Corporate, Social, Ethical and Environmental Reporting should ideally discharge the accountability of an organisation to its stakeholders. Voluntary reporting has been characterised by a dearth of neutral and objective information such that the advocates of SEER recommend that it be made compulsory. Their underlying rationale is that legally specified disclosure requirements and enforcement mechanisms will enhance the quality of such reporting. This paper sets out to explore how realistic this scenario actually is, in view of the conflicting interpretations in the (...) literature on this subject. To that end, a survey of the reporting patterns of 78 of the largest Spanish companies between 2001 and 2003 examines the extent of their compliance with the ICAC-2002 standard, which obliged them to make environmental disclosures in their financial statements. The results suggest that progressive and improved regulation could increase the volume and quality of SEER disclosures. They also suggest, however, that persistent non-compliance means that the problems associated with voluntary disclosure still exist. Finally, through an impression management perspective, the study reveals, the diverse strategies, ranging from dismissal to concealment, that are employed by companies to avoid transparency. As regulation improves and enforcement expectations rise, it becomes more difficult to dismiss compulsory reporting norms. As a result, some firms engage in more complex concealment strategies to attain corporate legitimacy, depriving stakeholders of regulatory information. The latter point serves to reconcile apparently contradictory explanations in the literature as to whether legitimacy theory might explain partial compliance with SEER regulation. (shrink)

The purpose of the paper is to determine the state of automotive corporations financial stability and to generalize the consequences of its violation for their activity and the global economy as a whole. Methods. The theoretical and methodological basis of the research is the scientific works in the field of corporate finance management and strategic development that studied analyzing and evaluating the financial stability of corporate companies, maintaining their financial stability in the medium and long term, official (...) statistics data of United Nations Conference on Trade and Development, financial statements of corporations Toyota Motor Corporation (Japan), Mercedes-Benz (Germany) and Tesla Motors (USA), own research results. The methodological basis of the study is a set of general scientific and special methods used to achieve the research goal: theoretical generalization, analysis and synthesis – in studying the content of scientific works on the research of financial stability of corporate companies and maintaining their financial stability; observation – to obtain primary information about the state of the world automotive market; the method of coefficient analysis and typing the situations – to assess the financial stability of automotive corporations; analytical – in determining the economic consequences of financial stability violation of automotive corporations; causation – to obtain final conclusions. Results. This article deals with the development of automotive industry in the world. The financial stability of leading automotive corporations is evaluated. The economic consequences of financial stability violation of automotive corporations are summarized. Financial strategies to improve the financial stability of automotive corporations are proposed. Practical value. The results of the study may be useful to the United Nations Conference on Trade and Development, the financial management of Toyota Motor Corporation, Mercedes-Benz and Tesla Motors. Value / originality – the state of financial stability of automotive corporations is determined and the consequences of its violation for their activity and the world economy as a whole are generalized. Further research should be directed towards the development of project measures to improve the financial stability of automotive corporations in the world. (shrink)

Financial statements are the main source of information showing the performance of an enterprise and its financial state. They are need for business management, analysis, internal and external audit, owners and state, investors, society. The set of financial statements is prepared by summarizing the company's financial year data. To prepare accountability, data is pre-accumulated and grouped in accounting records, synthetic and analytical accounting registers according to general principles: continuity, periodicity, permanence, prudence, monetary measure, accumulation, (...) neutrality, relevance of content, importance of information. These accounting principles are followed in the EU countries. According to A. Ivanauskienė, an annual stocktaking must be carried out before the annual financial statements are drawn up [3]. Accounting policy part includes accounting principles and a brief description of accounting methods and rules that are used by the entity in accounting and financial reporting. [2]. Accounting policies are general accounting principles, accounting methods, and rules intended for accounting management, formation and submission of financial accountability" - the definition is provided by A. Ivanauskienė [3]. For more information on accounting policies is written 6 BAS - the explanatory note of the accounting policy part should state that 'financial statements are prepared in accordance with business accounting standards. Other legal acts that have been used for accounting management and financial reporting purposes [1] are also included. At the end of the company's financial year, we have to prepare not only financial statements, but also to analyze it properly. Because only by submitting an annual analysis of financial statements we will be able to evaluate the company's performance and position. We will be able to determine whether the company's performance is profitable, whether by putting together and discussing all the reports, there is a risk for the company's future plans. Problem and Relevance - it is very important that the financial accountability reports would be prepared correctly and would perform their intended purpose. Accurate accumulation and systematization of accounting information allows to account correctly assets, capital, income and expenses. Otherwise, false information will result in distorted analysis results and its users will make wrong decisions. The aim of the work is to analyze the content of financial statements, principles of formation and use of data. Research object - financial accountability. Research objectives: 1. To analyze the essence and importance of financial accountability, to provide a systematic description of financial accountability. 2. To provide a procedure for regulating accountability and how to allocate it. 3. To set requirements for financial reporting. 4. To prove the importance of financial reporting with respect to companies. Research methods - analysis of scientific literature, including the comparison of theoretical statements, methods of generalization, logical and graphical representation. Conclusions: Financial statements should reflect fair information about the financial position and performance of the entity, as well as provide necessary information to internal and external users and disclose relevant information about significant events occurring during the reporting period. Preparation of financial statements is regulated by: Law on Accounting of the Republic of Lithuania, Law on Financial Accountability of the Republic of Lithuania, Consolidated Financial Accountability Compilation of the Republic of Lithuania, International Business Accounting Standards, National Business Accounting Standards, Accounting Policies shaped in the company. The data presented in the annual financial statements shall be prepared in accordance with the general accounting principles. The information received in the reports must be compared to the previous reporting periods and to the performance of other companies. The data obtained are needed for economic analysis, audit, planning of the company performance and forecasting. (shrink)

While corporate fiduciary duties in many jurisdictions are generally understood to be owed to shareholders, recent Canadian Supreme Court cases have held that directors owe their duties to the corporation, period, not to shareholders or any other stakeholders. This development has introduced significant indeterminacy to the law since it is not clear what such a conception of the duty requires. The Supreme Court did, however, make one clear statement: it held that directors owe a fiduciary duty to ensure that their (...) corporations obey statutory law. Such a duty encourages compliance with law, but may over-encourage compliance: individual directors do not necessarily gain personally from legal breaches, but may lose personally from them because of fiduciary liability, so they will have excessively strong incentives to avoid such breaches. The Article connects the fiduciary duty to obey law with recent developments in financial regulation that have increased the obligations on directors of financial institutions to oversee risk. By requiring directors to be engaged with risk at a governance level, regulators have enhanced the probability that directors will face liability under their fiduciary duties if their institutions do not comply with financial regulations. As the Article explains, the policy tradeoff between enhanced compliance benefits and over-compliance costs of fiduciary liability is different in the context of financial regulation from that in other settings. For example, significant corporate penalties, as opposed to penalties borne by individual directors, may be inconsistent with the prudential goals of regulation, perhaps because of toobig- to-fail concerns. The fiduciary duty to cause the corporation to obey financial regulation, and a stricter application of this duty than the highly deferential standard that exists in Delaware law, has advantages that do not exist in other legal and regulatory contexts. (shrink)

