A conceptual framework of accounting policy choice under SSAP 20

Purpose - To provide a framework of accounting policy choice associated with the timing of adoption of the UK Statement of Standard Accounting Practice (SSAP) No. 20, "Foreign Currency Translation". The conceptual framework describes the accounting policy choices that firms face in a setting that is influenced by: their financial characteristics; the flexible foreign exchange rates; and the stock market response to accounting decisions. Design/methodology/approach - Following the positive accounting theory context, this paper puts into a framework the motives and choices of UK firms with regard to the adoption or deferment of the adoption of SSAP 20. The paper utilises the theoretical and empirical findings of previous studies to form and substantiate the conceptual framework. Given the UK foreign exchange setting, the framework identifies the initial stage: lack of regulation and flexibility in financial reporting; the intermediate stage: accounting policy choice; and the final stage: accounting choice and policy review. Findings - There are situations where accounting regulation contrasts with the needs and business objectives of firms and vice-versa. Thus, firms may delay the adoption up to the point where the increase in political costs can just be tolerated. Overall, the study infers that firms might have chosen to defer the adoption of SSAP 20 until they reach a certain corporate goal, or the adverse impact (if any) of the accounting change on firms' financial numbers is minimal. Thus, the determination of the timing of the adoption is a matter which is subject to the objectives of the managers in association with the market and economic conditions. The paper suggests that the flexibility in financial reporting, which may enhance the scope for income-smoothing, can be mitigated by the appropriate standardisation of accounting practice. Research limitations/implications - First, the study encompassed a period when firms and investors were less sophisticated users of financial information. Second, it is difficult to ascertain the decisions that firms would have taken, had the pound appreciated over the period of adoption and had the firms incurred translation losses rather than translation gains. Originality/value - This paper is useful to accounting standards setters, professional accountants, academics and investors. The study can give the accounting standard-setting bodies useful information when they prepare a change in the accounting regulation or set an appropriate date for the implementation of an accounting standard. The paper provides significant insight about the behaviour of firms and the associated impacts of financial markets and regulation on the decision-making process of firms. The framework aims to assist the market and other authorities to reduce information asymmetry and to reinforce the efficiency of the market. © Emerald Group Publishing Limited.

Food colours:a study of the effects of regulation

In the 1960s the benefits of government regulation of technology were believed to outweigh any costs. But recent studies have claimed that regulation has negative effects on innovation, health and consumer choice. This case study on food colours examines such claims. EFFECTS ON HEALTH were measured by allocating a hazard rating to each colour. The negative list of 1925 removed three harmful colours which were rapidly replaced, so the benefits were short-lived. Had a proposed ban been adopted in the 1860s it would have prevented many years exposure to hazardous mineral colours. The positive list of 1957 reduced the proportion of harmful coal tar dyes from 54% of the total to 20%. Regulations brought a greater reduction in hazard levels than voluntary trade action. Delays in the introduction of a positive list created a significant hazard burden. EFFECTS ON INNOVATION were assessed from patents and discovery dates. Until the 1950s food colours were adopted from textile colours. The major period of innovation for coal tar colours was between 1856 and 1910, finishing well before regulations were made in 1957, so regulations cannot be blamed for the decline. Regulations appear to have spurred the development of at least one new coal tar dye, and many new plant colours, creating a new sector of the dye industry. EFFECTS ON CONSUMER CHOICE were assessed by case studies. Coloured milk, for example, was banned despite its popularity. Regulations have restricted choice, but have removed from the market foods that were nutritionally impoverished and poor value for money. Compositional regulations provided health protection because they reduced total exposure to colours from certain staple foods. Restricting colours to a smaller range of foods would be an effective way of coping with problems of quality and imperfect toxicological knowledge today.

Retail competition and consumer choice:contextualising the “food deserts” debate

The “food deserts” debate can be enriched by setting the particular circumstances of food deserts – areas of very limited consumer choice – within a wider context of changing retail provision in other areas. This paper’s combined focus on retail competition and consumer choice shifts the emphasis from changing patterns of retail provision towards a more qualitative understanding of how “choice” is actually experienced by consumers at the local level “on the ground”. This argument has critical implications for current policy debates where the emphasis on monopolies and mergers at the national level needs to be brought together with the planning and regulation of retail provision at the local, neighbourhood level.

