Seventy points on the income tax; common errors of taxpayers in reporting net income under the federal income tax law

Mode of access: Internet.

Comprehensive income: evidence from Portuguese listed companies on reporting choices and value relevance

This work project aims at analysing choices related to Comprehensive income (CI) of Portuguese listed firms and understanding the reasons behind them. Additionally, it studies the relevance of CI versus Net Income (NI). It was found that firm’s size and volume of Other comprehensive income (OCI) are positively related with the choice for separate statements while smaller firms with positive NI and negative OCI tend to disclose less information about taxes. The value relevance of CI proved to be superior to that of NI but OCI seems to have no incremental value relevance.

Depreciation, income distribution and the UK REIT

Purpose – The purpose of this paper is to consider prospects for UK REITs, which were introduced on 1 January 2007. It specifically focuses on the potential influence of depreciation and expenditure on income and distributions. Design/methodology/approach – First, the ways in which depreciation can affect vehicle earnings and value are discussed. This is then set in the context of the specific rules and features of REITs. An analysis using property income and expenditure data from the Investment Property Databank (IPD) then assesses what gross and net income for a UK REIT might have been like for the period 1984-2003. Findings – A UK REIT must distribute at least 90 per cent of net income from its property rental business. Expenditure therefore plays a significant part in determining what funds remain for distribution. Over 1984-2003, expenditure has absorbed 20 per cent of gross income and been a source of earnings volatility, which would have been exacerbated by gearing. Practical implications – Expenditure must take place to help UK REITs maintain and renew their real estate portfolios. In view of this, investors should moderate expectations of a high and stable income return, although it may well still be so relative to alternative investments. Originality/value – Previous literature on depreciation has not quantified amounts spent on portfolios to keep depreciation at those rates. Nor, to our knowledge, has its ideas been placed in the indirect investor context.

EC71-854 Income Statement (Revised)

This extension circular is an income statement form that covers the following areas: Cash Farm Income (grain/hay sales, livestock sales, livestock product sales, government payments, custom work); Cash Farm Expenses (cash operating, breeding livestock purchases, gross cash farm expenses); Adjustment (inventory, machinery/equipment depreciation, fixed farm improvements depreciation, capital gain or loss on machinery/equipment, gross sales of machinery/equipment, real estate sold); and Non-Farm Income (operators's wage, wife's wage, interest/dividend income, gifts/inheritances, gain or loss on security, non-farm inventory change, net income on other farms owned and non-farm real estate).

Measuring the effect of agricultural cooperatives on household income using PSM-DID : a case study of a rice-producing cooperative in China

Agricultural cooperatives in China, known as Farmers' Professional Cooperatives (FPCs), are becoming popular and have been intensely promoted by the Chinese government to improve the economic welfare of small farmers. However, very few studies on Chinese agricultural cooperatives have measured the benefits to farmers who participate in FPCs after controlling for time-invariant attributes of farmers. This paper investigates the treatment effect of participation in a rice-producing cooperative in suburban China using propensity score matching (PSM) and difference-in-differences (DID) method. Estimated results show that no significant difference is observed between participants and non-participants of the cooperative in terms of net income from rice production when controlling for the difference in farmers' rice incomes before the treatment. In addition, there is no significant heterogeneity of the treatment effects between large and small farmers, although the probability of participation in the cooperative is significantly higher when the size of cultivated rice farmland is greater. These results indicate that the benefits of the cooperative appear to be overestimated considering the vigorous policy supports for FPCs from the Chinese government.

No more than a messenger?

If a real estate agent describes a property as being “a golden opportunity to invest” the expression will be readily construed as mere “puffery”. The legal landscape changes when a real estate agent describes a property as “leased” and having a “guaranteed net income”. Can an agent avoid potential liability, for an inaccurate description, by arguing that they were merely acting as a messenger to pass on information received from their vendor client? The potential liability of real estate agent “messengers” was recently considered by the Queensland Court of Appeal in Banks & Anor v Copas Newnham Pty Ltd & Ors [2002] QCA 217.

