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In order to improve the effect of injection–production coupling development to improve crude oil recovery in complex fault-block reservoirs, we carried out a physical simulation experiment based on a sandpack model of transforming water-driven development into injection–production coupling development and quantitatively evaluated the influence of rounds of injection pressure coupling on the crude oil mobilization in reservoirs with different permeability levels and on oil recovery. Meanwhile, the characteristics of residual oil were studied via a numerical simulation method. The mechanism of increased oil production via injection–production coupling development was revealed by analyzing the water and oil contents, formation pressure, and streamline fields through the establishment of mechanism models. The results of the physical experiment show that injection–production coupling can improve the recovery effect of medium- and low-permeability reservoirs by 55.66%. With an increase in the injection pressure, the oil recovery percentage of the low-permeability sandpack model at 20 MPa is 100%, and this study finds that injection–production coupling is the main way to develop the recoverable oil in a low-permeability reservoir. The numerical simulation results show that among the four remaining oil distribution types (interwell-enriched, low-permeability zone-enriched, well network imperfection, and mismatch between injection and production), the interwell-enriched type of the remaining oil reserves accounts for the highest proportion (48.52%). The simulation results of the mechanism model show that water-driven development easily leads to streamline solidification, resulting in ineffective circulation of the injected water. Compared with conventional water-driven development, the pressure propagation range is significantly increased in injection–production coupling development. The reservoir streamline distribution is more continuous and uniform, and the flooding wave is wider in volume and range. This research provides a theoretical basis for the injection–production coupling technology policy in complex fault-block reservoirs. [ABSTRACT FROM AUTHOR]

The activities of business entities are conducted in conditions of uncertainty, which leads to the emergence of various types of business risks. The accounting system plays an important role in the information provision of risk management. Reliable accounting data can be a reliable source of information when making decisions on economic risk management both by the managers of the enterprise and by other parties interested in its activities. The article is devoted to the study of the accounting provision of capital reserves as a risk management tool for the protection of the capital of the enterprise. In the classification of capital reserves, an additional feature is distinguished by the identification of risks for the management of which the reserves are formed. It has been established that the risks of enterprises are the subject of the formation of reserves, and therefore it is advisable for the enterprise to create specific types of reserves that are necessary to cover the types of risks that are inherent in its activities. [ABSTRACT FROM AUTHOR]

Background: The widespread use and misuse of antimicrobials are the major driving factor for antimicrobial resistance (AMR) that threatens the health of human beings globally. Thus, monitoring antimicrobial consumption at national level is crucial to prevent and contain AMR. Nevertheless, there is no well-established system for recording and reporting of antimicrobial consumption in Ethiopia. Hence, the national antimicrobial consumption survey was conducted to generate evidence for decision-making on the appropriate use of antimicrobials in Ethiopia and tackle AMR. Methods: All imported and locally manufactured antimicrobials from 2017 to 2019 were from the Ethiopian Food and Drug Authority and local manufacturers database, respectively. Data were collected and analyzed descriptively in accordance with the World Health Organization (WHO) Anatomical Therapeutic Chemical (ATC) and defined daily doses (DDD) classification and methodology. Results: The average DDD/1,000 inhabitants for all antimicrobials was 15.36. The DDD/1,000 inhabitants fell down sharply from 37.03 in 2017 to 4.30 in 2018, before slightly rising to 4.75 in 2019. The majority of the consumed antimicrobials were comprised of oral antimicrobials (98.6%), while parenteral antimicrobials made up 1.4%. Tetracyclines (35.81%), fluoroquinolones (20.19%), macrolides (13.92%), antiretrovirals (10.57%), and cephalosporins (9.63%) were the most frequently consumed classes of antimicrobials during the three years period. About 75.83% of the consumed antimicrobials fall under the WHO AWaRe classification and 67.87% of antimicrobial consumption was from the WHO Access class medications, with Watch and Reserve classes accounting for 32.13% and <1%, respectively. Similarly, about 86.90% of the antimicrobials fall under the Ethiopian AWaRe classification, with Access, Watch, and Reserve accounting for 87.73%, 12.26%, and <1%, respectively. Conclusion: Due to the peculiarities of our settings, our findings may have some similarities and differences with similar studies from other countries. Hence, we recommend for all concerned bodies to work collaboratively to improve monitoring of antimicrobial consumption at different levels of the Ethiopian healthcare tier system. Future work is necessary to establish a strong system of reporting of antimicrobial consumption patterns in Ethiopia. [ABSTRACT FROM AUTHOR]

