How accountant use Drone technology to achieve their task depends on the sectors or schedule of activities. In addition, drones are unmanned aerial vehicles (UAVs) that can fly remotely.
The global drone market predicts to increase from $26.3 billion in 2021 to $41.3 billion by 2026. Also, in 2020, both US and the UK used drones to deliver drugs during the COVID-19 pandemic (Appelbaum et al., 2020).
Drone technology has proven helpful in war zones and intelligence gathering and also in a civilian role, such as:
In Germany, there are limited zones outside protected areas with high urban density or people conglomerations.
Also, all EU Member States, including Norway and Liechtenstein.
Switzerland and Iceland are also expected to apply this regulation soon.
In United States for example, they used drone technology for their operation(Ovaska-Few, 2017).
In 2013, Poland passed a law allowing the commercial operation of drones, which led to the birth of Drone Powered Solutions.
South Africa that has entirely established drone regulations in place which was carefully integrated into existing aviation law.
Lastly, in Australia, Rio Tinto who has its facility in a remote area planned in 2016 to start using drone to monitor mine sites including the staff.
Companies that have used drone in their workplace and in others area of operations.
It was recorded that PwC completed its first stock count audit using drone technology. With the assistance of a drone, they were able to capture images at a coal reserve in South Wales and used them to measure the volume of the coal, based on the measurement of volume.
Amazon and Google are already testing ways to deliver packages with drones.
Facebook has started using drones to provide internet connections in remote locations.
Basin Electric’s utilization of drones has enhanced efficiency and safety while concurrently reducing costs.
Furthermore, Ford Motor Company filed a patent to start the use of drones for dead bateries. The patent was filed on 3rd February, 2017 and circulated on March 8th, 2022, and assigned serial number 11271420.
How Accountant Use Drone Technology to the Accounting Profession.
Source: Naira Technology
With the help of drone technology, however, accountants can now complete their work in a shorter amount of time. Technological advancements have significantly changed the accounting and auditing profession in recent years.
In 2017, the emergence of drone technology has revolutionized the accounting and auditing profession. Drones have opened up new possibilities for accountants to perform their tasks more efficiently and effectively.
Emerging technologies like AI, blockchain, big data, the IOT, and drone technology have revolutionized accounting profession (Qasim et al., 21).
For example, accounting and audit firms that work with clients in mining and inventory can utilize drone technology to take thousands of pictures and measurements of a site (Ovaska-Few,2017).
Also, this can aid in accurate assessments of holdings, making tasks like physically measuring coal a thing of the past. An estimated volume can be obtained in less time with just a two-meter GPS Tracking pole.
What are the Benefits of Drone Technology to the Accounting and Audit profession.
Perform physical inventory: Drone could recount inventory if required-data feed repeatedly into audit app that re-performs the process. Using drones to automate livestock inventory count reduced count time from 681 hours to 19 hours (Qasim et al., 21).
Accuracy: Produce accurate data that can be relevant for future forecast and planning. It depend on how accountant use drone technology to collect insight into the condition of assets. This is faster, cheaper, safer and more accurate than traditional methods (Johnson, 2022).
Save Cost: Drones may save money for accounting clients, who can use them for stock takes, mapping, safety monitoring and to inspect bridges and building.
Productivity: It can enhance productivity
Also, Reduce the risk of injury: he benefit in health and safety as the need for someone to climb over the coal pile are removed.
Speed: Helps speed up some business and accounting processes.
Monitoring strategies . Help monitor staff, operation and some dangerous zone. For instance, drones can assist the firm or staff to take account area difficult to reach.
Storage of Long-term data: Moreover, drone methods allow for storage of long-term data. This is useful to account for physical factors (like weather, light conditions and geomorphology of the beach) for more spatio-temporal analysis.
Automate and accelerate repetitive accounting tasks (Qasim et al., 21).
The technology produces massive amounts of data that require interpretation and translation into meaningful information for informed business decisions.
Also, as accountants keeping up to date with new technologies and understanding their potential to enhance efficiency and effectiveness is essential. Developing the necessary skills to interpret and present data will enable them to add value to their employers. Since the drones technology are control by expert . However, drones are prone to making mistakes just like any other technology, which is why one can exempt them from errors.
Furthermore, competent accountants who are conversant with latest technology, play a crucial role in helping companies thrive and maintain a competitive advantage. It is imperative that organizations have skilled accountants on their team to achieve these goals.
Implications of How Accountant use drone Technology to the Accountants and Auditors
Be part of the at least 95% that will accept this new technology if they must prepare for the future.
Develop a new skill that is all-encompassing for them to be relevant every time and drive the development of accounting profession.
