Estimation Theory in Financial Accounting as It Applies to Valuing Intellectual Property Assets

The abandonment option under various capital budgeting models are discussed in this study to illustrate the notion that present value of cash flows is often improperly estimated in financial models utilizing decision analytics in estimation theory as it applies in financial accounting. In this study, intellectual property rights and other intangible assets which are often not considered in the accounting estimation processes utilized in financial accounting. An investor/analyst often misestimates cash flow resulting in less-than-optimum capital budgeting decisions. This is especially a problem when actions to abandon for salvage and other similar decisions improve when the present value of intangibles and property rights are included in the decision process. This last statement is the goal of this study as well as to present well-founded processes to improve abandonment and similar decisions in capital budgeting decisions. The estimation problem in financial accounting is included in the analysis to accomplish this goal.

Reflected and doubly reflected BSDEs driven by RCLL martingales

We prove some new results on reflected BSDEs and doubly reflected BSDEs driven by a multi-dimensional RCLL martingale. The goal is to develop a general multi-asset framework encompassing a wide spectrum of nonlinear financial models, including as particular cases the setups studied by Peng and Xu [BSDEs with random default time and their applications to default risk, working paper, preprint (2009), arXiv:0910.2091] and Dumitrescu et al. [BSDEs with default jump, in Computation and Combinatorics in Dynamics, Stochastics and Control, Abel Symposia, Vol. 13, eds. E. Celledoni, G. Di Nunno, K. Ebrahimi-Fard and H. Munthe-Kaas (Springer, Cham, 2018), pp. 233–263] who examined BSDEs driven by a one-dimensional Brownian motion and a purely discontinuous martingale with a single jump. Our results are not covered by existing literature on reflected and doubly reflected BSDEs driven by a Brownian motion and a Poisson random measure.

Construction of new financial e-commerce model for small and medium-sized enterprises financing based on multiple linear logistic regression

This paper expounds on the development prospects of SMEs and E-commerce finance, and illustrates the significance of developing online finance. It also introduces the commonly-used research methods of the two kinds of financial models, such as multiple linear regression method and logistic regression method, and analyzes the reasons for the financing difficulties of SMEs. Currently, the high financing cost is the main reason for the financing difficulties of SMEs. Several reasons are account for the high financing cost. Among them, high financing cost,low-efficiency financial system,long financing cycle and the loan information asymmetry account for 35%, 21%, 19% and25% respectively. In addition, this paper clarifies the advantages and disadvantages of network finance and the necessity of developing online finance.

Construction of a New Financial E-Commerce Model for Small and Medium-Sized Enterprise Financing Based on Multiple Linear Logistic Regression

This paper expounds on the development prospects of SMEs and E-commerce finance, and illustrates the significance of developing online finance. It also introduces the commonly-used research methods of the two kinds of financial models, such as multiple linear regression method and logistic regression method, and analyzes the reasons for the financing difficulties of SMEs. Currently, the high financing cost is the main reason for the financing difficulties of SMEs. Several reasons are account for the high financing cost. Among them, high financing cost,low-efficiency financial system,long financing cycle and the loan information asymmetry account for 35%, 21%, 19% and25% respectively. In addition, this paper clarifies the advantages and disadvantages of network finance and the necessity of developing online finance.

Deep calibration of financial models: turning theory into practice

The calibration of financial models is laborious, time-consuming and expensive, and needs to be performed frequently by financial institutions. Recently, the application of artificial neural networks (ANNs) for model calibration has gained interest. This paper provides the first comprehensive empirical study on the application of ANNs for calibration based on observed market data. We benchmark the performance of the ANN approach against a real-life calibration framework that is in action at a large financial institution. The ANN based calibration framework shows competitive calibration results, roughly four times faster with less computational efforts. Besides speed and efficiency, the resulting model parameters are found to be more stable over time, enabling more reliable risk reports and business decisions. Furthermore, the calibration framework involves multiple validation steps to counteract regulatory concerns regarding its practical application.