Calculating and accounting only for current tax is not sufficient if, due to accounting policies or legal provisions, the tax value of assets and liabilities is different from their book value. Profits or losses are shown in the profit and loss account, while some gains or losses (other than those shown in the profit and loss account) are shown in reserves or retained earnings. To the extent that the taxation of certain profits or the deduction of certain tax losses is deferred to future periods, as well as in situations where some amounts shown in the reserve accounts or retained earnings are to be taxed in the future as a result of provisions in tax legislation, a deferred income tax liability must be recognized in the accounts. The transition to IFRS has led to the recognition of deferred taxes, receivable or payable, depending on the situation of each entity, in the profit and loss account, the retained earnings account or the reserve accounts. [ABSTRACT FROM AUTHOR]

This paper investigates the shortcomings of the AISC 360–22 and Eurocode 3–22 provisions for calculating the plateau and lateral-torsional buckling (LTB) flexural resistance of thin-web singly-symmetric steel I-section members with the larger flange in compression. In addition, the paper proposes and evaluates corresponding newly recommended AISC 360 procedures, which eliminate the tension flange yielding (TFY) limit state check and implement a more mechanistically-based solution accounting for the inelastic reserve strength associated with flexural yielding in tension. The recommended procedures incorporate other recently proposed improvements to AISC 360, solving substantive LTB overprediction problems for certain types of built-up I-section members. The results from six large-scale experimental tests, associated finite element analysis (FEA) simulations, and parametric FEA simulation studies are considered. The results demonstrate improved accuracy and substantial gains in the predicted strengths by the recommended procedures relative to the AISC 360–22 and Eurocode 3–22 calculations for a significant range of geometries and loadings. In addition, the recommended methods address LTB overprediction problems exhibited by AISC 360–22 for a limited range of the member types studied. • Experimental evidence shows current flexure design codes can be overly conservative. • Accounting for tensile yield in flexure can result in substantial strength gains. • Codes do not calculate the true stain distribution for larger flanges in compression. • Experimental evidence shows current flexure design codes can overpredict capacity. • Improvements can be made to the design codes through simple modification. [ABSTRACT FROM AUTHOR]

The western Baltic Sea cod (WBC) stock is at historically low levels, mainly attributed to high fishing pressure and low recruitment. Stable stock assessment metrics suggested recovery potential, given appropriate fisheries management measures. However, changing environmental conditions violate stability assumptions, may negatively affect WBC, and challenge the resource management. The present study explored 42 years of changes in WBC biological parameters. WBC body condition gradually decreased over the last decades for juveniles and adults, with a rapid decrease in recent years when a single cohort dominated the overfished stock. The hepato-somatic index and the muscle weight decreased by 50% and 10% in the last 10 years, respectively, suggesting severely decreasing energy reserves and productivity. The changes in energy reserves were associated with changes in environmental conditions (increase in bottom water temperature, expansion of hypoxic areas during late summer/autumn), and changes in diet composition (less herring). A key bottleneck is the warming and longer-lasting summer period when WBC, trapped between warmed shallow waters and hypoxic deeper waters, have to mobilize energy reserves to account for reduced feeding opportunities and thermal stress. Our results suggest that stock recovery is unlikely to happen by fisheries management alone if environmental trajectories remain unchanged. [ABSTRACT FROM AUTHOR]

This paper proposes a comprehensive methodology for determining the converter droop settings to ensure the voltage security in a multi-terminal direct current (MTDC) grid. The novelty lies in the introduction of the concept of over- and under-voltage containment reserves in analogy to the frequency containment reserves in AC systems. This not only gives a distinction of the contribution between the converters in rectifying and inverting modes, but also significantly facilitates the sizing of the necessary amount of reserves within their available headroom capacity of power. In particular, the constraints of converter outages, converter rating, and DC voltage deviations are all taken into account in the design of reserves. The effectiveness of the proposed approach is demonstrated by a contingency power flow analysis algorithm and EMT simulations of a four-terminal MTDC grid. [ABSTRACT FROM AUTHOR]

