Circular business strategies and supply chain finance in the Aruba waste sector : a case study of a small island jurisdiction

This paper focuses on possibilities and obstacles for a circular economy in the waste management sector in Aruba. The authors describe the Aruban economy and the consequences of its SIDS characteristics. The article defines concepts in the field of circular economy and presents a conceptual model for research in this area. Based on multimethod research, the paper argues that small and medium-sized firms (SMEs) in the waste sector in Aruba determine their financial needs partly on the opportunities offered by the international market and price developments. Financing often takes place from own resources or via a local bank. No examples of circular chain financing were identified. Chain cooperation takes place with partners within the existing holding or with international partners, whereby performance and hedging contracts are concluded to guarantee quality and delivery and to mitigate business risks such as price fluctuations on the world market. During the research, it became obvious that limitations resulting from Aruba’s small scale and ‘islandness’ – such as the limited goods flow, limited quantities of feed waste materials and financing facilities offered by the local banking sector, as well as insufficiently stimulating legislation and regulations, coupled with faltering knowledge circulation and social awareness – seriously hamper the development of circular entrepreneurism in Aruba. The article offers policy recommendations to mitigate the bottlenecks for sustainable development in Aruba.peer-reviewe

Supply chain finance and its accounting treatment : reclassification of trade payables and it's implications for the professional field

In the modern Supply Chain Finance landscape, Reverse Factoring is one of the most consolidated business model for working capital financing. However, accounting treatment of Reverse Factoring might affect the balance sheet of large corporate, with disruptive consequences for the programme as a whole. From an accountancy point of view, the issue is whether trade payables should be reclassified as short-term debt within a Reverse Factoring program. International accounting framework do not provide clear guidelines on this matter. Therefore, this volume aims at identify and highlight the factors that are likely to affect reclassification of trade payables within Reverse Factoring, in order to support corporates and service providers towards taking more aware decisions on these matters