For companies to successfully transform, there will be a great demand for individuals with fundamental knowledge and expertise. For instance, such individuals must possess the necessary skills and understanding to support the company’s transformational goals.
Also, become a consultant in the field to remain relevant and being in change of the world where we live by data.
Become a strategic thinker.
Apply professional judgement whenever is necessary and obtain a better results
Establish Drone-focused department that enable accounting firms to handle all matter related to drone.
Check the impact of drones on client’s business operations.
Lastly, it is vital for every accountant or auditors to be familiar with the present drone regulations in their countries.
In this article, the writer examined how accountant use drone technology and to achieve their work on daily basis. Similarly, drones can improve the accuracy and efficiency of audits. However, how they can use it to collect data and perform inspections in hard-to-reach areas.
Consequently, the article highlighted the potential impact of commercial drones on the accounting profession, with predictions that this technology will revolutionize traditional accounting procedures (Ovaska-Few, 2017). Accounting professionals and academics need to recognize the significance of drone technology and patronize the suppliers as it is here to stay. In addion, the sooner we adapt to this technology and use it to their advantage, the better. Accountants and auditors are condition to embrace this new technology and see it as an improvement to their jobs instead of threat.
E-Collection is electronic collection of government revenue. Therefore, E-Collection through Treasury Single Account received new development since inception.
However, some of the improvement to e-collection are in line with Central Bank of Nigeria (CBN) circular of 10th December 2020.
New Development of E-Collection/TSA implementation in Nigeria
1. New TSA cost of E-Collections for payer and Ministries, Department and Agencies (MDAs). The charges are grouped into two.
(A). Transaction charges borne by the payer. i) If the payment is received through Point of Sales (POS), it will attract N150 plus 0.50 per cent of the amount being paid subject to a maximum of N1, 000 per transaction.
ii). If payment is received through other channeled, it attracts N150 exclusive of Value Added Tax (VAT)
(B). Transaction charges borne by the MDAs.
(i) They provide the platform for collection.
(ii) They will process all data about the payment and the payer.
(iii) They transmit the data and replicate them and lastly
(iv) Fund sweeping. For this, stakeholder below is to receive fromPayment Solution Service providers (PSSPs) or Deposit Money Banks (DMBs) fund sweeping. This depends on who is playing the collection role for the MDAs. NIBBS is to receives 10% while Office of the Accountant General of the Federation (OAGF) to receives 2.5%.
2. New TSA sharing formula for collection cost received among the various stakeholders as follows:
3. The government link the revenue generating agencies to TSA portal through (PSSPS). PSSPs are companies appointed by government to collect TSA payments from ministries departments and agencies (MDAs).
As at today, payer has to initiate payment from the receiving agencies portal. The way to initiate is to get register or enrolled in the receiving agencies portal.
Requirement to Sign Up for E-Collection/TSA Platform
For E-Collection platform to be effective, these requirements are essential:
a. Provide Tax Identification Number (TIN) and certificate
c. Wait for account to be approved by the receiving agencies
Then, payer cab initiate payment from payer personal account in the receiving agencies portal
Payer will automatically transfer to TSA portal from the receiving agencies portal, for instance Remita
4. Time to Initiate Payment
Payer can only initiate Payment into TSA only when step 3 is being completed.
The addition of Etranzact, Interswitch to join SystemSpec (the operator of Remita) to collect government revenue.SystemSpec has acted as a sole PSSPS appointed by government to collect TSA payments from MDAs.
6. Electronic Payment Companies
The main electronic payment companies involved in TSA increased to four companies. They are Etranzact, Interswitch, SystemSpec and Nigeria Interbank settlement System (NIBSS).
Therefore, NIBBS ensures that all the relevant stakeholders comply with the framework and also communicate collection codes for remittance to PSSPs.
Ogbonna and Ojeaburu (2015) in their study recommended among others, that the government should strengthen Government Integrated Financial Management Information System (GIFMIS) module. Also, cover other area of interest in the national budget to achieve economic development. Moreover, more need to be done to ensure E-Collection are active in all MDAs.
Master program on international finance is for Master student in foreign universities. You are required to prepare/submit an individual report discussing the following:
Choose a Multinational Enterprise (MNE) listed on an internationally recognised Stock Exchange (including for example, London, Dublin, New York or Paris). You are required to:
a. Critically discuss two recent developments in the international financial environment which appear to have impacted on your chosen company’s recent performance and development. Analyse how these two developments are likely to impact on the company in the near future. (14 marks)
b. Discuss the following key elements of the MNE’s international financial and/or risk management strategy (and how they appear to have affected the financial performance of your chosen company): · Sources of finance · Dividend policy (14 marks)
c. With reference to your chosen Multinational Enterprise (and using the most recent annual report published), analyse the financial performance (in terms of profitability, liquidity, efficiency and investment) of the company in the two most recent consecutive financial periods (e.g. 2018/19 or 2019/20, ) using 8 different accounting ratios (prior year comparative figures will be available in the annual report). (32 marks).