Were regulatory changes in reporting "abnormal items" justified? : evidence of intra-period classificatory earnings management practices in Australia

Purpose Managers generally have discretion in determining how components of earnings are presented in financial statements in distinguishing between ‘normal’ earnings and items classified as unusual, special, significant, exceptional or abnormal. Prior research has found that such intra-period classificatory choice is used as a form of earnings management. Prior to 2001, Australian accounting standards mandated that unusually large items of revenue and expense be classified as ‘abnormal items’ for financial reporting, but this classification was removed from accounting standards from 2001. This move by the regulators was partly in response to concerns that the abnormal classification was being used opportunistically to manage reported pre-abnormal earnings. This study extends the earnings management literature by examining the reporting of abnormal items for evidence of intra-period classificatory earnings management in the unique Australian setting. Design/methodology/approach This study investigates associations between reporting of abnormal items and incentives in the form of analyst following and the earnings benchmarks of analysts’ forecasts, earnings levels, and earnings changes, for a sample of Australian top-500 firms for the seven-year period from 1994 to 2000. Findings The findings suggest there are systematic differences between firms reporting abnormal items and those with no abnormal items. Results show evidence that, on average, firms shifted expense items from pre-abnormal earnings to bottom line net income through reclassification as abnormal losses. Originality/value These findings suggest that the standard setters were justified in removing the ‘abnormal’ classification from the accounting standard. However, it cannot be assumed that all firms acted opportunistically in the classification of items as abnormal. With the removal of the standardised classification of items outside normal operations as ‘abnormal’, firms lost the opportunity to use such disclosures as a signalling device, with the consequential effect of limiting the scope of effectively communicating information about the nature of items presented in financial reports.

Agroforestry systems for sustainable livelihoods and improved land management in the East Usambara Mountains, Tanzania

Forest destruction for agriculture continues to be a major threat to the rich biological diversity in the East Usambara Mountains in the north-eastern corner of Tanzania. The highest ratio of endemic plant and animal species found on 100 km2 anywhere in the world is depending on the remaining natural forests. Forests are vitally important for the local population in many different ways, and nationally they are an important source of water and hydroelectricity. The soils, of low fertility and mostly acidic Ferrasols, mainly have the nutrients in the topsoil. After clear-cutting, the soils soon become poor when the topsoil is eroded. High-value cardamom is nowadays unsustainably cultivated in the natural forests of the East Usambaras. The general aim was to study the possibilities to develop new profitable and sustainable agroforestry systems for the benefit of the local people that could contribute to relieving the pressure on the remaining natural forests in the East Usambara Mountains. Results from a spice crop agroforestry trial, established in cooperation with a local farmer, showed a clear advantage of intercropping cardamom (Elettaria cardamomum) and black pepper (Piper nigrum) with trees, especially with Grevillea robusta. The nitrogen fixing tree species Gliricidia sepium also improved the nitrogen and organic matter content of the soil over levels found in the natural forest. With improved agroforestry methods for spice production the households generated as much as13 times the net income obtained with traditional forest cultivation practices. There are thus sustainable and profitable ways to cultivate spices as cash crops in well-managed homegardens. However, the farmers need stable markets, access to credit and comprehensive extension services. The soil fertility depletion should be reversed with organic manure application and an enabling policy environment for the smallholder-farming sector. Strong farmers organisations and equal rights to resources and decision-making are needed. Organic spices have an increasing demand, and their export would be profitable for these farmers. What is, however, most needed for a change is a political will of a government that understands the importance of agricultural and forestry development for poverty reduction.

The determinants of fair value measurements of banks: International evidence

The purpose of this study is to investigate the accounting choice decisions of banks to employ Level 3 inputs in estimating the value of their financial assets and liabilities. Using a sample of 146 bank-year observations from 18 countries over 2009-2012, this study finds banks’ incentives to use Level 3 valuation inputs are associated with both firm-level and country-level determinants. At the firm-level, leverage, profitability (in term of net income), Tier 1 capital ratio, size and audit committee independence are associated with the percentage of Level 3 valuation inputs. At the country-level, economy development, legal region, legal enforcement and investor rights are also associated with the Level 3 classification choice. Lastly, ‘secrecy’, the proxy for culture dimensions and values, is found to be positively associated with the use of Level 3 valuation inputs. Altogether, these findings suggest that banks use the discretion available under Level 3 inputs opportunistically to avoid violating debt covenants limits, to increase earnings and manage their capital ratios. Results of this study also highlight that corporate governance quality at the firm-level (e.g. audit committee independence) and institutional features can constrain banks’ opportunistic behaviors in using the discretion available under Level 3 inputs. The results of this study have important implications for standard setters and contribute to the debate on the use of fair value accounting in an international context.