Az átalakuló globális pénzügyi szabályozórendszer kérdései = Dilemmas of the changing global financial regulation system

Erősődő igény van a jelenlegi sokoldalú nemzetközi felügyeleti rendszer reformjára úgy, hogy az a nemzeti gazdaságpolitikák nemzetközi hatásait is figyelembe vegye. Ehhez át kell reformálni a jelenlegi globális pénzügyi szabályozási rendszert, de ki kell alakítani a nemzeti gazdaságpolitikák egymásra hatásának koordinációját is. Ide tartozik a globális külső sokkok csillapítására szolgáló anti-ciklikus finanszírozás, a nemzetközi adózási együttműködés fokozása, a nemzetközi adósságfinanszírozás tökéletesítése, vagy a globális fizetésieszköz-tartalékok és a fizetési rendszer viszonya. Ez utóbbi területen az SDR kiterjedtebb használatának feltételeit kell kimunkálni. A jelenlegi globális intézmények – WTO, Nemzetközi Valutaalap, Világbank – alapos megújítása elkerülhetetlen. A globális gazdasági koordináció intézményi kereteinek kidolgozása viszont még várat magára. A G20-ak csoportja – bár fontos reformokat kezdeményezett –, nem tekinthető a világgazdasági egyensúlytalanságok megoldása letéteményesének. A cél csak olyan globális intézményi struktúra lehet, amely egyaránt képes a világ nagy számú gazdaságai közötti koordinációs feladatok megoldására, s a döntések végrehajtásának kikényszerítésére. / === / The present multilateral international surveillance system needs to be reformed with an eye on international repercussions of national economic policies. The present global financial architecture, the coordination of interplays of national economic policies must be modified. An anti-cyclical financing capable of absorbing global external shocks, strengthening of international tax cooperation, improving international debt financing or the relations between global financial reserves and the global payment system might be part and parcel of this process. A more extended use of SDR could be worked out. Reforms of the present global institutions – the WTO, the IMF, the World Bank – cannot be avoided any further. Institutional frameworks of global economic coordination mechanism have still not been worked out. The Group of 20 (G-20) cannot be seen as the sole player in fighting world economic disequlibria. A global institutional system is envisaged, which is able to implement economic coordination among national economic units and to enforce the implementation of decisions taken. At present there is no global institution dealing with coherence and consistency of global issues. Reforming present institutions and/or designing new ones are possible options. The basis for such an international coordination must involve general acceptance of principles, transparent implementation, and enforcement of decisions taken.

Magánnyugdíj-járadékok közötti választás (Choice amongst Hungarian pension funds' annuities )

Ebben a cikkben a magánnyugdíj-járadékok közötti választást vizsgálom. Arra vagyok kíváncsi, hogy a racionális döntéshozó hogyan választ a lehetséges járadékokból. A döntéshozó a várható hasznosságátmaximalizálja. A cikkben megvizsgálom azt az esetet is, ha a döntéshozó számára fontos, hogy gondoskodjék az utódairól, és megvizsgálom a házaspárok optimális döntését is. Felhívom a figyelmet, hogy a nemek közötti differenciálás tilalmának az lehet a következménye, hogy a döntéshozók olyan járadékokat választanak, amely a szolgáltatónak összességében veszteséget okoz. Bemutatom, hogy a halasztott járadékkal kombinált ütemezett pénzkivonás a vizsgált környezetben nem rosszabb, mint a többi lehet}oség, a döntéshozó viszont ebben az esetben a befektetési lehet}oségeket maga választhatja meg. _____________ This paper investigates the decision-maker's choice amongst the pension fund's life annuities in Hungary. Hungarian pension funds have not started providing annuities yet, and the environment requires further regulation. The most significant problems is that the annuity providers must not differentiate between sexes. Pension fund members can choose among different types of life annuities (e.g. they can choose guarantee period or joint life annutity), and the member's choice may cause loss to the annuity provider in general. Since differentation between sexes is not allowed member's opportunities may shrink (e.g. they can not choose guarantee period or joint life annuity).

Regulation and Social Media: Speed Bumps or the Code 2.0

“Governments of the Industrial World, you weary giants of flesh and steel, I come from Cyberspace, the new home of Mind. On behalf of the future, I ask you of the past to leave us alone. You are not welcome among us. You have no sovereignty where we gather (…)” (Barlow 1996). Barlow’s declaration of independence of February 8 1996 was an expression of the libertarian approaches that have run through the Internet since its inception, and is the root of the misapprehension that the internet is somehow unregulated by state sovereignty. But why was it published that day? What happened?