Fraudulent financial reporting, financial statements with errors so material as to require restatement, and biased reporting marred by defects such as managed earnings have plagued financial reporting in many countries in recent years. All of those failures are ethics failures that represent breaches of fiduciary duties by individuals who accepted responsibilities but did not fulfill them. The financial reporting system practiced in America is viewed by the parties involved in it as generally satisfactory. However, according (...) to another view, the interests of those primarily and secondarily responsible for those reports conflict with the interests of the intended beneficiaries, or users, of the corporate financial statements. A more realistic view of the actual operation of that reporting system shows that it is fundamentally flawed. Primary responsibility for failures rests with top management and financial management of the reporting corporation who are so strongly motivated to render favorable reports on their stewardship that they neglect their fiduciary responsibilities to investors. Secondary responsibility falls on independent auditors who are so heavily influenced by enterprise management that they, too, fail in carrying out their responsibilities to users of the audited financial statements. Ethics compromises are also found in the performances of academic accountants and members of accounting standards-setting bodies. The conflict between managements interest in reporting its performance in a favorable light and investors interest in decision-useful financial information will always exist and require regulation. However, changes in those regulations and in the basic governance arrangements involving shareholders, management, and auditors could reduce the opportunities and temptations for failures in carrying out fiduciary responsibilities. Most importantly, the close relationships between auditors and management must be loosened in favor of closer relationships between auditors and investors. (shrink)

Reports of research fraud have raised concerns about research integrity similar to concerns raised about financial accounting fraud. We propose a departure from self-regulation in that researchers adopt the financial accounting approach in establishing trust through an external validation process, in addition to the reporting entities and the regulatory agencies. The general conceptual framework for reviewing financial reports, utilizes external auditors who are certified and objective in using established standards to provide an opinion on the financial (...) reports. These standards have become both broader in scope and increasingly specific as to what information is reported and the methodologies to be employed. We believe that the financial reporting overhaul encompassed in the US Sarbanes–Oxley Act of 2002, which aims at preventing accounting fraud, can be applied to scientific research in 4 ways. First, Sarbanes–Oxley requires corporations to have a complete set of internal accounting controls. Research organizations should use appropriate sampling techniques and audit research projects for conformity with the initial research protocols. Second, corporations are required to have the chief financial officer certify the accuracy of their financial statements. In a similar way, each research organization should have their vice-president of research (or equivalent) certify the research integrity of their research activities. In contrast, the primary responsibility of the existing Research Integrity Officers is to handle allegations of research misconduct, an after-the-fact activity. Third, generally accepted auditing standards specify the appropriate procedures for external review of a corporation’s financial statements. For similar reasons, the research review process would also require corresponding external auditing standards. Finally, these new requirements would be implemented in stages, with the largest 14 research organizations that receive 25% of the total National Institutes of Health funding, adopting these research oversight enhancements first. (shrink)

This study examines the effects of publication of financial statements, the risk of a takeover of the auditee and the auditee's financial position on auditors' willingness to allow material errors in financial statements in case of management pressure. The results show that all factors significantly influence auditors' willingness to allow errors in financial statements.

This paper uses the intuition from the game of chickento model client-auditor financial reporting and audit effort strategies. Within an ethical context, our model is concerned with the client misreporting and its detection by the auditor. The paper uses a welfare game(similar to the game of chicken) to more formally model client-auditor strategies. The welfare game is then extended to provide additional insight into ethical and audit effort issues.Such a welfare gameprovides equilibrium in mixed strategies. This mixed strategy solution (...) makes possible four outcomes from the game: 1) Financial Statements are fairly presented by client and the auditor performs a normal audit, 2) Financial Statements are fairly presented by client and the auditor performs an extended audit (over auditing), 3) Financial State-ments are misstated by client and detected by the auditor, and 4) Financial Statements are misstated by client and not detected by the auditor (audit failure despite no intended unethical action on the part of the auditor). (shrink)

This paper examines the ethics of contemporary managerial compensation in the context of executive stock options. Economic considerations would dictate that executive stock options should be adjusted to eliminate the effect of overall stock market movements which are beyond the control of the executive. However, in practice, most executive stock options are not adjusted to control for these outside factors. Agency considerations are the most likely culprit. Adjusting for the influence of outside factors, such as a generally rising stock market, (...) from executive stock options sets a higher bar for managers to reach. Furthermore, traditional accounting standards permitted firms that did not adjust options to avoid reporting options as expenses. This presents CEOs and boards of directors with a major ethical dilemma. On the one hand, their duty to their shareholders and stakeholders dictates that executive stock options should be adjusted to eliminate outside noise from unrelated movements in the overall stock market. However, financial statements are presented in the language of accounting. If the overwhelming majority of the users of a language define a particular item in one way, then to deviate from the norm implies that the recipient of such a deviant statement may not properly interpret the statement. Likewise, if the standard practice is for firms to use unadjusted options and thus under-report expenses, to deviate from this industry norm risks that users of financial statements would not properly interpret the financial statements, with perhaps negative consequences for the shareholders. In short, if "everyone else does it," then it could be wrong for an individual firm to deviate from the norm as that would harm the shareholders. (shrink)

Financial accountants falsify financial statements by means of financial techniques such as financial practices and financial standards, and when compared with conventional financial data, it is found that the falsified financial data often lack correlation or even contradict each other in terms of financial data indicators. At the same time, there are also inherent differences in reporting patterns from conventional financial data, but these differences are difficult to test manually. In (...) this paper, the fuzzy C-means clustering method is used to amplify these differences and thus identify false financial statements. In the proposed algorithm, firstly, the normalization constraint of the FCM clustering algorithm on the sum of affiliation of individual samples is relaxed to the constraint on the sum of affiliation of all samples, thus reducing the sensitivity of the algorithm to noise and isolated points; secondly, a new affiliation correction method is proposed to address the problem that the difference in affiliation is too large after the relaxation of the constraint. In the discussion of this paper, most of the information comes from the annual reports of companies, administrative penalty decisions of the Securities Regulatory Commission, and some information comes from research reports made by securities institutions, which are limited sources of information. The proposed method can correct the affiliation to a reasonable range, effectively avoiding the problem that some samples have too much affiliation and become a class of their own and also avoiding the problem that it is difficult to choose the termination threshold of the algorithm iteration due to too little affiliation, and can ensure that the constraint on the sum of affiliation of all samples is always satisfied during the iteration of the algorithm. The method has the characteristics of high recognition accuracy and has the significance of theoretical method innovation. (shrink)

