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Full-Text Articles in Business
It's Just A Game, Or Is It? Real Money, Real Income, And Real Taxes In Virtual Worlds, William D. Terando, Brian E. Mennecke, Diane J. Janvin, William M. Dilla
It's Just A Game, Or Is It? Real Money, Real Income, And Real Taxes In Virtual Worlds, William D. Terando, Brian E. Mennecke, Diane J. Janvin, William M. Dilla
Scholarship and Professional Work - Business
Virtual worlds like Second Life offer players opportunities to earn real-world income through their activities in the game. It will not be long before governments begin to establish policies and regulations regarding the income generated by players of these game environments. This paper examines the issue of taxes in virtual world games. Two alternative places for recognizing income could be established by regulators: 1) at the point when in-game transactions take place; or 2) when players convert game assets into real-world currency. We argue for realization of income, and therefore taxation, at the exchange. We expect that burdensome policies such …
A U.S. Manager's Guide To Differences Between Ifrs And U.S. Gaap, James F. Sander, Susan B. Hughes
A U.S. Manager's Guide To Differences Between Ifrs And U.S. Gaap, James F. Sander, Susan B. Hughes
Scholarship and Professional Work - Business
International Financial Reporting Standards (IFRS) are now required for consolidated financial reports for all European Union exchange-listed companies. Officials estimated that for 2005, the initial year of EU adoption, 8,000 financial statements were prepared in accordance with IFRS for the first time. Other countries have also adopted IFRS or IFRS-equivalent financial reporting standards. IFRS differ from U.S. Generally Accepted Accounting Principles (GAAP) in many key areas. The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) are working on various convergence projects designed to reduce or eliminate differences between the two sets of reporting standards. But existing …
Valuation And Classification Of Company Issued Cash And Share-Puts, William D. Terando, Wayne Shaw, David Smith
Valuation And Classification Of Company Issued Cash And Share-Puts, William D. Terando, Wayne Shaw, David Smith
Scholarship and Professional Work - Business
This paper examines whether investors’ valuations of cash and share-put warrants are influenced by their potential differential effect on firm solvency. It is motivated by the enactment of SFAS 150, which requires that all contingent put warrant obligations be classified as balance sheet liabilities regardless of put type. Consistent with the critics of SFAS150, we show that market participants differentially value cash and share-puts based on their solvency characteristics beyond the firm’s recorded assets and liabilities. Our results add to existing capital structure literature by suggesting that complex financial instruments (such as cash and share-puts) be reported separately from each …