The information content of tax loss carryforwards: IAS 12 vs. valuation allowance

This is the first study that analyzes the predictive ability of deferred tax information under IFRS. I examine whether deferred taxes provide information about future tax payments and future performance, using a German sample of IFRS firms. The focus on tax loss carryforwards enables a separation of the two relations, testing on the one hand, the relation between recognized deferred tax assets and future tax payments and on the other hand, the relation between the non-usable part of tax losses and future earnings. I find significantly negative coefficients for both deferred tax items, indicating that higher recognized deferred tax assets are associated with lower future tax payments and higher non-usable tax loss carryforwards with lower future performance. Additionally, I compare the tax accounts' predictive ability for a matched German and US sample and find no significant differences between firms reporting under IFRS and US-GAAP. Taken together, the evidence suggests that deferred tax items for tax loss carryforwards reported under IFRS provide useful information about future outcomes and that this predictive ability does not differ significantly from firms reporting under US-GAAP

Tax loss carryforward disclosure and uncertainty

We examine whether companies voluntarily disclose additional information about tax loss carryforwards when the recoverability is more uncertain. With this study, we aim to explain part of the huge cross-sectional variation in the tax footnote. To assess disclosure behavior, we hand collect data from notes of large German firms' IFRS financial statements and identify voluntarily disclosed information beyond the requirements of IAS 12. We find that uncertainty about the usability of tax losses has a significantly negative relation to the amount and quality of disclosure, controlling for other disclosure determinants derived from prior literature. These findings are robust for several indicators representing information and income uncertainty. Our findings suggest that managers anticipate the investors' need for more private information and disclose them voluntarily to send a signal of credibility to the market participants. It can be assumed that disclosing this information is less costly than facing potential risk premiums demanded by investors leading to higher cost of capital. This result indicates that part of the cross-sectional variation in the tax footnote can be explained by differing expectations to use the tax losses

Das "Werkbundarchiv - Museum der Dinge" im Spiegel studentischer Entwürfe, eine Fata Morgana?

Seit Ende 2002 ist das Werkbundarchiv - Museum der Dinge in Berlin zwar noch mit seinem Dokumenten-Archiv, seinen Depots und der Bibliothek im Martin-Gropius-Bau untergebracht, es hat dort jedoch keine eigenen Ausstellungsräume mehr. Die schwierige Lage der Institution geht einher mit dem Verlust öffentlicher Präsenz. Vor diesem Hintergrund fanden seit Herbst 2002 in Zusammenarbeit mit Hochschulen in Berlin und Potsdam Workshops statt, die wiederum in architektonischen Entwürfen für neue Standorte ihre Fortsetzung fanden. Unter dem Titel Entwürfe für einen besseren Alltag Visionen für eine Schule des Befremdens verstehen sich diese studentischen Arbeiten vor allem als eine Form der Reflexion des Museums und seiner spezifischen Anliegen in Beziehung zur Stadt und zur Museumslandschaft Berlins

When do managers highlight their effective tax rate?

We examine the disclosure of GAAP effective tax rate (ETR) information in firms' financial statements. Applying the theoretical underpinnings of Wagenhofer (1990) to a tax setting, we argue that firms face a tradeoff in their GAAP ETR disclosure decision. On the one hand, firms have incentives to increase GAAP ETR disclosure if the ratio has a condition that is favorable from an investor's perspective, expecting positive capital market reactions. On the other hand, the disclosure might draw tax auditors' and public attention to the GAAP ETR and result in proprietary costs in terms of additional tax payments or reputational damages. We empirically test the disclosure behavior by examining the relation between disclosure intensity and five different measures of favorable GAAP ETR conditions. First, we provide evidence that the annual report section in which most of the firms disclose GAAP ETR information is the management report, indicating that firms assign considerable relevance to the ratio. Second, we find a higher disclosure intensity if the GAAP ETR has a favorable condition, i.e. is decreasing or near the average ratio of firms in the same industry or size group. We do not find a significant relation to the disclosure level for smooth GAAP ETRs. Our findings indicate that firms assess the benefits of providing the favorable GAAP ETR information to be higher than the related costs. Documenting firms' GAAP ETR reporting behavior, we contribute to the tax disclosure literature by providing insights into possible disclosure incentives. Further, our results could increase awareness among investors to have a second look at the GAAP ETR if the disclosure intensity with respect to the ratio is low

When Do Firms Highlight Their Effective Tax Rate?

This study examines GAAP effective tax rate (ETR) visibility as a distinct disclosure choice in firms’ financial statements. By applying a game-theory disclosure model for the voluntary disclosure strategies of firms, in a tax setting, we argue that firms face a trade-off in their ETR disclosure decisions. On the one hand, firms have an incentive to enhance their ETR disclosure when the ratio offers shareholders “favourable conditions”, for example, higher expected after-tax cash-flows. On the other hand, the disclosure of a favourable low ETR could attract the attention of tax auditors and the public and ultimately result in disclosure costs. We empirically test disclosure behaviour by examining the relation between disclosure visibility and different ETR conditions that reflect different stakeholder-specific costs and benefits. While we find that unfavourable ETR conditions are not highlighted, we observe higher disclosure visibility for favourable ETRs (smooth, close to the industry average, and decreasing ETRs). Additional analyses reveal that this high visibility is characteristic of firm years with only moderately decreasing ETRs at usual ETR levels, while extreme ETRs are not highlighted. Interestingly and in contrast to our main results, a subsample of family firms does not seem to highlight favourable ETRs.Series: WU International Taxation Research Paper Serie

Optical Structural Analysis of Individual α-Synuclein Oligomers.

