concept and the settlement of issues related to the protection of the image of both individuals and legal entities. Image is the object of study of various branches of social science and studied by them in a variety of manifestations and aspects. Based on the analysis of a number of approaches to image definition by representatives of various sciences, it can be concluded that image considered as: (a) a communication tool that is a manipulative technology to influence public consciousness; (b) marketing tool to promote goods, works and services; (c) the external and psychological image of the public person through which society identifies him as an individual. Considering the image of an individual from the standpoint of a systematic approach, in particular a multilevel set of different components - personal intangible assets, we believe that reputation is an element of the image of an individual and should be considered as its structural component. From the standpoint of interdisciplinary research, the concepts of image and personal brand should be considered as synonymous, from a legal point of view, despite their similarity, they are formed by different objects of civil rights, although within the protection of the individual's right to protection and personal brand. Conclusions and prospects for the development. In view of the above, it can be concluded that the image of an individual is a complex, interdisciplinary concept. It is a holistic, stable image of a particular person that exists in society, and is characterized by the indivisibility of its external and internal characteristics, the corresponding personal, professional and social qualities. The constituent legal elements of the image are (a) personal intangible assets: the right to a name, the right to an image, the right to individuality, personal reputation; (b) objects of intellectual property rights: means of personalization: personal brand, trademark, trade name and others.