The determinants of fair value measurements of banks: International evidence

The purpose of this study is to investigate the accounting choice decisions of banks to employ Level 3 inputs in estimating the value of their financial assets and liabilities. Using a sample of 146 bank-year observations from 18 countries over 2009-2012, this study finds banks’ incentives to use Level 3 valuation inputs are associated with both firm-level and country-level determinants. At the firm-level, leverage, profitability (in term of net income), Tier 1 capital ratio, size and audit committee independence are associated with the percentage of Level 3 valuation inputs. At the country-level, economy development, legal region, legal enforcement and investor rights are also associated with the Level 3 classification choice. Lastly, ‘secrecy’, the proxy for culture dimensions and values, is found to be positively associated with the use of Level 3 valuation inputs. Altogether, these findings suggest that banks use the discretion available under Level 3 inputs opportunistically to avoid violating debt covenants limits, to increase earnings and manage their capital ratios. Results of this study also highlight that corporate governance quality at the firm-level (e.g. audit committee independence) and institutional features can constrain banks’ opportunistic behaviors in using the discretion available under Level 3 inputs. The results of this study have important implications for standard setters and contribute to the debate on the use of fair value accounting in an international context.

Feasibility of adopting integrated rice-cum-fish culture system to enhance the development of conventional aquaculture participation in Niger State

In a survey conducted to find out the status of integrated rice-cum-fish culture in Niger State, Nigeria, 0.37 ha of Fadama wetlands was utilized for rice-cum-fish culture and at experimental stage. In the case study of this rice-cum-fish model, the Nile Tilapia (Oreochromis niloticus) was involved. The result was that 1,4720 kg/ha/yr could be produced using chick manure application under rice-cum-fish culture model. The available records reveal that 233,079 ha out of 495,000 ha of estimated Fadama in Niger State was used for rice cultivation in 1997. If 233,079 ha were to be used for integrated rice-cum fish culture, it is estimated that 343,092 mt of fish (Oreochromis niloticus) could be produced per year. The fish demand in Niger State in 2002 was 50,000 mt. The NPK application under rice-cum-fish production gave the best rice production estimated at 43,968.0 kg/ha/yr. The percentage increase in rice yield as well as increase in net income due to introduction of fish was 10.1 % and 54.4% respectively. The culture system is therefore recommended for adoption towards greater participation in aquaculture development by the farmers

Economic analysis of fish farming in Ogun State

This study examined the economic potential of fish farming in Abeokuta zone of Ogun State in the 2003 production season. Descriptive statistics cost returns and multiple regression analysis were used in analyzing the data. The farmers predominantly practiced monoculture. Inefficiency in the use of pond size, lime and labour with over-utilization of fingerlings stocked was revealed by the study. The average variable cost of N124.67 constituted 45% of the total while average fixed cost was N149.802.67 per average farm size. Fish farming was found to be a profitable venture in the study area with a net income of N761, 400.58 for an average pond size of 301.47sq.m. Based on these findings, it is suggested that for profit maximization, the fish farm will have to increase the level of their use of fingerlings and fertilizers and decrease the use of lime labour and pond size

