-
APPLICABLE ASPECTS OF ECONOMETRIC MODELING OF DYNAMIC RELATIONS
The paper is focused on the application of the statistical methods for the analysis of dynamic relationships. The relationships among the economic phenomena are realized not only in the distributions of the population, (static aspect) but also in the changes that have occurred into it with the time (dynamic aspect).
The thesis supported by the ...
The paper is focused on the application of the statistical methods for the analysis of dynamic relationships. The relationships among the economic phenomena are realized not only in the distributions of the population, (static aspect) but also in the changes that have occurred into it with the time (dynamic aspect).
The thesis supported by the authors is that statistical methods used for the analysis of dynamic relationships are both modern and powerful instruments for the researchers that allow to discover new characteristics of the interdependence among economic phenomenon but at the same time, their application is accompanied with many conditions that have to be known and taken into account.
The goal of the paper is to systematize the statistical methods for analysis of relationships based on time series data, and to point out their abilities in the advancement and enhancement of the analysis of the economic phenomenon. In order to achieve this goal, we have solved the following tasks: a) to describe the cross-correlation analysis; b) to characterize the distributed lag models (aka transfer function models); c) to study the vector auto regression (VAR) models; d) to describe the cointegration as advanced statistical method for the analysis of non-stationary time series.
The established results cover the advanced features of the dynamic relationship models: the interdependence between two (or more) time series; exploration of single relationships and distributed influence; the representation of multidimensional dynamic relationship; the survey of both long-term equilibrium relation and short-term interaction between the variables induced by the deviations from equilibrium state.
-
LEASE AGREEMENTS IN LESSEES’ FINANCIAL STATEMENTS ACCORDING TO IFRS 16 LEASES
A main requirement in financial statements is to faithfully present the information about their elements. This also applies to financial information regarding a lease. After the adoption of IFRS 16 Leases and its entry into force on January 1, 2019, it is of paramount importance to know and apply its requirements. The changes in this Standard ...
A main requirement in financial statements is to faithfully present the information about their elements. This also applies to financial information regarding a lease. After the adoption of IFRS 16 Leases and its entry into force on January 1, 2019, it is of paramount importance to know and apply its requirements. The changes in this Standard primarily concern the reporting of lease agreements and their presentation in the lessee’s financial statements.
The research objective is to present the main points when applying the IFRS 16 Leases in the lessee’s statements. To achieve the objective the following tasks have been set in the study: Clarifying the need for a new lease accounting standard, outlining the purpose and scope of the standard, establishing the right to lease agreement and distinguishing it from services, and its accounting and presentation in the lessee’s financial statements.
Studying and clarifying the main points of IFRS 16 Leases is related to the assumption that knowing them well is a prerequisite for their proper accounting and presentation in the financial statements and hence raising their credibility.
The results achieved in the course of the study are mainly of a practical nature and can be used when applying this new accounting standard in Bulgarian accounting practice.
-
INFLUENCE OF THE LEGAL FRAMEWORK
IN DETERMINING THE REQUIRED AMOUNT
OF TECHNICAL RESERVES FOR MOTOR THIRD PARTY LIABILITY INSURANCE
The problems arising from the recent global financial and economic crisis have led to a rethinking of many texts both in local laws and at Community level. New rules and regulations have gradually been introduced concerning all economic agents operating within the European Union. The introduction of these regulations in the field of insurance is ...
The problems arising from the recent global financial and economic crisis have led to a rethinking of many texts both in local laws and at Community level. New rules and regulations have gradually been introduced concerning all economic agents operating within the European Union. The introduction of these regulations in the field of insurance is associated with the adoption of Solvency II Directive. The implementation of the Directive in the Bulgarian legislation was realized with the adoption of a new Insurance Code, effective as of 1 January 2016 and Financial Supervision Commission’s Ordinance No 53 of 19 January 2017, which determines the order and method of allocation of technical reserves by the insurers working on the Bulgarian insurance market.
The study assesses the impact of the regulatory framework on the technical reserves of insurance companies offering Motor Third Party Liability Insurance. It outlines the problems that insurers have to deal with and the effect that the methods, used for calculating the required amount of technical reserves, have on the insurance company’s balance sheet.
The study has shown that there are differences in the methodologies described in the Solvency II Directive and Ordinance No 53 of Financial Supervision Commission. They concern the valuation of insurance companies’ assets and liabilities, the recognition of cash flows and the treatment of insurance income and expenses. Therefore, legislative changes are needed to synchronize the requirements of Bulgarian legislation with the European Directive Solvency II, with a view to optimizing the amount of technical reserves for Motor Third Party Liability Insurance.