With the increasing share of variable and limitedly predictable renewable energy in power systems worldwide, ensuring reserve capacity to maintain the balance of supply and demand becomes more important. On the other hand, the development of the virtual power plant model (VPP) allows renewable sources and energy storage to participate in reserve service. This paper addresses the optimal reserve bidding strategy problem of a VPP comprising of renewable energy resources (RESs), energy storage systems (ESSs), and several customers. The VPP participates in balance capacity (BC), day-ahead (DA), and intra-day (ID) markets. The scheduling problem is formulated as a two-stage chance-constrained optimization model taking the uncertainty of RESs production, load consumption, and probability of reserve activation into account. The response of VPP after its reserve capacity is called and generated is also considered to increase the operational flexibility of VPP. The proposed model is implemented on a test VPP system, and the effects of RESs sizing, ESSs sizing, and the probability of reserve activation are analyzed. Results indicate that the proposed model can perform well under real-world conditions. [ABSTRACT FROM AUTHOR]

Global warming is increasing the vulnerability of ecosystems, especially in peninsular Spain. Biosphere Reserves are internationally protected areas that seek to protect biodiversity and, at the same time, promote sustainable development. Evaluating these protected areas is essential to verify environmental changes and establish priorities in their management. In this work, we have studied the time trends of NDVI in the high mountain Biosphere Reserves of Spain from 2001 to 2016 to check if the trend patterns are associated with some environmental variables. Significant differences were found between NDVI trends and high mountain Biosphere Reserves. Firstly, significant positive trends in NDVI were observed when analysing both reserves together. However, significant differences were found between the two reserves. The Ordesa-Viñamala Reserve shows higher positive NDVI trends and lower negative trends, while this pattern is reversed in Sierra Nevada. We observed how the fluctuations in temperature and drought due to climate change have already negatively affected the Mediterranean reserve (Sierra Nevada). In contrast, the alpine reserve (Ordesa-Viñamala) maintains positive NDVI trends. This study helps to close the gap in information related to Biosphere Reserves, which gives value to the work that is being carried out by the local communities that make up them, generating statistically significant results that Biosphere Reserves are protected areas that help us understand how to manage and govern socioecological systems sustainably. • The study assesses NDVI trend in the Spanish high mountain Biosphere Reserves. • We analysis the association between NDVI trends and environmental variables. • Significant differences in NDVI trend frequency found between the reserves. • Climate change is having effects on reserves NDVI trends. • Trend data is key to ensuring reserves take into account in political decisions. [ABSTRACT FROM AUTHOR]

The complex pattern of gold production in Canada, which differs from the classic Hubbert´s curve, is modeled, and a short-term forecast is made, via the Fundamental Equation of Mineral Production (FEMP). For intervals of time with a variable production to reserves ratio, a discrete piecewise version of the equation updates the reserves and the Production to Reserves Ratio (PRR) by units of time. These piecewise linear portions of the PRR correspond to sub-cycles of rising and declining production embedded in the overall history of production. This version of the FEMP allows modelling of any pattern of mineral production at a universal range of scales. The Hubbert´s linearization indicates the official account of reserves underestimates the real amount of gold resources in Canada. The equivalence between the Hubbert's formula and the FEMP is introduced. The Hubbert curve is shown as a case study of the Fundamental Equation, featured as the product of a quadratic function of the cumulative production and a rational function of the PRR with time. The forecast for Canada's current gold production illustrates the metal output is about to peak with an all-time record high in the near future, unless new findings or influential global economic factors are introduced (i.e., a sharp and sustained growth of gold demand from regional markets), allowing an increase of the slope of the linear function featured by the PRR of the FEMP-based model. [ABSTRACT FROM AUTHOR]

In this paper we investigate how well banks manage their reserves. The optimal policy takes into account expected foregone interest on excess reserves and penalty costs for going below required reserves. Using a unique panel data set on daily clearing house settlements of a cross-section of Mexican banks we estimate the deposit uncertainty banks face, and in turn their optimal reserve behavior. The most important variables in forecasting the deposit uncertainty are the interbank fund-transfers of the day, certain calendar dates, and the interest rate differential between the money market rate and the discount rate--a measure reflecting the bank's opportunity cost of money holdings. For most banks, the model's prediction accord relatively well with the observed reserve behavior of banks. The model produces reserve costs that are significantly smaller relative to the case when reserves are set via a simple rule of thumb. Furthermore, alternative motives for holding reserves (such as liquidity and reputation effects) do not seem to explain why certain banks hold relatively large reserves. [ABSTRACT FROM AUTHOR]