European route choice determinants

Different charging zones are found within European airspace. This allows airlines to select different routes between origin and destination that have different lengths and en-route charges. There is a trade- off between the shortest available route and other routes that might have different charges. This paper analyses the routes submitted by airlines to be operated on a given day and compares the associated costs of operating those routes with the shortest available at the time, in terms of en-route charges and fuel consumption. The flights are characterised by different variables with the idea of identifying a behaviour or pattern based on the airline or flight characteristics. Results show that in some areas of the European airspace there might be an incentive to select a longer route, leading to both a lower charge and a lower total cost. However, more variables need to be considered and other techniques used, such as factor analysis, to be able to identify the behaviour within an airline category.

An implementation architecture for scenario-based simulations

The past years have witnessed an increased use of applied games for developing and evaluating communication skills. These skills benefit from in-terpersonal interactions. Providing feedback to students practicing communica-tion skills is difficult in a traditional class setting with one teacher and many students. This logistic challenge may be partly overcome by providing training using a simulation in which a student practices with communication scenarios. A scenario is a description of a series of interactions, where at each step the player is faced with a choice. We have developed a scenario editor that enables teachers to develop scenarios for practicing communication skills. A teacher can develop a scenario without knowledge of the implementation. This paper presents the implementation architecture for such a scenario-based simulation.

An alternative benchmarking approach for electricity utility regulation using maximum entropy

The main purpose of this study is to present an alternative benchmarking approach that can be used by national regulators of utilities. It is widely known that the lack of sizeable data sets limits the choice of the benchmarking method and the specification of the model to set price controls within incentive-based regulation. Ill-posed frontier models are the problem that some national regulators have been facing. Maximum entropy estimators are useful in the estimation of such ill-posed models, in particular in models exhibiting small sample sizes, collinearity and non-normal errors, as well as in models where the number of parameters to be estimated exceeds the number of observations available. The empirical study involves a sample data used by the Portuguese regulator of the electricity sector to set the parameters for the electricity distribution companies in the regulatory period of 2012-2014. DEA and maximum entropy methods are applied and the efficiency results are compared.

Synthetic regulation of eukaryotic gene expression by noncoding RNA

Synthetic biological systems promise to combine the spectacular diversity of biological functionality with engineering principles to design new life to address many pressing needs. As these engineered systems advance in sophistication, there is ever-greater need for customizable, situation-specific expression of desired genes. However, existing gene control platforms are generally not modular, or do not display performance requirements required for robust phenotypic responses to input signals. This work expands the capabilities of eukaryotic gene control in two important directions.

For development of greater modularity, we extend the use of synthetic self-cleaving ribozyme switches to detect changes in input protein levels and convey that information into programmed gene expression in eukaryotic cells. We demonstrate both up- and down-regulation of levels of an output transgene by more than 4-fold in response to rising input protein levels, with maximal output gene expression approaching the highest levels observed in yeast. In vitro experiments demonstrate protein-dependent ribozyme activity modulation. We further demonstrate the platform in mammalian cells. Our switch devices do not depend on special input protein activity, and can be tailored to respond to any input protein to which a suitable RNA aptamer can be developed. This platform can potentially be employed to regulate the expression of any transgene or any endogenous gene by 3’ UTR replacement, allowing for more complex cell state-specific reprogramming.

We also address an important concern with ribozyme switches, and riboswitch performance in general, their dynamic range. While riboswitches have generally allowed for versatile and modular regulation, so far their dynamic ranges of output gene modulation have been modest, generally at most 10-fold. We address this shortcoming by developing a modular genetic amplifier for near-digital control of eukaryotic gene expression. We combine ribozyme switch-mediated regulation of a synthetic TF with TF-mediated regulation of an output gene. The amplifier platform allows for as much as 20-fold regulation of output gene expression in response to input signal, with maximal expression approaching the highest levels observed in yeast, yet being tunable to intermediate and lower expression levels. EC50 values are more than 4 times lower than in previously best-performing non-amplifier ribozyme switches. The system design retains the modular-input architecture of the ribozyme switch platform, and the near-digital dynamic ranges of TF-based gene control.