Recent financial fraud legislation such as the Dodd–Frank Act and the Sarbanes–Oxley Act (U.S. House of Representatives, Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, [H.R. 4173], 2010 ; U.S. House of Representatives, The Sarbanes–Oxley Act of 2002, Public Law 107-204 [H.R. 3763], 2002 ) relies heavily on whistleblowers for enforcement, and offers protection and incentives for whistleblowers. However, little is known about many aspects of the whistleblowing decision, especially the effects of contextual and wrongdoing attributes on (...) organizational members’ willingness to report fraud. We extend the ethics literature by experimentally investigating how the nature of the wrongdoing and the awareness of those surrounding the whistleblower can influence whistleblowing. As predicted, we find that employees are less likely to report: (1) financial statement fraud than theft; (2) immaterial than material financial statement fraud; (3) when the wrongdoer is aware that the potential whistleblower has knowledge of the fraud; and (4) when others in addition to the wrongdoer are not aware of the fraud. Our findings extend whistleblowing research in several ways. For instance, prior research provides little evidence concerning the effects of fraud type, wrongdoer awareness, and others’ awareness on whistleblowing intentions. We also provide evidence that whistleblowing settings represent an exception to the well-accepted theory of diffusion of responsibility. Our participants are professionals who represent the likely pool of potential whistleblowers in organizations. (shrink)

The rising tide of corporate scandals and audit failures has shocked the public, and the integrity of auditors is being increasingly questioned. It is crucial for auditors and regulators to understand the main causes of audit failure and devise preventive measures accordingly. This study analyzes enforcement actions issued by the China Securities Regulatory Commission against auditors in respect of fraudulent financial reporting committed by listed companies in China. We find that auditors are more likely to be sanctioned by the (...) regulators for failing to detect and report material misstatement frauds rather than disclosure frauds. Further analysis of the material misstatements indicates that auditors are more likely to be sanctioned for failing to detect and report revenue-related frauds rather than assets-related frauds. In sum, our results suggest that regulators believe auditors have the responsibility to detect and report frauds that are egregious, transaction-based, and related to accounting earnings. The results contribute to our knowledge of auditors’ responsibilities for detecting frauds as perceived by regulators. (shrink)

The audit profession’s technical and ethical standards require the application of professional skepticism throughout the financial statement audit process, as auditor skepticism is essential for detecting financial statement fraud and protecting the investing public. However, recent research suggests that audit supervisors often punish staff for exercising skepticism, presenting auditors with an ethical conflict between acting in their own self-interest and acting in a way that improves audit quality and protects the public. This research also suggests that supervisors who (...) reward appropriate skeptical behavior, regardless of the outcome, appear to develop staff that are more likely to detect and convey fraud red flags to their superiors. Building on this research, we use a case-based survey to identify the characteristics of audit supervisors (audit seniors and managers) who are more likely to reward appropriate skepticism, even if it ultimately does not identify a misstatement. We find that trait skepticism, especially suspending one’s judgment, positively drives the evaluations of professional skepticism in our setting. Also, we observe that when supervisors believe that their own audit partner will view the skepticism favorably, they “pay it forward” by rewarding their own staff who engage in skepticism. Our findings identify the characteristics that audit firms may want to develop and foster in auditors rising to supervisory levels. (shrink)

In this paper, we investigate a large-scale financial statement fraud to better understand the process by which individuals are recruited to participate in financial statement fraud schemes. The case reveals that perpetrators often use power to recruit others to participate in fraudulent acts. To illustrate how power is used, we propose a model, based upon the classical French and Raven taxonomy of power, that explains how one individual influences another individual to participate in financial statement fraud. We (...) also provide propositions for future research. (shrink)

This study adapts the theory of reasoned action (Ajzen and Fishbein, 1980) to the behavior of fraudulent reporting on financial statements so as to examine the effects of moral reasoning and self-monitoring on intention to report fraudulently, using structural equation modeling. The paper seeks to investigate two of the red flags for financial statement fraud identified in Loebbecke et al.'s (1989) paper: client management displays a significant lack of moral fiber and client personnel exhibit strong personality anomalies. (...) As expected, high moral reasoners are more influenced than low moral reasoners by their own attitude towards the behavior. Contrary to prior research, low self-monitors are found to be more influenced than high self-monitors by subjective norms. Future research is recommended to investigate the counter-intuitive results for self-monitors, to consider the implications of group decision making as regards the promulgation of fraudulent financial statements, and to examine additional red flags for financial statement fraud. (shrink)

The objective of this article is to identify and analyze the changes made to IFRS 3, 9, 10 and 16 since the beginning of COVID-19, and how these affect the presentation of financial statements, influencing decision-making. With the use of the deductive method and applying a qualitative approach, collecting information through the database of the Superintendency of Companies of Ecuador, an evaluative analysis of each company was carried out and how they applied the modifications offered by the IFRS, (...) reviewing the financial statements of 60 companies in the Commercial, Real Estate and Financial sectors where it was obtained that 15% of these companies presented changes in their financial statements, of this percentage 8.3% belong to companies in the commercial sector, 5. 1% comes from entities in the real estate sector and 1.6% are from companies in the financial sector. It is concluded that there is no significant change in the presentation of financial information since COVID-19. (shrink)

In the aftermath of scandals such as those at Enron and WorldCom, there is a growing suspicion of the corporate world. For this reason it is more important than ever for firms to maintain a good reputation. In Building Reputational Capital, Kevin T. Jackson offers a practical guide to taking the high road--the only path that leads to lasting success. Based on extensive research and real-world experience, Building Reputational Capital reveals basic principles of integrity and fairness with which firms can (...) build an enduring reputation. More than image, a firm's reputation is a form of capital often neglected in the boardroom and overlooked in conventional analyses of financial statements. Speaking directly to the work experience of real people in practical business settings, Jackson couples each principle with straightforward actions that drive management systems, and he provides tested strategies--from downsizing techniques to e-commerce tips--that cultivate the hidden power of a good reputation. He outlines the advantages of a superior reputation, describes the vital role the firm's leader must play, offers ways to build and protect your reputation on the Internet, and shows how to rescue your reputation once disaster hits. Perhaps most important, he shows how to strike the right balance of virtues like authenticity, honesty, responsibility, and stewardship of the environment, employees, and the economy. Highlighted with real-life success stories--from giants like Hewlett-Packard to small firms like Thanksgiving Coffee Company, Building Reputational Capital offers a simple but effective guide for executives, managers, entrepreneurs, legal professionals, and corporate consultants. (shrink)