Conservative financial policies are often criticized as serving the interests of managers rather than the interests of stockholders. We test this argument by examining the operating performance and other characteristics of firms that for a five-year period held more than one-fourth of their assets in cash and cash equivalents. Following the five-year period, operating performance of high cash firms is comparable to or greater than the performance of firms matched by size and industry or by a measure of proclivity to hold substantial cash. In addition, proxies for managerial incentive problems, such as ownership and board characteristics, are not unusual and do not explain differences in operating performance among high cash firms. We find that high cash holdings are accompanied by greater investment, particularly R&D expenditures, and by greater growth in assets. For firms that persistently hold large cash reserves, we conclude that such policies support investment without hindering corporate performance. [ABSTRACT FROM AUTHOR]

This paper shows that uncertainty about an emerging market's international reserves can affect the willingness of foreign investors to supply international credits. We illustrate the relevance of this concern for South Korea. Uncertainty has asymmetric effects. When the expected reserve position of an, emerging market is large relative to the potential bailout in bad states of nature, reserve volatility does not matter. However, the same amount of reserve volatility, can cause a large reduction in the supply of international credit if the private sector seriously downgrades its priors about repayment possibilities or becomes more pessimistic about the emerging market's reserve position. [ABSTRACT FROM AUTHOR]

Economists have long believed that, absent any public withdrawals of high-powered money, an unregulated, closed banking system can expand its assets and liabilities without encountering any shortage of reserves so long as its members act in concert. Notwithstanding its popularity, this "in-concert overexpansion" doctrine is inconsistent with standard theories of the precautionary demand for bank reserves. Unless these theories are themselves incorrect, concerns that complete removal of legal restrictions on the competitive supply of bank money must result in an unstable or indeterminate bank-money multiplier are misplaced. [ABSTRACT FROM AUTHOR]

We introduce a new, simple‐to‐compute test of independence of valuations and the number of bidders for ascending button auctions with symmetric, conditionally independent private values. The test involves estimating the expected revenue drop from excluding a bidder at random, which can be computed as a scaled sample average of a difference of order statistics. This object also provides a bound on counterfactual revenue changes from optimal reserve pricing or bidder mergers. We illustrate the approach using data from timber auctions, where we find some evidence that bidder valuations and the number of participants are not independent. [ABSTRACT FROM AUTHOR]

Copyright of Accounting & Finance / Oblìk ì Fìnansi is the property of Institute of Accounting & Finance and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article describes a method for estimating the U.S. government's overall programmatic credit risk exposure that recognizes the covariance across its guarantee programs. The government is urged to have a capital reserve for covering aggregate losses that is lower than the sum of the capital reserves appropriate for each separate guarantee program. Also presented is evidence of loss distributions of government-sponsored enterprises (GSEs) in the context of Fannie Mae and Freddie Mac.

The article discusses changes in the federal funds market and bank reserve accounting, particularly how this particular market would fair if contemporaneous reserve accounting were no longer used. Robert D. Laurent's proposed reverse reserve accounting (RRA) method and William Poole's own suggested method for calculating bank reserves are used here to determine how using either of these, instead of CRA, would change the federal funds market. The article concludes that using RRA and the U.S. Federal reserve's own reserve clearings did yield fewer forecast errors.

The article discusses money announcements, demand for bank reserves, and the behavior of the U.S. federal funds rate under a lagged reserve accounting economy during the 1980s. Daily changes in the federal funds rate within the statement week may be significantly positive or negative in weekly averages and are serially correlated. This study argues that a money announcement may convey information even if there is no uncertainty about the position of the supply curve for reserves. The model used to determine this point also creates predictable weekly changes in the funds rate.

The article focuses on the relevance of commodity prices, money surprises and federal reserve credibility on the economy. An examination of the distinction between manufactured goods and basic commodities is presented. The impact of money stock on the Federal Reserve target market growth rate is commented on, as well as the correlation between nominal interest rates and real interest rates. The article also contains tables with data about treasury bills and foreign currency and commodities such as gold, silver, and sugar.