Together, these developments suggest great potential for the wide applicability of these platforms for better-performing eukaryotic gene regulation, and more sophisticated, customizable reprogramming of cellular activity.

Running in the Family – Paternalism and Familiness in the Development of Family Businesses

The study focuses on two features of family businesses (FBs), namely familiness and paternalism. These two concepts are inseparable in two ways: inseparable from family businesses and also from each other. Family businesses differ from one another in the degree of family involvement, leadership and management in the business. Paternalism as a leadership attitude is naturally present in FBs, especially in the founding stage of development. This feature provides the solid bases for establishing a strong and proud culture built around the personality and success of the founder. This characteristic however can become a major hindering factor upon succession. Through a review of the literature and the INSIST studies for Central Europe this study aims to identify the supportive and limiting factors of both phenomena and examine the case studies of the INSIST research project for signs of the existence of these supportive and limiting factors. It is found that the degree of familiness in these firms is a sliding scale and a lack of familiness is not a precursor for failure. Paternalism is found to be broken down into authoritarian, benevolent, moral and enlightened. After discovering studies claiming that paternalism is a stage in the process of leadership style changing from participative to autocratic (or vice versa) and that Central Europe and the current era of instability and uncertainty lead to employees preferring a more autocratic or paternalistic style, our findings suggest that there are more driving than restraining forces for family firms adopting a paternalistic style. Furthermore many cases appear to be on the path from an authoritative towards a more enlightened paternalistic leadership style either out of choice in the search to shake off the drawbacks of other types of paternalism or as part of a natural evolution of this particular leadership style within the context of this study.

Mechanisms of force-mediated regulation of transcription, chromatin remodeling and cell fate decisions

Tissue mechanics and cellular interactions influence every single cell in our bodies to drive morphogenesis. However, little is known about mechanisms by which cells sense physical forces and transduce them from the cytoskeleton to the nucleus to control gene expression and stem cell fate. We have identified a novel nuclear-mechanosensor complex, consisting of the nuclear membrane protein emerin (Emd), actin and non-muscle myosin IIA (NMIIA), that regulates transcription, chromatin remodeling and lineage commitment. Force-induced enrichment of Emd at the outer nuclear membrane leads to a compensation between H3K9me2,3 and H3K27me3 on constitutive heterochromatin. This strain-induced epigenetic switch is accompanied by the global rearrangement of chromatin. In parallel, forces promote local F-actin polymerization at the outer nuclear membrane, which limits the availability of nuclear G-actin. Subsequently, the reduction of nuclear G-actin results in attenuated global transcription and therefore increased H3K27me3 occupancy to reinforce gene silencing. Restoring nuclear actin levels in the presence of mechanical strain counteracts PRC2-mediated silencing of transcribed genes. This mechanosensory circuit is also observed in vivo. Depletion of NMIIA in mouse epidermis leads to decreased H3K27me3 levels and precocious lineage commitment, thus abrogating organ growth and patterning. Our results reveal how mechanical signals regulate nuclear architecture, chromatin organization and transcription to control cell fate decisions.

Sexual selection in a tropical fruit fly : role of a plant derived chemical in mate choice

The specific mechanisms by which selective pressures affect individuals are often difficult to resolve. In tephritid fruit flies, males respond strongly and positively to certain plant derived chemicals. Sexual selection by female choice has been hypothesized as the mechanism driving this behaviour in certain species, as females preferentially mate with males that have fed on these chemicals. This hypothesis is, to date, based on studies of only very few species and its generality is largely untested. We tested the hypothesis on different spatial scales (small cage and seminatural field-cage) using the monophagous fruit fly, Bactrocera cacuminata. This species is known to respond to methyl eugenol (ME), a chemical found in many plant species and one upon which previous studies have focused. Contrary to expectation, no obvious female choice was apparent in selecting ME-fed males over unfed males as measured by the number of matings achieved over time, copulation duration, or time of copulation initiation. However, the number of matings achieved by ME-fed males was significantly greater than unfed males 16 and 32 days after exposure to ME in small cages (but not in a field-cage). This delayed advantage suggests that ME may not influence the pheromone system of B. cacuminata but may have other consequences, acting on some other fitness consequence (e.g., enhancement of physiology or survival) of male exposure to these chemicals. We discuss the ecological and evolutionary implications of our findings to explore alternate hypotheses to explain the patterns of response of dacine fruit flies to specific plant-derived chemicals.