The technology of wastewater sludge vitrification in comparison with other processing methods

Специалистами компании ООО «НТЦ «Экопромтех» разработана инновационная технология остеклования илового осадка сточных вод, позволяющая значительно сократить объем отходов и получить на выходе безопасный остеклованный материал для использования в строительстве. Приводится сравнение технологии остеклования с другими способами переработки осадка: депонированием, сбраживанием осадка в метантенках, сушкой, пиролизом, каталитическим и классическим сжиганием. В России более 90% образующихся иловых осадков депонируются. При сохранении этой тенденции неизбежен рост плеча перевозки осадка. Использование необработанного илового осадка в качестве удобрения повышает риск загрязнения почвы. Финансовые модели проектов с внедрением метантенков за счет продажи биогаза или электроэнергии не окупаются. В случае применения метода сушки для получения топлива из осадка расходуется практически столько же тепловой энергии, сколько содержится в конечном продукте. Поэтому себестоимость высушенного илового осадка как топлива не будет меньше стоимости природного газа, а с учетом других операционных затрат, включая доставку до потребителя, превысит стоимость газа в 2–3 раза. Пиролиз с получением ликвидных продуктов находится на стадии разработки, что потребует проведения большого количества исследований. Технология каталитического сжигания осадка без предварительной сушки не решает основные проблемы любого сжигания и приводит к определенным трудностям: риск эмиссии суперэкотоксикантов сохраняется, золу необходимо утилизировать, затруднено поддержание автотермического режима, катализатор изнашивается и требует замены. Технология остеклования имеет ряд преимуществ, готова к масштабированию и промышленному внедрению. The experts of Ekopromtekh R & D Centre, LLC have developed an innovative technology for vitrification of wastewater sludge that provides for reducing significantly the volume of wastes and obtaining a safe vitrified material to be used in construction. A comparison of the vitrification technology with other methods of sludge processing is given: depositing, sludge digestion in digesters, drying, pyrolysis, catalytic and classical incineration. In Russia, more than 90% of the generated sludge is landfilled. If this trend persists, an increase in the sludge hauling distance is inevitable. Using unprocessed sludge as fertilizer increases the risk of soil contamination. Financial models of projects that envisage using digesters and selling biogas or electricity do not pay off. In case of using the drying method to obtain fuel from sludge, almost the same amount of thermal energy is consumed as the final product contains. Therefore, the cost of dried sludge as a fuel will not be less than the cost of natural gas, and taking into account other operating costs, including delivery to the consumer, will exceed the cost of gas by 2–3 times. Pyrolysis to obtain marketable products is under development and involves a lot of research. The technology of catalytic incineration of sludge without preliminary drying does not solve the main problems of any incineration process and causes certain difficulties: the risk of emission of superecotoxicants remains; the ash must be disposed of, the autothermal regime is difficult to maintain, the catalyst wears out and requires replacement. The vitrification technology has a number of advantages, it is ready for scaling and industrial implementation.

Islamic Finance and Economic Development: The Impact of the Islamic Finance Sector on Indonesia’s Economic Development

The re-existence of Islamic economics on the surface of the earth makes a major contribution to the new economic system, with new models and innovations that are applied according to the conditions it goes through without reducing the values that must be implemented in the Islamic economic system. Although it can be understood that this Islamic economic system is not a new thing, but has experienced a new history in the modern era This research aimed to describe the models and applications of sharia-based financial models in the economy, Islamic finance models that are able to promote equitable development, and the impact of the Islamic finance sector on economic development. This was qualitative research with document analysis. The results were financial system in Islam has an impact on economic growth, especially in Indonesia, it can be felt the level of difference between conventional economics and Islamic economics. In addition to the investment factor made by investors, the contract model that is applied bears the risk for both parties, because with a contract like this the level of prudence that must be carried out is more selective compared to other contracts. In addition to Islamic banking, non-bank financial institutions also have a very significant role in increasing economic growth. Among non-bank financial institutions that have an influence on economic growth are zakat, baitul maal wattamwil, waqf and others.