毛乌素沙地土地利用/土地覆被变化研究

毛乌素沙地是我国十二大沙漠之一，地处北方干旱半干旱区向亚湿润区过渡地带，长期以来，不合理的人类土地利用，结合当地脆弱的环境生态特征，引起了严重的现代荒漠化过程，是我国北方荒漠化研究的重点地区。本文着重从自然和人文学科密切合作的角度，对毛乌素沙地土地利用／土地覆被变化的内在作用机制进行了研究，得到以下主要结论： 1. 利用多年实地观测数据资料，考察了毛乌素沙地四种主要草地类型代表性植物群落地上生物量响应气候因子波动的变化规律，建立了植物地上生物量对气候因子的逐月回归模型，揭示出如下规律：①各种气候因子对不同类型草地以及同一类型不同生长阶段草地都产生不同的影响作用;②同一气候因子在植物不同生长阶段上，对生物量形成的重要性程度存在差异：③在植物生长期内，每个生长阶段的生物量都对后一时期的生物量产生显著影响，说明植物生长的连续性对于生物量的形成和积累是重要的;④在植物的凋枯期，各种气候因子基本上都不对生物量产生显著影响;⑤水分因子对毛乌素沙地几乎各种类型草地的生物量，都是重要的影响因子，毛乌素沙地降水状况在不同年份的显著波动对草地植物地上生物量的影响，不仅直接构成了土地覆被变化的重要组成部分，而且还影响到土地利用的方式、方法和后果。 2. 在考察毛乌素沙地草地地上生物量对气候因子变化的响应规律中，利用逐月动态回归建模方法改进了传统的累积气候因子回归建模方法。逐月回归模型与累积回归模型的比较显示，逐月动态回归模型的优势表现在三个方面：①可以提供累积回归模型无法揭示的作用规律;②模拟更加精确;③可以预测不同气候条件下群落地上生物量的变化范围。 3. 利用风速、降水和潜在蒸发等气象记录资料，建立了毛乌素沙地气候因子影响沙尘暴频率的作用模型，定量地考察了沙地各处气候因子对沙尘暴频率的影响作用。研究表明，气候因素是导致毛乌素沙地沙尘暴发生的主导原因，在沙地各处，气候因子可以解释沙尘暴频率分布格局总信息的比率分别为：乌审召83.6%，乌审旗77.5%，河南82.4%，鄂托克旗79.8%，新街73.1%，伊金霍洛旗82%。 4. 在定量考察气候因素对沙尘暴频率影响作用的基础上，对影响沙尘暴频率格局的自然和人为因素进行了定量分离，研究表明：人为影响因素对对沙尘暴发生起次要作用，解释沙尘暴频率分布格局信息的比率分别为：乌审召16.4%，乌审旗22.5%，河南17.6%，鄂托克旗20.2%，新街26.9%，伊金霍洛旗18%。 自然和人为因素影响作用的定量分离研究表明，毛乌素沙地人为因素的影响作用表现出空间上的差异性：①从方位上说，呈现自东向中、西部递减的梯度：②从地点上说，城镇附近人为影响作用远高于农村地区;③从土地利用方式上说，农垦种植业区域高于畜牧业区域。 5. 在实地观测基础上，建立了裸露沙面和植被覆盖沙面风蚀输沙率模型，定量考察了植被覆盖率与风蚀输沙率之间的关系。研究表明：当植被覆盖率达到60%以上，可以保护地表土壤使风蚀在大多数条件下不致发生;当覆盖率达到40%，可以使风蚀输沙大为减少;而当植被覆盖率低于10%，植被覆盖基本不能对地表土壤起到有效的防护作用。 6. 应用植被覆盖地表风蚀输沙率模型，考察了沙地不同风速条件下植被有效覆盖率。根据当地气象台站的多年气象记录，沙地最大风速在20m/s左右，这样的风速条件下，保证风蚀不致发生的植被有效覆盖率为65%左右;在沙地常见的大风风速14-16m/s下，植被有效覆盖率大致为50-55%;对于沙地一般的中等风速l0-12m/s．植被有效覆盖率为40%。植被覆盖对风蚀的影响作用也可以理解为，植被覆盖使沙粒起动风速发生了增大效应，研究表明：与裸露沙面沙粒起动风速4.5m/s对照，70%植被覆盖率使起动风速改变为15.4m/s;60%植被覆盖率使起动风速改变为12.1m/s;40%植被覆盖率使起动风速改变为8.Om/s;而在10%植被覆盖条件下，起动风速为5.Om/s，改变量很小，说明植被覆盖的保护作用极其有限。 7. 基于野外实地观测，比较了沙地五种常见植物种和二种人工防护材料防风效应上的差异。研究表明，防风效应由高到低的次序是，沙蒿>芨芨草>杨柴和牛心朴子>沙障>栅栏>旱柳;就乔、灌、草和人工材料而言，防风效应的次序是，灌木植被>草本植被>人工材料>乔木植被。植物和人工防护材料降低风速的比率与风速呈现二次函数关系，不同植物种或人工材料，降低风速比率都表现出不同的规律，在一般情况下，降低风速效应随着风速的增大而降低。 