There is a long-running debate among legal scholars regarding the propriety and enforceability of SEC attempts to mandate disclosures of antisocial or illegal corporate activities that do not materially impact a company’s financial statements. This debate was recently revived by the issuance of SEC Staff Accounting Bulletin 99, Materiality in Financial Statements (SEC 1999), which suggests that quantitatively immaterial information relating to unlawful transactions or regulatory non-compliance should be considered for disclosure. This issue has important implications (...) for the accounting profession, although it has generally been ignored in the accounting literature. This paper reviews legal and ethical considerations raised by the issue of qualitative disclosures, and also presents the results of a preliminary empirical test of the impact of such disclosures on financial statement users’ judgments. The results of this study indicate that investors consider the nondisclosure of immaterial illegal acts to be unethical, and reject suggestions that such information lacks moral intensity. The results also suggest that immaterial illegal acts have a significant effect on investors’perceptions of the quality of corporate management and the likelihood of investment in a company. This effect was more pronounced when the illegal act was combined with self-dealing on the part of corporate executives. (shrink)

The aim of the article is to show how the use of diagnostic methods allows identifying patterns and problems of corporations functioning, providing identification of directions and strategies for further development of their business. Theoretical and methodological basis of the research is a scientific works of scientists in the field of business diagnostics and strategic development, who studied diagnostics in the system of responding to business development problems, identifying areas for improving strategic management, financial statements of corporations of (...) Daimler Group (Germany), Tesla Motors (USA) and Toyota Motor (Japan) and own research results. The methodological basis of the study is a set of general and special methods used to achieve the goal of the research and includes: theoretical generalization and synthesis – in analyzing the content of scientific works on business diagnostics and strategic management; observation – to obtain primary information about the state of business of automotive companies in the world; indicator and integrated assessment – to assess the state of business and the effectiveness of strategic management of automotive corporations; information and logical analysis – when determining the issues and patterns of business development of corporations; problem-target method – to justify the choice of business development strategies; causation-result method – to obtain definitive conclusions. The results of the study of the state of business of the world's leading automotive corporations revealed the dependence of business efficiency on the degree of efficiency of strategic management of their activities, and identified types of strategies that will promote further development of automotive corporations – integrated, concentrated, diversified or globalized growth. The practical significance of the obtained results lies in their usefulness for strategic management for Daimler Group, Tesla Motors, Toyota Motor Corporation. (shrink)

An important part of responsible business practices is compliance with the law. This article details what actually happens when the laws of the host country fail to ensure adequate protection. The focus here is on land dispossession and loss of livelihood in relation to a gold mine project in central Ghana. How is it that a well‐known international company—Newmont—with its own corporate social responsibility (CSR) statements sets up a project in the year 2003 that displaces subsistence farmers from their (...) land without compensating in cash or with replacement land? The analysis identifies the factors that lead the company to not compensate farmers for their lost land: cost‐cutting, strict adherence to the law, CSR commitment that was new and not internalized, complexities of the Ghanaian land tenure system, peer pressure to preserve the status quo, selection of an “old‐school” CSR manager, and the inadequacy of Ghanaian mining law to account for relatively novel, “open‐pit” mining techniques. However, the specter of famine raised by civil society activism, the involvement of the International Financial Corporation, and a better qualified CSR team constitute another set of factors that lead to a comprehensive package of livelihood improvement measures. There is a contrast between the complexity, long‐term, and advanced type of assistance Newmont currently envisages and the backward, short‐term, formalism, and brutality of denying compensation for land back in 2003. This research is based on the extensive documentation Newmont makes available on its web site, interviews conducted in Ghana, and literature research. (shrink)

The audit profession’s technical and ethical standards require the application of professional skepticism throughout the financial statement audit process, as auditor skepticism is essential for detecting financial statement fraud and protecting the investing public. However, recent research suggests that audit supervisors often punish staff for exercising skepticism, presenting auditors with an ethical conflict between acting in their own self-interest and acting in a way that improves audit quality and protects the public. This research also suggests that supervisors who (...) reward appropriate skeptical behavior, regardless of the outcome, appear to develop staff that are more likely to detect and convey fraud red flags to their superiors. Building on this research, we use a case-based survey to identify the characteristics of audit supervisors (audit seniors and managers) who are more likely to reward appropriate skepticism, even if it ultimately does not identify a misstatement. We find that trait skepticism, especially suspending one’s judgment, positively drives the evaluations of professional skepticism in our setting. Also, we observe that when supervisors believe that their own audit partner will view the skepticism favorably, they “pay it forward” by rewarding their own staff who engage in skepticism. Our findings identify the characteristics that audit firms may want to develop and foster in auditors rising to supervisory levels. (shrink)

This article offers a re-examination of the theoi (‘gods’) heading which appears regularly on inscriptions in the ancient Greek world. Long noted, the heading has also long been passed over, often considered so formulaic as to lack much significance. This paper explores the consequences of taking theoi seriously as a reference to the divine, by investigating the function and meaning of the heading in the classical period. It makes use of two case studies, the financial building inscriptions from the (...) Athenian Akropolis and the epigraphic corpus from Oropos, to set out the most important characteristics of the formula. By placing the theoi heading in a broader context of other types of divine formula found on inscriptions, and by paying particular attention to the crucial aspect of the heading’s non-specificity, this article contends that the theoi or theos formula should not be understood as a prayer or appeal to the gods. Instead, it is a statement of presence of the divine and a recognition of divine power. (shrink)

This paper describes a presentation on ethics for accounting and business students. In 2001 and 2002, major corporate failures such as Enron and Worldcom, combined with questionable accounting practices, made ethics a paramount concern to persons working in business and accounting. While financial statement analysis and regulatory requirements are important technical topics, the issue of ethics provides faculty a unique and very appropriate setting to discuss deeper truths about doing business and living life well. This paper briefly describes the (...) development and assessment of one approach to presenting ethics built around a computerized slide show (PowerPoint). The goal of the presentation is to increase students’ understanding of the essential role of ethics to accounting and business. Following the presentation, students indicated a heightened recognition of the importance of ethics. Educators should do all that they can to encourage students to do the “right” thing, even in difficult circumstances. This encouragement may serve them well in school and later in their careers. (shrink)