This article presents a comment on the article "Money Supply Control and Lagged Reserve Accounting." The author examines the ability of the U.S. Federal Reserve to control the money supply under lagged reserve accounting. The author examines how manipulation of the interest rate can impact the demand for money and presents a model that is designed to test how effectively this method of control works. The author's findings suggest that authorities can control the money stock by manipulating that base control.

The article comments on the article "What Do Money Market Models Tell Us About How to Implement Monetary Policy?" by Richard G. Anderson and Robert H. Rasche, published in the November 1982 issue of the "Journal of Money, Credit, and Banking." The article discusses the role of the model for bank loans in determining money and reserves and the influence of interest rate volatility on monetary control. The authors provide a comparison between different models. Several tables and equations are provided to help illustrate the study.

The article focuses on the use of uncertainty measures in constructing policy forecasts of money market activity in the United States. The authors explain that policy forecast suggests efforts not only to condition forecasts on assumptions concerning short-run operating procedures but also for data-based portrayals of the degree and type of uncertainty facing the policy authority. The article goes over changes of the to the staff monthly model to gather structural characterizations of the transmission channels of reserves-orientated policies. Several tables and equations are provided to help illustrate the study.

The article provides information on a paper which discusses instrument choice for money stock control with contemporaneous and lagged reserve requirements. The authors suggest that the paper examined is the first to utilize a model which treats output and prices as endogenous and that incorporates rational expectations. The article discusses the importance of distinguishing between banking systems with contemporaneous reserve requirement (CRR) and lagged reserve requirements (LRR). The authors explain that this is important because monetary control is usually poorer with LRR than with CRR. Several equations are presented to help illustrate the study.

The article comments on the article "How Regulations Affect Monetary Control" by James L. Pierce, published in the November 1982 issue of the "Journal of Money, Credit, and Banking." The article describes the reserve requirement structure for members and time deposits and the influence of cash items in process of collection on the measurement of money. The author provides some details of the Monetary Control Act. The article also examines contemporaneous reserve requirements (CRR) which the author says would enforce a resource cost on depository institutions.

The article focuses on monetary policies in the United States. It states that in 1979, the Board of Governors of the Federal Reserve System shifted to a reserve aggregate approach. It examines the reserve aggregate procedure compared to a second multiplier forecasting model and concludes that it would allow the Federal Open Market Committee (FOMC) to achieve target ranges for monetary aggregate growth. It mentions that the conclusions assumed the FOMC would be able to achieve the level of controlled reserve aggregate consistent with money targets, and that the forecasting models would remain stable in a reserve aggregate control regime.

The article discusses commercial banks and their demand for bank reserve requirements. This research is based on a model that is different from other stochastic methods in that banks are expected to behave differently in regard to how they behave to fluctuations in reserve requirements and how much money banks have available for investing. Bank deposits are treated like random walks and a sample equation is presented of a Bernoulli process for calculating, in dollars, the random walk steps. A set of calculations is presented to demonstrate the expected daily penalty cost, taking into account customer deposits that are in reserve.

The article discusses how money stock can be controlled by the monetary authority through economic policy as a way to accomplish the goals of its intermediate targets. The root-mean-square deviation (RMSC) is used to assess the control of the intermediate targets. The optimal control framework used here is based on an econometric model that represents the economy and it is assumed that the model is linear. The version of the model that is used in this experiment is based on a short run money market model that was developed by the U.S. Federal Reserve Board.

The article presents a comparison of the contemporaneous reserve accounting (CRA) and lagged reserve accounting (LRA) methods and the different policies related to both. A theoretical model is used that considers how banks will behave given specific variables like cash in reserve management, the time between bank deposits, money supply, and borrowing by reserve banks. Many calculations are used to demonstrate the uses of CRA and LRA and the actual method for determining the appropriate amount of bank reserves.

The article discusses the money supply and lagged reserve accounting, particularly the motivation behind the system and the results of its early use. It has been suggested that this system of monitoring reserves has led to volatile money market rates and the use of certain open market operations. The impact of policies from the U.S. Federal Reserve on interest rates and the federal funds rate could impact the orientation of the open market operations. The article concludes that the Federal Reserve's reserve requirements have impacted interest rates and the way in which economic equilibrium is achieved.