Small aggregates of misfolded proteins play a key role in neurodegenerative disorders. Such species have proved difficult to study due to the lack of suitable methods capable of resolving these heterogeneous aggregates, which are smaller than the optical diffraction limit. We demonstrate here an all-optical fluorescence microscopy method to characterise the structure of individual protein aggregates based on the fluorescence anisotropy of dyes such as thioflavin-T, and show that this technology is capable of studying oligomers in human biofluids such as cerebrospinal fluid. We first investigated in vitro the structural changes in individual oligomers formed during the aggregation of recombinant α-synuclein. By studying the diffraction-limited aggregates we directly evaluated their structural conversion and correlated this with the potential of aggregates to disrupt lipid bilayers. We finally characterised the structural features of aggregates present in cerebrospinal fluid of Parkinson's disease patients and age-matched healthy controls

Aided phytostabilisation over two years using iron sulphate and organic amendments: Effects on soil quality and rye production

An outdoor macrocosm experiment using Fe-based and organic amendments over 2 years was set up to evaluate the effectiveness of aided-phytostabilisation. For that, a soil contaminated with As- and Cu-rich waste material (∼13000 mg As kg−1 and ∼500 mg Cu kg−1) was treated with combinations of iron sulphate (Fe) with lime, paper mill sludge (PS), holm-oak biochar (BC), olive mill waste compost (OMWC) or green waste compost (GWC). Rye (Secale cereale L.) was grown in the treated and non-treated soils 16 months after addition of the amendments. Arsenic and Cu dynamics in soil were assessed throughout the experiment and soil quality parameters (soil nutrients, organic matter and soil biology) were measured almost two years after addition of the amendments. All treatments resulted in a reduction of soluble and extractable Cu during the experiment and, despite the increase in soil pH (from 5 to 68) and DOC (from 10 up to 50 mg DOC L−1) provoked by the amendments, As was not significantly mobilised in the treated soils. Treatments combining Fe sulphate with the organic materials, especially biochar and both composts, resulted in an increase in soil available nutrients and enhanced rye growth. In this semi-field scale experiment, the combination of Fe sulphate with holm-oak biochar showed the most promising results in terms of soil fertility (nutrient availability), plant As and Cu uptake and soil C sequestration. Further research should focus on monitoring long-term effects of the soil amendments on crops, following repeated applicationsThis work has been financed by the Spanish Ministry of Economy and Competitiveness (project CTM2013-48697-C2-2-R/MINECO). The authors thank Lynn Toepper for her help with sequential extractions

Learn&Play: Entwurf eines Serious Games für Ingenieurstudiengänge nach dem Learning Mechanic-Game Mechanic Framework

Die Technische Mechanik (TM) ist ein Grundlagenfach vieler Ingenieurstudiengänge. Lern- und Verständnisschwierigkeiten in diesem Bereich führen jedoch verstärkt zu schlechten Prüfungsergebnissen und Problemen im weiteren Studienverlauf (Dammann, 2016). Von Studierenden häufig benannte Hürden sind v.a. den richtigen Lösungsansatz zu finden, mangelnde Vorstellungskraft, der hohe Lernaufwand, mathematische Grundlagen, unklare Aufgabenstellung, die Komplexität des Lernstoffs sowie nachträgliches (meist selbstständiges) Aufarbeiten (Seidel, Weidle, Flagmeier, Börner & Vossler, 2019). Game-based Learning (GBL) bietet eine Möglichkeit, Studierende und Lehrende bei der Bewältigung dieser Hürden zu unterstützen. In einem spielerisch gestalteten Lernszenario können Lernprozesse auf Grundlage vorher definierter Lernziele durch narrativ-immersive, adaptive, kompetitive und/oder kooperative Elemente unterstützt werden (Le, Weber & Ebner, 2013). Der Einsatz von GBL kann sich zudem positiv auf affektive, motivationale, kognitive und sozio-kulturelle Faktoren auswirken (Plass, Homer & Kinzer, 2015). Im Kontext des Ingenieurwesens erhofft sich das hier vorgestellte Learn&Play Projekt durch die geeignete Auswahl und Gestaltung von Spielelementen eine Ansprache dieser Faktoren, sodass eine Hinwendung zum Theorie geprägten Lerninhalt und schließlich auch zum Lernen selbst stattfindet. Dabei steht die aktive Auseinandersetzung und praktische Selbsterfahrung mit den Inhalten der TM im Vordergrund, was auch zu einer Verringerung der Komplexität führen soll. [... aus der Einführung