_Relevance. _The role of internal audit in the entity's governance structure is constantly evolving. For a variety of reasons, internal auditors engage in an in-depth analysis of business processes to help ensure that these processes are working properly and effectively. One reason is that advanced entities expect internal auditors not only to verify compliance with laws and procedures, but also to suggest ways to make internal control more effective. However, often internal auditors in entities do not perform the function they (...) could and should perform. They focus on tax matters, financial statements, and assess compliance with procedures. Internal auditors are sent where problems arise to play the role of auditors to detect errors and report blame. In some entities, internal auditors are separated from business or operational problems, leaving them with the traditional function of verification [Daujotaitė et.al. (2015), Tarptautiniai vidaus audito profesinės praktikos standartai (2004), Rupšys et.al. (2007), Lakis (2017)]._ _ Scientists investigate internal audit from different angles, highlighting issues in the design and implementation stages of internal audit. Recently, the scientific literature has increasingly focused on the quality of internal audit and its evaluation. The collapse of banks also contributed to this, although in 2007 Bank SNORAS Internal Audit Service was awarded the title of "Oldest Internal Audit Service" by the Lithuanian Association of Internal Auditors. Although it is believed that poor quality audit is only due to insufficient qualification and professionalism of the auditor, this view can be negated by the list of factors determining the internal audit environment [Lakis (2007), Lietuvos Respublikos vidaus kontrolės ir vidaus audito įstatymas (2002), Pickett (2011)]. Modern performance and business management tools require employees to change their well-established work habits, but internal audit is still associated with the function of verifier for many managers and internal auditors themselves. The speed of adapting to changes in the environment depends on the success of operations and business, which requires managers to have a modern approach to their internal audit function. _Research aim:_ Identify and evaluate the determinants of the internal audit environment. _Research methods: _Systemic analysis of scientific literature and legislation and questionnaire survey. _Research results and conclusions_: Systematic analysis of the literature suggests that the following key factors exist in the internal audit environment: the legislative environment; regulatory enactments; business practices in the region. The first two factors are otherwise known as legal regulation. It should be noted that there are significant differences in the legal level of audit regulation between external, public and internal auditing. Most of the regulations are for external audit, and least for internal audit. An analysis of the legal literature and regulatory documents on internal audit suggests that only the public sector and, to some extent, commercial banks are required to comply with statutory and regulatory requirements that are binding on them. The activities of private sector internal auditors are not regulated by law, the functions of internal auditors are determined by the managers of the entity in which they work, and the standards are purely advisory. The beginning of the establishment of internal audit in Lithuania is considered to be 1995, when the Board of the Bank of Lithuania approved the Procedure of the Internal Audit Service of Commercial Banks and obligated commercial banks to establish internal audit services. The development of internal audit in the Lithuanian public sector was started only in 2000. In accordance with the 2000 February 7th Government of the Republic of Lithuania resolution no.127 On Internal Audit of State-owned Enterprises and Institutions, internal audit units or positions have been established within public institutions. 2002 January 1st this resolution was replaced by the Republic of Lithuania Law on Internal Control and Internal Audit. International Standards on Internal Auditing that set out the principles for conducting internal auditing are applied worldwide. The standards themselves are fairly generalized, setting only basic requirements and guidelines, as TVAI seeks to have the standards adopted by the widest possible audience. The Internship Regulations provide interpretations and more detailed explanations of the Standards of Professional Practice in Internal Auditing. Standardization and other supporting materials include methodological literature, studies and reviews, books, seminars, conferences and more. A systematic analysis of the literature indicates that sufficient legislation and regulations have been adopted, which has a positive impact on the internal audit environment. In order to assess the impact of business practices in the region on the internal audit environment, a questionnaire survey was conducted among the employees of the entities. It showed that a manager's attitude towards internal audit is strongly influenced by his education. Internal audit is acceptable to higher education managers because they are more open to change and open to change. Educated executives enable the internal auditor to be qualified and understand that internal audit requires an appropriate amount of knowledge. Respondents were also asked about their views on the internal audit process. When employees are not hostile to auditing and evaluating their work, it positively affects the internal audit environment, enabling internal auditors to play the role they would like to have in the company. (shrink)

The axioms adopted by Packard (1981) and Heiner and Packard (1983) for plausibility ranking of sets of statements are critically examined. It is shown that the informational requirement of the Heiner-Packard (1983) framework is much stronger than Packard's (1981) framework and hence both axiomatic setups are examined separately. A characterization of the leximin rule is provided in Packard's framework and the nonintuitive implications of the Heiner-Packard (1983) axioms are discussed. It is also demonstrated that in both frameworks, minor variations (...) of some of the axioms convert the characterization results into logical impossibilities. (shrink)

Baxter International Inc. is a global, diversified healthcare company based in Deerfield, IL. In 2011, Baxter had sales of $13.9 billion and employed approximately 48,500 people worldwide. Baxter is also recognized for its efforts toward environmental/sustainability performance and reporting. The company defines sustainability as ‘a long-term approach to including our social, economic and environmental responsibilities among our business priorities. Baxter’s efforts in this area align with and support our mission of saving and sustaining lives.’ This case study attempts to analyze (...) the progress of the company on its journey along the path toward sustainability. The formal environmental initiatives at Baxter were started in the 1970s. The acquisition of American Hospital Supply Corporation intensified the environmental challenges for the company. A new environmental course was set in the 1990s that led to the development of the State-of-the-Art Environmental Standards. At this time, the company started measuring its efforts and began publishing an Environmental Financial Statement in its annual public Environmental Report. In 2005, an executive level Sustainability Steering Committee was proposed and subsequently created in 2006 to accelerate the integration of sustainability within all facets of the organization. This case study articulates the evolution of Sustainability at Baxter Inc. As a result of its efforts, Baxter has received numerous awards and accolades for its efforts in sustainability performance and reporting. For example, in 2011 NewsweekMagazine ranked Baxter the 4th greenest company in the United States. Going forward, it would be noteworthy to see whether Baxter can keep up its momentum and continue to be a sustainability leader. (shrink)