The primary purpose of this paper is to reconcile the previous findings of discount rate endogeneity with the presence of discount rate announcement effects in securities markets. The crux of this reconciliation is the distinction between "technical" discount rate changes that are endogenous and "nontechnical" changes which contain some informative policy implications. In essence, we attempt to separate expected discount rate changes from unexpected changes, or equivalently, the expected component of discount rate changes from the unexpected component. If markets are efficient, the former should have no announcement effects while the latter may be associated with an announcement effect. Accordingly, the focus of the empirical analysis is on the interaction between discount rate exogeneity, the specific monetary policy regime, and announcement effects. In addition, we examine whether the behavior of these markets in the postannouncement period is consistent with the rapid price adjustment implied by market efficiency. [ABSTRACT FROM AUTHOR]

A microeconomic model of bank demand for borrowed reserves from the Federal Reserve is developed based upon constrained cost minimization. The derived demand function was found to correspond to behavior appropriate to the unknown switchpoint switching regression problem. When estimated, parameters generally conformed to theoretical expectations. The model was also tested for existence of switching regression behavior against a model similar to Goldfeld and Kane. Significance exceeded 99% in all cases. With the advent of reserve intermediate targeting, it appears especially necessary to reinvestigate the behavior determining this important source of reserves. [ABSTRACT FROM AUTHOR]

This paper argues that current discount window policy, coupled with non-borrowed reserve targeting of the Federal Reserve, makes the quantity of high-powered money endogenous. Examination of the advisability of this procedure in a stochastic environment is conducted using a general equilibrium financial model. It is concluded that the current policy reduces the destabilizing effects of shifts between various depository financial assets, but increases the effect of other asset portfolio shifts and aggregate supply disturbances. These results are consistent with the work of Poole inasmuch as the current debate over discount policy is a repackaging of the debate over interest rate or aggregates control for monetary policy. [ABSTRACT FROM AUTHOR]

The 1968 amendment to Regulation D of the Federal Reserve Code permits banks to carry forward one sequential reserve excess or deficiency into the next reserve accounting period. This was intended to reduce the weekly pressure on individual banks to adjust their reserve position. We find, instead, that the carry-forward provision gives individual banks an incentive to alternate weekly between reserve excesses and reserve deficiencies. Thus, the carry-forward provision tends to induce reserve position adjustments even in the absence of changes in the level of deposits. In addition, the carry-forward provision reduces the impact of interest-rate changes on the desired level of excess reserves. [ABSTRACT FROM AUTHOR]

The purpose of this comment (reply) is to point out that Kopecky's argument is based upon a very restrictive interpretation of what it means to impose FRS reserve requirements on nonmember banks and to defend the validity of my test method. Section I presents the most important elements of Kopecky's model (slightly modified by me)—the model which he employs in arguing against my test method. Section II points out the critical assumption upon which Kopecky's argument rests and explains why my test method is valid. Section III contains some final remarks. [ABSTRACT FROM AUTHOR]

The results of most recent econometric studies of the banking sector which employ quarterly data suggest that commercial banks close less than half the gap between their actual and "desired" levels of excess and/or borrowed reserves per quarter. At this rate, the banking system would take a full year to close nine-tenths of the gap. The length of this lag has been regarded as implausible by many researchers. Among the skeptics, many have expressed suspicion of the statistical techniques underlying the estimates. This paper investigates two commonly-proposed statistical sources of bias. The investigation reveals that one of them, temporal data aggregation (averaging over time), does exaggerate the lag. Nonetheless, even after correction for this bias, the estimates indicate a full adjustment period of a quarter or more. The primary purpose this paper is to explain the remaining lag. The major hypothesis of this study is that the lag in the aggregate is caused by lagged interactions among banks in different regions. As this paper demonstrates, when Federal Reserve Member Banks are disaggregated by region, estimated adjustment speeds rise dramatically. Moreover, the lag in the aggregate is well explained statistically by the impact of some regions' reserve adjustments on other regions. The more important of these interregional effects are identifiable and statistically significant, and they are shown to be useful in analyzing the timing of the regional impacts of monetary policy. [ABSTRACT FROM AUTHOR]

Beginning September 12, 1968, a set of changes in Regulation D went into effect, including two major ones which are referred to as the lagged accounting system. One of these sets required reserves in the current period (week) according to deposits two weeks ago, while the other specifies that a bank's "current" reserves consist of current reserve balances on deposit at the Fed and vault cash two weeks ago. It is the object of this paper to examine some implications of these two regulations for the control of the money supply via reserve aggregates. [ABSTRACT FROM AUTHOR]