8. 通过不同植物种防风效应的比较研究，对毛乌素沙地植被生态建设的实践有一定的指导意义。毛乌素沙地的植被建设中对植被类型和植物种类的选择，应该遵循如下原则：①选取防风固沙效应好的植物种类;②应该考虑植物水分供给与需求的平衡状况，实行适地适树;③植物防护效应应该与当地风蚀气候在时间上较好地匹配，在春季等风蚀严重季节，植被覆盖应该具有较好的防风效应。 9. 在现实中，各种影响风蚀的因素是同时发挥作用的。将风蚀影响因素分解为风速、湿润度和植被覆盖率（以及植被类型）三个方面，在此基础上，建立了风蚀影响因素的综合作用的概念模型和沙丘活动性指数定量模型。湿润程度低、风速高、植被覆盖率低的地区，是风蚀最为严重的地区;在湿润程度高、风速低、植被覆盖率高的地区，是风蚀最弱的地区;在其他地区，风蚀状况根据三个方面因素的综合状况来决定。 10. 利用风蚀影响因子综合作用的沙丘活动性指数模型，从空间、时间、植被类型变化角度，考察了毛乌素沙地的风蚀变化状况。得到如下结论：①随着空间变化，风速、降水等气候因素也随之存在差异，导致沙丘活动性指数的变化规律是，西北部鄂托克旗沙丘活动性最高，乌审旗次之，其他几个站差别不太显著，这是由各地降水、气温、沙粒粒径等因素共同决定;②随着时间的变化，气候、植被生长等方面的状况随之发生改变，导致沙丘活动性发生变化，春季最高，冬季次之，夏秋季最低：③随着沙丘植被覆盖类型的变化，沙丘活动性也发生显著变化，在一般情况下，乔木覆盖沙丘活动性>草本植物覆盖沙丘>灌木覆盖沙丘。 11. 在实地调查土地利用现实状况及其社会、经济和政策影响因素的基础上，建立了我国北方干旱半干旱区土地利用决策机制的概念模型，分析了与土地利用密切相关的农牧民一政府一环境科学家这三个社会群体对土地利用的立场和影响作用力上的差异，分析了毛乌素沙地土地利用的现状及其影响因素，探讨了现实中不可持续土地利用行为发生的社会、经济和政策原因。 12. 在实地调查基础上，分别利用产出一费用分析法和过程影响因素分析法，建立了毛乌素沙地土地利用经济收益的定量模型。产出一分析研究表明，无论是农垦种植业，还是草地畜牧业，农牧民从这两种土地利用方式都只能获得较低下的经济收益。造成这种状况的原因，主要在于两个方面：一是低下且不断处于波动之中的农牧业产品物价，二是沉重的农牧业税收。 13. 将影响农牧业产出的因素，划分为四个方面：土地面积（牲畜头数）、环境状况、管理水平和利用强度，在此基础上建立了定量的影响作用模型。研究表明：环境状况指数每增加0.1，农牧业经济收益增加26%;管理水平因子每提高0.1，农牧业经济收益增加12.7%;农牧业经济收益最优的土地利用强度在0.4左右，在此之前，随着利用强度的增加，经济收益随之增大，而在此之后，随着利用强度的增大，经济收益逐渐降低，当土地利用强度达到0.9左右时，呈现负的经济收益。 14. 毛乌素沙地实施土地资源可持续利用，必须从技术的革新和社会经济政策等因素的调整两条途径同时入手，二者缺一不可。通过改进和应用节水灌溉、风能光能利用、生物增产技术，尽可能地提高各种资源的利用效率;通过应用免耕或浅耕技术，尽量减轻土地利用对资源和环境的破坏;通过栽培、速生技术，提高植被建设的成效和速度。而通过税收、物价政策的调整，尽可能地提高农牧民经济收益增长的速度，减轻土地利用压力;通过政府与人民之间对话和合作机制的建立，让广大农牧民参与到土地利用的决策和管理的过程中去;通过土地利用管理政策、措施的调整和完善，调动农牧民保护资源的积极性和自觉性;通过激励机制的建立，引导农牧民土地利用向着可持续的方向发展。 15. 实现毛乌素沙地土地资源可持续利用的有效途径，在于这样几个方面：①建立和完善政府及其管理部门与人民之间有效的对话和合作机制，让广大农牧民参与到土地利用决策和管理的过程中去：②实行产业结构调整，转变片面追求经济增长的做法，制订适应当地自然条件和生态特征的发展模式;③降低农牧业税收、稳定并提高农牧业产品的物价，增加农牧民经济收入，减轻土地利用压力;④进一步改进和完善土地利用管理政策和法规;⑤建立有效激励机制，引导农牧民土地利用向着可持续的方向发展：⑥努力改进节水灌溉技术、生物增产技术，提高土地利用的科技水平：⑦改进环境保护和植被建设决策的科学性，提高植被建设的成效。