Financial economics, and the calculations of time and uncertainty derived from it, are playing an increasingly important role in non-finance areas, such as monetary and environmental economics. In this 2001 book, Professors Le Roy and Werner supply a rigorous yet accessible graduate-level introduction to this subfield of microeconomic theory and general equilibrium theory. Since students often find the link between financial economics and equilibrium theory hard to grasp, they devote less attention to purely financial topics such as (...) calculation of derivatives, while aiming to make the connection explicit and clear in each stage of the exposition. Emphasis is placed on detailed study of two-date models, because almost all of the key ideas in financial economics can be developed in the two-date setting. In addition to rigorous analysis, substantial sections of discussion and examples are included to make the ideas readily understandable. (shrink)

BackgroundAs Canadian global health researchers who conducted a qualitative study with adults with and without disabilities in Uganda, we obtained ethics approval from four institutional research ethics boards (two in Canada and two in Uganda). In Canada, research ethics boards and researchers follow the research ethics norms of the Tri-Council Policy Statement: Ethical Conduct for Research Involving Humans (TCPS2), and the National Guidelines for Research Involving Humans as Research Participants of Uganda (NGRU) in Uganda. The preparation and implementation of this (...) qualitative research raised specific ethical issues related to research participant privacy and the importance of availability and management of financial resources.Main bodyOur field experience highlights three main issues for reflection. First, we demonstrate that, in a global health research context, methodological and logistic adjustments were necessary throughout the research implementation process to ensure the protection of study participants’ privacy, especially that of people with disabilities, despite having followed the prescribed Canadian and Ugandan ethics norms. Data collection and management plans were adapted iteratively based on local realities. Second, securing financial support as a key aspect of financial management was critical to ensure privacy through disability-sensitive data collection strategies. Without adequate funding, the recruitment of research participants based on disability type, sex, and region or the hiring of local sign language interpreters would not have been possible. Third, although the TCPS2 and NGRU underscore the significance of participants’ privacy, none of these normative documents clearly express this issue in the context of global health research and disability, nor broadly discuss the ethical issue related to financial availability and management.ConclusionsConducting research in resource limited settings and with study participants with different needs calls for a nuanced and respectful implementation of research ethics in a global health context. We recommend a greater integration in both the TCPS2 and NGRU of global health research, disability, and responsible conduct of research. This integration should also be accompanied by adequate training which can further guide researchers, be they senior, junior, or students, and funding agencies. (shrink)

The executive board of the Academy for Ethics in Medicine and two AEM working groups formulated standards and recommendations for clinical ethics consultation in 2010, 2011, and 2013. These guidelines comply with the international standards like those set by the American Society for Bioethics and Humanities. There is no empirical data available yet that could indicate whether these standards and recommendations have been implemented in German hospitals. This desideratum is addressed in the present study. We contacted 1.858 German hospitals between (...) September 2013 and January 2014. A follow-up survey was conducted between October 2014 and January 2015. The data of the initial survey and the follow-up survey were merged and evaluated. The statements of the participants were compared with the standards and recommendations. The standards of the AEM concerning the tasks of clinical ethics consultation are employed by a majority of participants of the study. Almost all of these participants document their consultation activities by means of protocols or entries in the patient file. There are deviations from the recommendations of the AEM working groups regarding the drafting of statutes, activity reports, and financial support. The activities of clinical ethics consultation predominantly comply with the standards of the AEM and recommendations for the documentation. The recommendations for evaluation should be improved in practice. This applies particularly for activity reports in order to evaluate the activities. Internal evaluation could take place accordingly. (shrink)

This paper argues that the metaphysics of financial performance in the conceptual framework employed by accounting standard-setters is incoherent: income and expenses cannot, as the framework holds, both be independent elements of financial statements, identified from underlying events, tested for recognition and measured by discrete acts, separately from the identification, testing and measurement of other elements and satisfy the analytical relationship between performance and position embraced by the framework. An alternative conceptualisation is proposed, under which income and (...) expenses are part of a wider system of classifying all changes in assets and liabilities, measured indirectly. This approach improves the metaphysical coherence, and thus the intellectual strength, of the framework project; while it leaves the measurement of financial performance unchanged, by emphasising the importance of classification, it invites further attention to the presentation of financial performance, with the potential for improving the usefulness of disclosures. (shrink)

The Sarbanes–Oxley Act of 2002 requires company executives to certify financial statements and internal controls as a means of reducing fraud. Many companies have operationalized this by instituting a sub-certification process and requiring lower-level managers to sign certification statements. These lower-level organizational members are often the individuals who are aware of fraud and are in the best position to provide information on the fraudulent act. However, the sub-certification process may have the effect of reducing employees’ intentions to (...) report wrongdoing. We suggest that subordinates with knowledge of a superior who committed a fraudulent act and certified that there is no fraud will feel less personal responsibility to report the act, thus, decreasing reporting intentions. Additionally, we suggest that if the fraud is discovered subsequent to the reports being filed with the Securities and Exchange Commission, employees will perceive lower management responsiveness to investigate the fraud, which will reduce intentions to report. Using an experimental approach, we manipulate two between-participant variables: the presence or absence of sub-certification by the transgressor and the timing of fraud discovery, either before or after the reports have been filed with the SEC. We find that when sub-certification is present, perceived personal responsibility and intentions to report were diminished compared to when sub-certification is absent. Timing of the discovery of the fraudulent act did not influence perceived management responsiveness or reporting intentions. Supplemental analysis shows that personal responsibility partially mediates the relationship between sub-certification and reporting intentions. Our findings suggest that audit committees and senior executives may want to carefully consider the costs and benefits of the sub-certification process. (shrink)

Write F(X) for the free group generated by X. We show that the statement for infinite sets is equivalent to the Axiom of Choice, whereas the statement is strictly weaker than the Axiom of Choice.