The decade of the 1960's was a period of severe challenge to reserve-position management techniques of large commercial banks. Credit demands levied on banks increased rapidly throughout the decade, while traditional exogenous sources of loanable funds followed a more modest growth pattern. Moreover, large banks were apparently willing to commit themselves to an aggressive policy of accommodating the credit requests of their preferred customers. Under these conditions the differences in growth patterns between loan demand and exogenous deposits resulted in increasing pressure on banks' reserve-positions, and forced banks to an early and continued reliance on short-term reserve-asset markets as a means of making reserve-position adjustments. This investigation of reserve-position behavior during the 1960's rests on two key postulates of managerial strategy. On the one hand banks are assumed to anticipate the strength of pressure on their reserve-positions and to alter desired reserve-positions according to their expectations. Further, banks must be able to evaluate the permanence of short-run deviations between actual and desired reserve-positions and, when necessary, enter reserve-asset markets to restore equilibrium. Consequently, reserve-position adjustments will be strongly influenced by uncertainty over the permanence of a discrepancy between desired and actual levels and by the terms on which access to reserve-asset markets is gained. [ABSTRACT FROM AUTHOR]

A valuation approach is used to examine the effect of the LIFO inventory method on the relation between the market value of a firm's stock and the book value of equity. The paper develops three competing hypotheses that have different predictions regarding the relation between the LIFO reserve and the market value of equity. Results indicate a significant negative relation between the LIFO reserve and the value of equity, inconsistent with the pricing of LIFO reserves as unbooked assets, but consistent with a model that views the LIFO reserve as a measure of the effect of increases in factor input prices on firm value. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The purpose of this paper is to determine which of three alternative annual report disclosures of oil and gas reserves, namely historic capitalized costs, quantities, or discounted cash flows, contributes information content incremental to that provided by earnings per share. Information content is defined as the ability of a reserves disclosure to account for changes in common stock prices. Multiple regression analysis was used to evaluate the extent to which each of the three alternative reserves disclosures account for common stock returns after first recognizing the information provided by an earnings per share variable. The annual reports of 67 Canadian oil and gas exploration and development corporations were used to gather the data for each of the years 1983 to 1987. The results indicate that the earnings per share provides some significant evidence of information content. The capitalized costs disclosure, the quantities disclosure, and the discounted cash flows disclosure provide significant evidence of incremental information content in a pooled analysis of the five-year period; however, the results for any one disclosure method are not consistent throughout the analyses of each of the five years. [ABSTRACT FROM AUTHOR]

Our research confirms that book values possess significant ability to explain the acquisition values of oil and gas firms. It also indicates that RRA information provides incremental information over book values in determining acquisition values. However, when analyst information is more current than competing information, analysts' appraisals provide a significant incremental contribution beyond the explanatory ability of book values and reserve recognition data. Current analysts' information provides a stronger basis for predicting acquisition values than any model supplementing analysts' appraisals with additional information. This implies that current analysts' information captures all information sources and is consistent with the findings of "analysts superiority" in the extensive literature on earnings forecasts. [ABSTRACT FROM AUTHOR]

In this study we examine the accuracy and, bias in the accounting estimate of claim, loss reserves of 197 property-casualty insurers (985 insurer-years) during 1979-83. We also test for differences in accuracy and bias as a function of the size of the insurer's auditing firm. Claim loss reserves of property-casualty insurers are used because insurers subsequently disclose estimation error in the originally reported reserves, based on the actual claim losses paid. The accuracy of a reported reserve is defined as the absolute magnitude of the difference between the reported reserve and its ex-post realized value, while bias is defined as the signed difference between the reported reserve and its ex post realized value. Both accuracy and bias are evaluated relative to total assets and in materiality units (a materiality unit is 1.6 × [the, greater of assets or net premiums] ⅔ land errors that exceed one materiality unit are considered material). We demonstrate that claim loss reserve estimation errors in audited accounting information exceed materiality in over 90% of our sample. For errors that exceed, materiality, the average absolute error, determined with the benefit of hindsight, is over 17 times materiality and over 8% of assets. The magnitude of the error reflects both audit judgment and the high level of uncertainty inherent in the estimate. [ABSTRACT FROM AUTHOR]