(i) You must advise your tutor of your chosen multinational enterprise to ensure suitability for use and avoid duplication
(ii) It is advisable to choose your multinational enterprise and download the most recent annual report. This will facilitate your preparation and allow you to effectively participate in weekly class activities;
Master program on International finance Guidelines 1)
The assignment may take the form of an individual written word-processed briefing report of not more than 2500 words, including title page, contents page, in-text references and citations, but excluding tables, reference list and appendices
Part of Solution to the Question
Honda is a Japanese company that specialize in the manufacturing of automobiles, motorcycles and power equipment with headquarter in Tokyo, Japan (Honda, 2021a; Forbes, 2021). Honda made a net profit of ¥509,932 million and ¥695,444 million in 2020 and 2021 years respectively.
Honda is ranked 39 among the top 100 companies in the Fortune Global 500 list (Fortune 500, 2021). The financial performance and developments are analyzed, explained and outlined, including how it copes with the risks linked with its sources of finance and dividend policy.
2 Section A: Current developments
2.1 Development One—Covid-19 Pandemic
The covid-19 pandemic impacts the financial performance of Honda to the extent that its production activities were affected (Honda, 2021a).
2.2 Development Two—Chip Shortage
Honda was affected by the global microchip shortage. This caused Honda and other major brands to slowdown vehicle production and caused sales drop by 50%. This development made Honda to have low inventory and prompted their prices to rise (Hesketh, 2021). Over 100,000 vehicles were affected last years due to this chip shortage (Reuters, 2021).
Some forensic accountants choose to specialise in Alternative Dispute Resolution (ADR) due to their familiarity with both finances and the legal system. Business litigation can be a very expensive and costly. Generally, opposing attorneys will fight vigorously for their clients. When forensic accountants are engaged as EXPERT WITNESSES in business litigation, such fighting can drive up the cost of the expert witnesses and drive down the understanding of the forensic accountant’s work and, therefore, the client’s satisfaction with the forensic accountant.
In a typical business litigation scenario, the opposing attorneys may fight against providing information which the forensic accountant has requested in order to calculate damages or to perform a business valuation. Depending on the amount of rancor between the parties and level of antagonistic determination between the attorneys.
There are times he may have to perform the damage calculation or business valuation without all the relevant information he believes is necessary. In the absence of such information, the forensic accountant may have to make reasonable assumptions regarding the missing information. If there are differing assumptions by each side’s expert witness, significant differences in damage calculation or business valuation amounts may result.
In such situations, the parties often may expend significant time and incur significant costs in using these forensic accounting experts. Especially when there are significant differences of opinion between the two expert witnesses, the experts’ fees and attorney fees can be even higher. Both parties also may come away with confusion and misunderstanding regarding how the relevant damage amount or business’s value was determined.
This is because they may only speak with the expert retained by their attorney and must rely upon the deposition and/or courtroom testimony of the opposing expert without being able to ask their own questions. The use of alternate dispute resolution – such as mediation, arbitration, and negotiation – not only can reduce the cost of traditional business litigation, but also can help eliminate the uncertainty that comes from leaving the resolution of the dispute up to the Courts (judge or jury).
Examples of disputes that are prime candidates for alternate dispute resolution includes: • Business contract disputes • Shareholder/partner disputes • Employee termination disputes • Insurance claims • Royalty payment disputes • Patent/trademark disputes • Business merger and acquisition • Local disputes, • Global disputes,
How the role of the forensic accounting expert differ in Alternate Dispute Resolution (ADR) • First, the forensic accounting expert can be jointly retained by both parties as opposed to by just one party in traditional business litigation.
• Next, because of the joint retention of the forensic accounting expert, both parties are more cooperative and better able to share all the necessary information needed by the forensic accounting expert. Thus, there is also usually less of a need to make assumptions.
• Finally, the expert witness report can be openly reviewed with both parties. Because this is a joint retention, the forensic accounting expert can be more open and informative with both parties and stand ready to fully answer either party’s questions. This helps to eliminate confusion and lack of understanding regarding the damage calculation or business valuation and the forensic accounting expert’s process.
• Additionally, the cost for the forensic accounting expert will be less, because only one expert is retained instead of two, and because the cost of depositions and/or courtroom testimony can be eliminated.
The Role of the Forensic Accountant In Mediation A forensic accountant has a number of possible roles to play, which are discussed below.
