Template-Type: ReDIF-Article 1.0 Author-Name: Daniel Acheampong Author-Name: Chrissann Ruehle Author-Name: Tanya S. Benford Title:DRIVERS OF UTILITY VIABILITY AND SUSTAINABILITY: DO NONFINANCIAL PERFORMANCE MEASURES MAKE A DIFFERENCE? Abstract: The study reviews the growth trend for investor-owned utilities (water and wastewater), adopts the National Regulatory Research Institute's financial viability ratios modified by Acheampong et al., and identifies four categories of nonfinancial performance instruments that drive utility abandonments and transfers. The study observed a downward trend in investor-owned utilities from the sample state (Florida). Prior research has concentrated on financial performance measures (Financial ratios) to determine the sustainability and viability of investor-owned utilities. The study concluded that nonfinancial performance measures are significant in determining investor-owned utility abandonments and transfers comparatively to financial performance measures; the drivers for utility transfers are different from utility abandonments, and each utility class should be treated with its own merits. Classification-JEL: M410 Keywords: Abandonments, Financial Performance Measures, Nonfinancial Performance Measures, Sustainability, Viability, Investor-Owned, Authorized Territory Journal: Accounting & Taxation Pages: 1-25 Volume: 15 Issue: 1 Year: 2023 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v15n1-2023/AT-V15N1-2023-1.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:15:y:2023:i:1:p:1-25 Template-Type: ReDIF-Article 1.0 Author-Name: Thomas Smith Author-Name: Adrian Valencia Author-Name: Ara Volkan Author-Name: Jordin Vorisek Title: FASB FIN 48 DISCLOSURES: EVIDENCE ON USER PERCEPTIONS Abstract: This study analyzes how financial statement users (users) interpret disclosures related to Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48). While past research has examined the decision usefulness of various aspects of FIN 48 balances reported in the financial statements, there are no studies that examine the impact that FIN 48 disclosures have on the financial decisions the users make. This study aims to fill this gap by conducting an experiment to find evidence that users find FIN 48 disclosures useful in evaluating the conduct of a firm’s management. Specifically, the study examines and finds that users regard FIN 48 disclosures as more of an indication that the management is enhancing the transparency of the financial statement information provided rather than using aggressive tax strategies. The finding of this study is important to standard setters as it suggests that users are interpreting the disclosures consistent with the intention of the FASB. This finding is also important to companies who may be hesitant to increase the robustness of FIN 48 disclosures as this study suggests that the outcome of such practices would likely improve the perception of the company in the users’ eyes Classification-JEL: M42 Keywords: Uncertain Tax Positions, Educated Non-Professional Investors, Information Usefulness, Financial Statement Transparency, Aggressive Tax Strategies Journal: Accounting & Taxation Pages: 27-41 Volume: 15 Issue: 1 Year: 2023 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v15n1-2023/AT-V15N1-2023-2.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:15:y:2023:i:1:p:27-41 Template-Type: ReDIF-Article 1.0 Author-Name: James N. Mohs Author-Name: Martin A. Goldberg Author-Name: Rajendra Shrestha Title: CURRENT TRENDS IN CORPORATE TAX INVERSIONS Abstract: The objective of this paper is to describe how changes in corporate tax rates affect the relocation of Corporations to lower tax jurisdictions. Historically, there was a direct correlation between high tax rates and the relocation of Corporations to lower tax jurisdictions. By further examining the relationships that tax rate cuts may have on future onshoring relocations and how changes in government tax policies will affect the relocation of multinational corporations to avoid or minimize tax liabilities. This paper extends the work of Mohs, Goldberg, Butler, and Heath (2016), which noted that there is a correlation between divergent tax rates. By analyzing existing tax legislation, Treasury regulations, and tax rates, this paper develops a framework for supporting strategic global tax efficiencies and initiatives. The conclusions, recommendations, and implications reached are generalizable and appropriate for developing best practices in tax efficiency and fiscal policy. Classification-JEL: G14, G38, H25 Keywords: Tax Inversion, Tax Rate Changes, Reorganizations, Onshoring, and Inversion Cases Journal: Accounting & Taxation Pages: 43-54 Volume:15 Issue: 1 Year: 2023 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v15n1-2023/AT-V15N1-2023-3.