Suppose that the members of a group each hold a rational set of judgments on some interconnected questions, and imagine that the group itself has to form a collective, rational set of judgments on those questions. How should it go about dealing with this task? We argue that the question raised is subject to a difficulty that has recently been noticed in discussion of the doctrinal paradox in jurisprudence. And we show that there is a general impossibility theorem that that (...) difficulty illustrates. Our paper describes this impossibility result and provides an exploration of its significance. The result naturally invites comparison with Kenneth Arrow's famous theorem (Arrow, 1963 and 1984; Sen, 1970) and we elaborate that comparison in a companion paper (List and Pettit, 2002). The paper is in four sections. The first section documents the need for various groups to aggregate its members' judgments; the second presents the discursive paradox; the third gives an informal statement of the more general impossibility result; the formal proof is presented in an appendix. The fourth section, finally, discusses some escape routes from that impossibility. (shrink)

The growing reliance on non-governmental independent regulators in many social and economic domains, including corporate financial reporting, has brought to the fore concerns over their regulatory accountability. This study looks at one aspect of the regulatory due process-regulatory impact assessment (IA). Drawing on the analytical framework developed by Bovens (Public accountability: a framework for the analysis and assessment of accountability arrangements in the public domain. CONNEX papers, Research Group 2, Democracy and Accountability in the EU, 2006, Eur Law J (...) 13(4): 447–468, 2007), we evaluate the contribution of IA as an instrument for enhancing regulatory accountability in the context of the Financial Reporting Council, an independent regulator for the accountancy profession in the UK. The study’s findings suggest that, despite an increasing level of sophistication in the manner in which IA is used within FRC, the contribution of IA to regulatory accountability remains limited. Specifically, there are concerns as to whether IA is used to achieve a transparent and fair regulatory process or simply to maintain an image of good governance and justify policy decisions that would have been made even in the absence of IA. (shrink)

Nowadays, most loan transactions are contracted by using the exponential discounting as the underlying standard economic model to value this type of financial operations. In a framework of absence of fees to be paid by the borrower, the interest rate of the exponential discount function is, moreover, the true interest rate of the operation. Nevertheless, there exist a set of circumstances which make this identity false. Among others, these characteristics are: the use of linear discount as the underlying discount (...) function, splitting time when using a nominal interest rate, and the existence of fees in a loan at 0% interest rate. All these cases will be analyzed in this paper in the context of the so-called quick loans. (shrink)

This paper argues that research on the business case for corporate social responsibility (CSR) must account for the path dependent nature of firm-stakeholderrelations, and develops the construct of stakeholder influence capacity (SIC) to fill this void. SIC helps to explain why the effects of CSR on corporate financial performance (CFP) vary across firms and across time, therein providing a missing link in the study of the business case. This paper distinguishes CSR from related and confounded corporate resource allocations and (...) from corporate social performance (CSP), then incorporates SIC into a model that explains how acts of CSR are transformed into CFP through stakeholder relationships. This paper also develops a set of propositions to aid future research on the contingencies that produce variable financial returns to investments in CSR. (shrink)

The author attempts here to sketch the beginnings of an adequate interpretation of Plato's treatment of the tall and the equal in the "Phaedo". The paper consists of seven sections (roman numerals). In I-II, he (a) argues that any attempt to solve the puzzle stated at "Phaedo" 102 bc within the parameters there set down would "eo ipso" be an attempted theory of relational statements; (b) formulates that puzzle; and (c) shows that Frege solved it by denying its presuppositions. (...) In IV the author proposes an interpretation of Plato's solution: that the "than y" in "x is taller than y" modifies the "is." In V-VI he shows how this theory fits in with and sheds light on other aspects of the theory of forms: the connection to Non-Contradiction, The doctrines of degrees of reality and of immanent characters. Finally in VII he shows that the puzzle of relational statements as formulated in the "Phaedo" need not extend to "equal." the paper also includes (iii) a discussion of H-N Castañeda's interpretation of Plato's theory. (shrink)

This paper argues that research on the business case for corporate social responsibility (CSR) must account for the path dependent nature of firm-stakeholderrelations, and develops the construct of stakeholder influence capacity (SIC) to fill this void. SIC helps to explain why the effects of CSR on corporate financial performance (CFP) vary across firms and across time, therein providing a missing link in the study of the business case. This paper distinguishes CSR from related and confounded corporate resource allocations and (...) from corporate social performance (CSP), then incorporates SIC into a model that explains how acts of CSR are transformed into CFP through stakeholder relationships. This paper also develops a set of propositions to aid future research on the contingencies that produce variable financial returns to investments in CSR. (shrink)

Financial modelling is an essential tool for studying the possibility of financial transactions. This paper argues that financial models are conventional tools widely used in formulating and establishing possibility claims about a prospective investment transaction, from a set of governing possibility assumptions. What is distinctive about financial models is that they articulate how a transaction possibly could occur in a non-actual investment scenario given a limited base of possibility conditions assumed in the model. For this reason, (...) it is argued that the epistemic contribution of financial models is that of enabling the model users to envision exactly how a prospective investment could be achieved in various ways through a detailed understanding of the available transaction mechanisms. Thus, financial models provide information about the possibility of an investment scenario by showing how a specific transaction mechanism could result from a small set of initial possibility conditions assumed in the model. (shrink)

We explore how the Sarbanes–Oxley Act of 2002 created pressure for firms to take more visible and costly corrective action following the announcement of an earnings restatement. Building on theory about focusing events, the institutional effects of legislative change, and the agenda-setting role of the media, we propose that Sarbanes–Oxley created reactive normative pressure on firms that announce earnings restatements, increasing the likelihood of CEO replacement in their aftermath. We theorize that Sarbanes–Oxley changed the meaning—and therefore the impact—of media coverage (...) of earnings restatements. Our findings show that firm behavior after Sarbanes–Oxley did change in ways that are consistent with the intent of the legislation: to increase executives’ accountability for the reliability of their firms’ financial statements. Moreover, we show this change is a result both of the direct effect of the legislation on increasing CEO accountability as well as through intensifying the effect of the media spotlight on misconduct. (shrink)

The traditional recognition method of whitewash behavior of accounting statements needs to analyze a large number of special data samples. The learning rate of the algorithm is low, resulting in low recognition accuracy. To solve the aforementioned problems, this article proposes a method to identify the whitewash behavior of university accounting statements based on the FCM clustering algorithm. This article analyzes the motivation of university accounting statement whitewashing behavior, studies the common means of statement whitewashing, and establishes a (...) fuzzy set for the identification of university accounting statement whitewashing behavior. By calculating the fuzzy partition coefficient, the membership matrix of whitewash behavior recognition is established, and the whitewash behavior is classified through the iteration of the FCM algorithm. The comparative experimental results show that the recognition method has good recognition performance, low recognition error rate, and recognition accuracy of 82%. (shrink)

