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This paper proposes and illustrates a methodology to assess the economic cost of the sovereign risk finance instruments available to the Government of Ethiopia and its development partners for financing the shock-responsive scalability component of the Productive Safety Net Programme. The methodology involves: (i) specifying rules for when additional expenditures would be triggered in each woreda; (ii) specifying alternative risk finance strategies; and (iii) analyzing the costs of each risk financing strategy, including sensitivity and scenario testing of the results. The methodology is applied to a hypothetical set of rules for drought-responsive scalability, and a range of potential risk finance strategies.

The purpose of this paper is to contribute to theunderstanding and discussion of how the costs andbenefits of natural resource development are sharedacross society. This paper presents how IFC, as both aninvestor and a development organization, determineswhether benefits and costs are shared reasonably, and how this assessment influences IFC’s decision to invest ina particular natural resource project. the goal of the paper is to promotea broad, constructive dialogue across stakeholders—governments, investors, civil society, and others—around benefit sharing. The paper draws on IFC’s experience and presents anoverarching framework for multi-stakeholder benefitsharing, providing analysis and guidance for a range ofcomplex topics. The paper is intended to provide entrypoints for stakeholders of varying levels of familiarity with the issues to benefit-sharing assessment. The paper is not a definitive manual for all the issues coveredfor which more detailed, high-quality and excellentreferences and literature exists. This paper is organized along these broad areas of impact that IFC considers in the benefit sharing assessment:fiscal, economic, environmental, and social. The approaches IFC uses to evaluate benefit sharing arepresented in each area, along with some lessons learned. This is complemented by a discussion of key issues thatare topical in the field. Each chapter opens with a list of questions that can be used as a guide to assess the potential benefits and costs of an investment. As a result, there is a spectrum of what can be considered reasonable overall. However, there may be particular features of a benefit-sharing arrangement that stand out and can signal a risk to its legitimacy. Our aspiration is that this paper will complement as well as stimulate work by others that can enhance the collective knowledge and encourage dialogue.

IFRS 13 (2012) “Fair value measurement” is aimed to unify, in a single standard, all existing rules about fair value measurements. In this regulatory context, the present value, evaluative criteria of Level 3 hierarchy varables, has emerged as the most widely accepted financial technique both in professional field practice and issuing authority. This paper focuses on elucidating the criteria used by public accountants of present value technique implementation in Venezuelan context. The study is part of a qualitative approach, based on secondary information supported by expert’s opinion. It is concluded that the most common financial tool used, is Method-2 expected present value technique, for its construction the “capital asset pricing model” is used to get the discount rate. La NIIF 13 (2012) “medición del valor razonable” está orientada a unificar, en un único estándar, toda la normativa existente acerca de las mediciones realizadas a valor razonable. En este contexto normativo, el valor presente, criterio valorativo perteneciente a las variables del nivel 3 de la jerarquía, se ha erigido como la técnica financiera de mayor aceptación tanto en el ámbito de la práctica profesional como en el de los organismos emisores. Este documento se centra en dilucidar los criterios utilizados por los contadores públicos en la aplicación de la técnica de valor presente en el contexto venezolano. El estudio se enmarca dentro de un enfoque cualitativo, circunscrito a la modalidad documental, apoyado en la opinión de expertos. Se concluye que la herramienta financiera más utilizada es la técnica del valor presente esperado en su modalidad de método 2, para cuya construcción se emplea el “modelo de valuación de activos de capital” a fin de obtener la tasa de descuento. A NIIF 13 (2012), “medição do valor razoável”, está orientada a unificar, num único padrão, todo o regulamento existente a respeito das medições realizadas a valor razoável. Neste contexto normativo, o valor presente, critério valorativo pertencente às variáveis de nível 3 da hierarquia, erigiu-se como a técnica financeira de maior aceitação tanto no âmbito da prática profissional como no dos organismos emissores. Este documento se centra em elucidar os critérios utilizados pelos contadores públicos na aplicação da técnica de valor presente no contexto venezuelano. O estudo se emoldura dentro de um enfoque qualitativo, circunscrito à modalidade documental, apoiado na opinião de peritos. Conclui-se que a ferramenta financeira mais utilizada é a técnica do valor presente esperado em sua modalidade de método 2, para cuja construção se emprega o “modelo de valoração de ativos de capital” a fim de obter a taxa de desconto.

Running a business involves continuous growth. Such growth can be organic, stemming from resources created internally in the enterprise. However, in many cases an external development strategy is adopted, based on acquisition of other entities. Such an acquisition may involve creation of a capital group, within which each of the companies maintains its separate legal personality. However, if a capital group is not the optimal form for the given business activity, acquisition of another entity may take form of a business combination. In such case, assets and liabilities of the acquire are directly incorporated into the books of the acquirer. The overriding principle of accounting regulation is primacy of economic substance over legal format. Pursuant to this principle, economic transactions must be recorded in the accounting records in accordance with their economic nature1. In order to determine properly the economic nature of a business combination, an analysis must be performed of economic impacts of such a combination. Economic consequences for merging entities are described in the provisions of commercial law.

Contingent liabilities create management problems for governments. They have a cost, but judging what the cost is and whether it is worth incurring is difficult. Except in the case of contingent liabilities created by simple guarantees of debt, governments usually can incur contingent liabilities without budgetary approval or recognition in the governments accounts. So governments may prefer contingent liabilities to other obligations. (The uncertainty surrounding contingent liabilities can work differently. It is well known that PPPs create contingent liabilities, and the International Monetary Fund (IMF), the World Bank, and others often warn of the risks. The initial reaction of a cautious Ministry of Finance may be to seek to avoid all contingent liabilities.) Management problems also arise once a government has incurred a contingent liability. Projects need to be monitored to reduce risks if possible. Spending on contingent liabilities must sometimes be forecast, despite the difficulty.