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:15:y:2023:i:1:p:43-54 Template-Type: ReDIF-Article 1.0 Author-Name: Sonia B. Dhaliwal Author-Name: Dua Sohail Author-Name: Keeley Hafer Author-Name: Sehar Azam Author-Name: Bryn Hafer Title: DIGITALIZATION OF TAX ADMINISTRATION: A REVIEW OF THE ORGANIZATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD) GUIDELINES Abstract: Tax administrations worldwide are being digitally transformed at a rapid pace. The increased capabilities of modern information technology to extract, process, and manage data is leading tax administrators to adopt new approaches in order to make taxation more efficient, effective, and transparent. This paper critically evaluates Tax Administration 3.0: The Digital Transformation of Tax Administration, a set of guidelines created by the Organisation for Economic Co-operation and Development (OECD). It reports on how leading countries have adopted each recommended building block in the OECD report, highlighting successes, challenges, and next steps on the road to digitalization for each country. The paper contains specific commentary related to Canada, which like the United States lags behind many other advanced economies in its implementation of the OECD recommendations. A detailed breakdown is performedpertaining to leading countries regarding the building blocks of Tax Administration 3.0, their journey towards its implementation, the challenges faced as well as the methods used to overcome them, and the next steps that will be taken towards further advancement. The OECD guidelines, although aspirational in nature, have been adopted and implemented by certain countries selectively, while others like Canada and the US lag. A key finding from this study is that no one country has yet been able to implement all the Tax Administration 3.0 guidelines. Classification-JEL:M41, M42, O33 Keywords: Digitalization, OECD, Tax Administration, Tax Administration 3.0, Electronic Filing, Digital Tax Administration Journal: Accounting & Taxation Pages: 55-81 Volume: 15 Issue: 1 Year: 2023 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v15n1-2023/AT-V15N1-2023-4.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:15:y:2023:i:1:p:55-81 Template-Type: ReDIF-Article 1.0 Author-Name: Arianna Spina Pinello Author-Name: Ernest Lee Puschaver Title: DOES CURRENT EXPECTED CREDIT LOSS ACCOUNTING REFLECT A BEST ESTIMATE? TIME SERIES EVIDENCE FROM CREDIT LOSS REPORTING Abstract: The current expected credit losses (CECL) accounting model became effective January 1, 2020. This paper examines the relationship between actual loan losses, allowances for credit losses (ACLs), and provisions for credit losses (PCLs) reported by three of the largest U.S. banks for the three years pre-CECL-adoption and the three years post-CECL-adoption. Data was obtained from the banks’ filings with the Securities & Exchange Commission on Forms 10-K and 10-Q, including disclosure commentaries by management, as well as earnings releases and transcripts from earnings conference calls with analysts. Our results indicate that CECL has generated faster and greater responses to the macroeconomic environment. However, there has also arisen greater complexity and apparent instances of management control over the estimatingprocess through model input assumptions and the weighting of various forecast scenarios, such that at times, the ACL levels being established appear inconsistent with the related management disclosures about economic outlook. Further, by utilizing analytics with different scenarios and assigning variable weightingof importance, a resulting ACL may not represent management’s “best estimate” but instead may reflect “contingency” considerations for relatively improbable adverse economic developments. Classification-JEL:M41 Keywords: CECL, Credit Losses, PCL, ACL, Provision for Credit Losses, Allowance for Credit Losses Journal: Accounting & Taxation Pages: 83-103 Volume: 15 Issue: 1 Year: 2023 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v15n1-2023/AT-V15N1-2023-5.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:15:y:2023:i:1:p:83-103 Template-Type: ReDIF-Article 1.0 Author-Name: Sherry Fang Li Title: THE INCIDENCE OF EXPECTATIONS MANAGEMENT IN THE POST-REGULATION FAIR DISCLOSURE PERIOD Abstract: This paper investigates the incidence of expectations management in the post-Regulation Fair Disclosure period. Using uniquely hand-collected data, I present direct evidence that the expectations management game is still played in the new regulatory environment. Management has switched to issuing pessimistic public guidance (instead of relying on private communications as in the pre-Regulation Fair Disclosure period) to dampen analysts’ expectations to a beatable level. In addition, they use both quantitative and qualitative, both earnings-related and nonearnings-related disclosures to influence analysts’ forecasts. However, I find that expectations management is decreasing during my sample period (2001-2004). Classification-JEL:M41, M48 Keywords: Expectations Management, Earnings Guidance, Managerial Guidance, Regulation FD, Analysts’ Expectations Journal: Accounting & Taxation Pages: 105-116 Volume: 15 Issue: 1 Year: 2023 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v15n1-2023/AT-V15N1-2023-6.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:15:y:2023:i:1:p105-116: Template-Type: ReDIF-Article 1.0 Author-Name: Margaret O’Reilly-Allen Author-Name: Maria H. Sanchez Title: WE’VE BEEN CYBER-ATTACKED: A CASE STUDY ON CYBER-SECURITY Abstract: Cyber-security has grown exponentially in importance in the past twenty years. This paper documents a case study designed to teach business and accounting students the importance of having an effective cybersecurity plan as well as the roles of the internal and external auditors in cybersecurity. The case describes a real world cyberattack and how the company responded. The case is appropriate for undergraduate as well as graduate classes. Classification-JEL: M40, M42 Keywords: Cyber-Security, Cyber-Attack, Internal Controls, Internal Auditors, External Auditors Journal: Accounting & Taxation Pages: 117-127 Volume: 15 Issue: 1 Year: 2023 File-URL: http://www.theibfr2.com/RePEc/ibf/acttax/at-v15n1-2023/AT-V15N1-2023-7.pdf File-Format: Application/pdf Handle: RePEc:ibf:acttax:v:15:y:2023:i:1:p:117-127