This paper investigates the information content of two accrual variables which have been central to this debate: these are the current accruals variable, CA, and the noncurrent accruals variable, NA. Each is the aggregate of several accrual items listed separately in financial statements. The current accruals variable is defined here as cash from operations less working capital from operations, while the noncurrent accruals variable is working capital from operations less earnings. The sum of the current and noncurrent accruals variables is referred to as the total accruals variable, TA. This study investigates the relative information content of total accruals and cash from operations. It also considers separately the relative information content of noncurrent accruals and working capital from operations and of current accruals and cash from operations. None of the tests here considers jointly the relative information content of cash from operations, current accruals, and noncurrent accruals. This study differs from previous work by considering the implications of various hypotheses about information content of accruals on the joint behavior of stock returns at two information releases—the Wall Street Journal earnings announcement and the date the annual report arrives at the SEC. A model is introduced which structures the way information about the accrual and cash components of earnings is extracted from earnings when they are published in the Wall Street Journal and links the association between this component information and stock returns at the earnings announcement to the association between stock returns and component information released at a later date when the annual report arrives at the SEC. By restricting the parameters in this model, it is possible to test for the incremental information content of accruals over funds and for the incremental information content of funds over earnings. This study finds that the cash and total accruals... [ABSTRACT FROM AUTHOR]

This study investigates the relations between components of accounting earnings and stock returns by testing two hypotheses. The first is whether six commonly reported components of earnings provide additional information that is not contained in the earnings figure. The second is whether the additional information is associated with the time-series properties of the components. In addition, other results regarding the components' relations with returns and the components' time-series properties are discussed. [ABSTRACT FROM AUTHOR]

This paper conducts a capital market analysis of the oil and gas accounting method, "Reserve Recognition Accounting" (RRA). The Securities and Exchange Commission (SEC) first proposed RRA in Accounting Series Release No. 253 (ASR 253), issued in August 1978. In ASR 253, the Commission noted that "development of an accounting method based on a valuation of proved oil and gas reserves would provide significant useful information." To this end, the Commission required oil and gas firms to disclose RRA data as a supplementary item to their financial statements. [ABSTRACT FROM AUTHOR]

This paper shows that the spread between the 3-month Treasury bill and the federal funds rate has significant predictive power for the future change in the federal funds rate during the volatile nonborrowed reserves operating regime, but it has less and no predictive power during the borrowed reserves regime and the federal funds targeting regime, respectively. These findings suggest that Treasury bill rates forecast future federal funds rates most accurately when the Federal Reserve follows a well-defined rule that does not smooth the impact of shocks on the federal funds rate. [ABSTRACT FROM AUTHOR]

The article examines the problem of the coexistence of reserve currency and substitute dollar reserves (SDR) in the United States. It is explained that there are two important considerations regarding SDRs, which the coexistence problem does not acknowledge. The first consideration is that no attention is given to the question of just how large the amount of SDRs created ought to be. Another consideration is the "link" proposal, which is the idea to have new SDR allocations placed first in the hands of developing countries.

The article focuses on comparative merits of fixed exchange rates as compared to flexible exchange rates. It suggests that with a constant price level, equilibrium between the markets is ensured because of the interdependence of markets and the operation of budget constraints. It states that the margin of safety can be significantly increased with reserve pools that are at the disposal of a nation more or less automatically. It suggests that the stability of the world economy on the domestic economy can be imposed through short-run fixity of the parity.

The general absence of legal reserve requirements upon the reserves of non-U.S. banks offering dollar-denominated deposit facilities (hereafter Eurobanks) provides a unique opportunity for analysis of reserve determination by a fractional-reserve financial intermediary. This paper presents evidence that the reserve ratio in the Euro-dollar system is low and falling and is in fact determined by behavior which is consistent with the hypothesis that Euro-bank dollar deposits in U.S. commercial banks (excluding loans to home offices) are held as precautionary reserves. The demand for such loans to home offices largely determines their level. Since the theory of precautionary balances held by commercial banks is consistent only with the profit maximization principle of commercial banks' asset management, where commercial banks' responses to market forces determines portfolio behavior, we shall be concerned here primarily with the determination of Euro-banks demand deposit claims on U.S. commercial banks, exclusive of loans to home offices. Evidence reported below does in fact suggest that the behavior of liabilities to foreign branches of U.S. banks is not consistent with the profit maximization principle. [ABSTRACT FROM AUTHOR]