Shifting rice farming to fish culture in some selected areas of Mymensingh, Bangladesh: the process, conflicts and impacts

The evolutionary process of converting low-lying paddy fields into fish farms and its impact on agrarian communities in some selected areas of Mymensingh district were studied. This study was conducted through participatory rural appraisal (PRA) covering 12 villages from each of selected upazillas viz. Fulpur and Haluaghat of Mymensing [sic] district. A total of 12 PRA sessions were conducted where 90 farmers participated during 29 July to 26 August 2004. It is seen that the use of low-lying paddy fields was mostly confined to Broadcast Aman (B. Aman) rice production until 1960s. With the introduction of modern rice farming technology, the farmers started to produce Boro rice in Rabi season and B. Aman rice in Kharif season. With the passage of time, aquaculture technologies have been evolved and the farmers realized that fish farming is more profitable than rice cultivation, and then they started to utilize their paddy fields for alternate rice-fish farming and rice-cum-fish farming. Now a days, aquaculture based crop production system is in practice in more than 25% of the low-lying paddy fields. Conversion of rice fields in to fish ponds has brought up a change in the livelihood patterns of the rural farmers. The areas where the farmers involved themselves in the new production systems were fingerling collection, transportation and marketing of fry and fingerlings. During 1960s to 1970s, a few people used to culture fish in the permanent ponds for their own consumption, the species produced were rohu, catla, mrigal, ghainna, long whiskered catfish, freshwater shark (boal), snake head (shol) etc. Small fishes like climbing perch, stinging catfish, walking catfish, barb, minnows etc. were available in the rice fields during monsoon season. In 1980s to mid 1990s, some rice fields were converted into fish ponds and the people started to produce fish for commercial purposes. When rice-fish farming became profitable, a large number of people started converting their rice fields in to rice-fish culture ponds. Culture of some exotic fishes like silver carp, tilapia, grass carp, silver barb etc. also started in the paddy fields. Higher income from fish farming contributed positively in improving the housing, sanitation and education system in the study areas. It is seen that the medium and medium high lands were only used for alternate rice fish farming. The net income was high in any fish based cropping system that motivated the farmers to introduce fish based cropping system in the low-lying inland areas. As a result, the regional as well as communal income disparities occurred. However, the extraction of ground water became common during the dry period as the water was used for both rice and fish farming. Mass conversion of paddy fields into rice-fish culture ponds caused water logging in the study areas. In most cases, the participated farmers mentioned that they could be easily benefited by producing fish with T. Aman or only fish during the monsoon season. They agreed that this was an impressive technology to them and they could generate employment opportunities throughout the year. Finally, the social, economic and technical problems which are acting as constraints to rapid expansion of fish production system were reported from the interviewee.

Effects of increased stocking density and supplemental feeding on the production of milkfish fingerlings

Experiments were conducted to determine the effects of increased stocking density and supplemental feeding on survival and growth of milkfish (Chanos chanos ) fry to fingerling stage and also to evaluate the profitability of supplemental feeding in the milkfish fry nursery. Results showed that increased stocking density from 50 to 75 fry/m super(2) increased net income and is profitable. Survival was further increased through supplemental feeding with rice bran, which is cheap and easily obtainable.