When faced with an ambiguous pronoun, comprehenders use both multimodal cues and linguistic cues to identify the antecedent. While research has shown that gestures facilitate language comprehension, improve reference tracking, and influence the interpretation of ambiguous pronouns, literature on reference resolution suggests that a wide set of linguistic constraints influences the successful resolution of ambiguous pronouns and that linguistic cues are more powerful than some multimodal cues. To address the outstanding question of the importance of gesture as a cue in (...) reference resolution relative to cues in the speech signal, we have previously investigated the comprehension of contrastive gestures that indexed abstract referents – in this case expressions of personal preference – and found that such gestures did facilitate the resolution of ambiguous statements of preference. In this study, we extend this work to investigate whether the effect of gesture on resolution is diminished when the gesture indexes a statement that is less likely to be interpreted as the correct referent. Participants watched videos in which a speaker contrasted two ideas that were either neutral or moral acceptable). A gesture to the left or right side co-occurred with speech expressing each position. In gesture-disambiguating trials, an ambiguous phrase was accompanied by a gesture to one side or the other. In gesture non-disambiguating trials, no third gesture occurred with the ambiguous phrase. Participants were more likely to choose the idea accompanied by gesture as the stimulus speaker’s preference. We found no effect of scenario type. Regardless of whether the linguistic cue expressed a view that was morally charged or neutral, observers used gesture to understand the speaker’s opinion. This finding contributes to our understanding of the strength and range of cues, both linguistic and multimodal, that listeners use to resolve ambiguous references. (shrink)

In New Zealand an advance directive can be either an oral statement or a written document. Such directives give individuals the opportunity to make choices about future medical treatment in the event they are cognitively impaired or otherwise unable to make their preferences known. All consumers of health care have the right to make an advance directive in accordance with the common law. When we consider New Zealand's rapidly ageing population, the fact that more people now live with and die (...) of chronic rather than acute conditions, the importance given to respecting autonomous decision-making, increasing numbers of individuals who require long-term residential care, and financial pressures in the allocation of medical resources, there would seem to be a number of compelling reasons to encourage individuals to write or verbalise an advance directive. Indeed the promotion of advance directives is encouraged. However, caution should be exercised in promoting advance directives to older people, especially in light of several factors: ageist attitudes and stereotypes towards them, challenges in the primary healthcare setting, and the way in which advance directives are currently focused and formulated. This paper considers some of the specific challenges that need to be addressed if the promotion of advance directives are to improve outcomes of patient treatment and care near the end of life. (shrink)

There are statements in the Qur'an that Satan has an influence on human will. In many verses, it is recalled that the devil and his followers are the greatest enemy of mankind, and they set up traps to mislead humans. The expressions that are related to these satans from humans and demons make people think that they are desperate against their traps and cause some questions about whether human beings have full freedom in their actions. As a matter of (...) fact, there are some interpretations in opposition to the freedom of will in the commentary sources regarding these verses. In some passages in the Qur'an it is emphasized that the traps set up by the devil are weak and can be overcome. This situation makes it necessary to evaluate the issue in terms of theology. As a matter of fact, the attempts of the devils to divert human freedom were handled along with the subjects of human freedom and responsibility in their actions in Kalam sources; and discussed in the light of human actions, the role of will in actions and freedom of will. In this study, how misguided actions of the devil and his followers affect the human will and whether this influence brings a limitation to the free will; will be discussed together with the relevant theological discussions. (shrink)

In his foreword to the Philosophical papers by Hans Hahn, Karl Menger mentions a controversy about the possibility or impossibility to speak about language within the Vienna Circle in the early 1930’s. He then adds: “Waismann proclaimed that one could not speak about language. Hahn took strong exception to this view. Why should one not – if perhaps in a higher-level language – speak about language? To which Waismann replied essentially that this would not fit into the texture of Wittgenstein’s (...) latest ideas.”1 Thanks to the publication of the protocols of the Vienna Circle by Friedrich Stadler in his book The Vienna Circle – Studies in the origins, development and influence of logical empiricism, we have access to some discussions within the circle in the years 1930 and 1931, that allow us a partial reconstruction of the controversy. In these minutes we attend a very lively discussion on the topic of ‘talking about language’. We would like to make more explicit the tenets of this controversy, starting from the discussions within the circle. We will then focus on the evolution of the positions of different members of the Circle, that reflect different attitudes towards this problem, that are expounded in articles published until 1936. Although its members strived to stay the closest, they could to the landmarks laid down by the Tractatus logico-philosophicus, some of its members broke with them in many respects. The need to admit the possibility of talking theoretically about language became more pressing as the works of Tarski and Godel began to exert an influence on the researches of its members. Two options emerged: talking about a language in another language (Hahn) or in the same language (Carnap). Hahn’s positions, despite their originality, stand close to those of Carnap, who presents in 1931 his meta-logical project. Disagreements with Waismann occured frequently. Neurath remained skeptical about such a development that could, according to him, lead back to metaphysical considerations. The protocols by Rosa Rand give us precious insights on the premises of this debate, symptomatic of the diversity of the positions and of the fruitfulness of the exchanges within the Vienna Circle at that time. However, this debate takes place in a broader setting, namely the discussion of the status of philosophical statements once the rejection of metaphysics is accomplished. The answers provided reflect strong dissenting currents within the circle. For Neurath, to conceive of philosophy as providing elucidations is mistaken. Science shall take the form of an encyclopedia, that contains heterogeneous discourses – exact formulated sentences, as well as piece of ordinary language – and is taken in a dynamic process. No discourse outside science can be accepted. For Schlick and Waismann, there is still room for philosophy as providing elucidations about language. For Carnap, the aim is to attain a logically suitable language for science; discussions in a natural language have only a provisional role, in order to attain an adequate language, in which the logic of science can be formulated. (shrink)

This Article sets out to initiate the development of a theory about the financial obligations that joint parenthood imposes. It considers what joint parents owe one another, separate and apart from any obligation they may or may not have as former spouses or partners. The Article suggests that parenthood is not merely a vertical relationship between an adult parent and a child, but also a horizontal relationship between adults who share it. It is further suggested that the relationship created (...) by joint parenthood should be a significant factor in defining adult family relationships and their legal implications. This proposal intends to contribute to promoting caregiving as a value, in law in general and in family law in particular. This Article focuses on the financial obligations joint parenthood imposes, based on the premise that caring for children and the costs of such care are the joint responsibility of a child’s parents. Childrearing costs as defined in this article refer not only to the actual money spent on providing children with food, healthcare, education, clothing, and the like, but also, and even primarily, to the personal costs that parenthood exacts from parents in terms of the impairment of earning capacity or career progress, and the loss of leisure time. The Article suggests that when co-parents do not share a relationship, either because they have separated or because they never had one, there are good reasons to be concerned about the way the costs of raising children are allocated between them. The Article addresses the failure of existing legal frameworks of property division, alimony, and child support to adequately deal with the concerns over the allocation of childrearing costs between parents, and calls for a new legal framework to be defined to address this issue. (shrink)