Expert Accountant acting as a Mediator. Accountants may play a role in a dispute by acting as a mediator. For example, disputes involving business valuations, application of technical accounting standards or which require business acumen and experience in a particular industry or sector may benefit from having a mediator with the requisite expertise in these areas.
The Forensic Accountant’s role in calculating damages and attending the Mediation. In complex commercial disputes requiring an expert opinion on the quantum of damages, for example in a case whereby one party may have suffered a loss of profits following a breach of contract by another party, a forensic accountant may be retained as an independent expert to provide an independent assessment of the amount in dispute. In such a case the forensic accountant may be requested to prepare an expert report, attend a meeting of experts with an opposing expert, or advise their client on a range of their potential losses depending on a number of factors or assumptions. In mediation, the forensic accountant can provide a similar role, assisting a mediator in dealing with and understanding complex financial issues.
Forensic accountant role to serve as appointed receiver or monitor
Forensic accountant role as Consulting or testifying expert
Forensic accountant role as impartial neutral with specialized expertise
Forensic accountant role as Advisor to party during mediation
Conclusion The philosophy behind Alternative Dispute Resolution is to ensure that parties involve resolve their dispute without anyone of them feel aggrieved. ADR is a good mechanism to resolve disputes among individual and organisation both local and international level. The presenter believes and suggests to us that all avenues available within ADR be explored fully before approaching the court. Even now that so many cases are queuing in the court without definite date of conclusion, is an issue that need immediate action by the government.
Pay-as-you-earn is a tax deducted from employee salary account and remitted on or before the 10th day of the month following the month in which salaries were paid. See relevant sections of the Personal Income Tax Act (PITA). (S.81 of Personal Income Tax Act Cap P8 LFN 2011). S. for details
WHAT IS TAXABLE ENTITLEMENT (GROSS) OR GROSS EMOLUMENTS
This is the total amount your employer pay to you as salary including all benefits arising from employment.
It can be a inform of wages, salaries, allowances including benefits in kind, gratuities, superannuation and any other incomes derived solely by reason of employment.
All manner of allowance you earn, provided it’s not a re-imbursement of expense to you, is taxable.
Finance Act 2020, defined “gross income” as income from all sources less non-taxable income, tax-exempt items listed in Paragraph (2) of the Sixth Schedule and all allowable business expenses and capital allowance (finance-act-2020). This is addition to the Act.
For example, if you spend an amount for training outside your station and the money is refunded or reimburse through your payslip, it must be subjected to tax. All pay not intended to be taxed must not be passed through payroll. Pay like training cost, transport to attend training etc.
TAX RELIEF (TAX ALLOWANCE)
This is amounts that can be deducted from a person’s annual income to reduce the amount on which tax is paid. Or the amount of your income which is exempt from tax aside from other statutory deductions.
Consolidated relief allowance of N200, 000 or 1 per cent of gross salary or whichever is higher plus 20 per cent of gross salary.
Percentage of Gross Income Relief (PGI): This relief is graduated and it is based on your Gross income. The higher your income, the more relief you receive. PGI relief is currently 20%. For example, if your Gross income per annum is N5, 000,000 then your PGI would be N1, 000,000.
The tax law provides certain payroll deductions as tax exempt or non-taxable deductions. Tax exempt amount has to be removed from Gross taxable Income (earnings) before applying the tax rules to determine tax. The following deductions are not Taxable (.i.e. Tax Exempts):
Pension Deductions (employer 10% and employee 8% of Basic salary, transport and housing allowance).
National Housing Fund Deductions (Employee 2.5% of basic salary).
Life Assurance Payments (this is obtained from the employee life policy document and monthly premium payment receipt is sufficient evidence to earn the tax exempt. Section 33(3) of Finance Act 2020 added that any premium payment. stated that there shall be allowed a deduction of annual amount of any premium paid by the individual during the year preceding the year of assessment to an insurance company in respect of insurance on his life or the life of his spouse or of a contract for a deferred annuity on his own life or the life of his spouse (finance-act-2020). This is addition to the Act.
The National Health Insurance Scheme (Government 10% and employee 5% of basic salary) but employer 5% has not be implemented yet in the federal government MDAs due to Labour objections.
NIGERIA TAX TABLE
for pay-as-you-earn to be done, relief allowance and tax exemptions have been granted to work with, the balance of the income shall be taxed as specified in the tax table below.
Nigerian Payroll tax table comes in annual gross bands in six rows. Each band has a percentage tax value attached to it. The tax table rates must be applied to the Net Taxable Income to get Tax Payable.
Tax table and Rates from June 2011 tax year as see below.
TAXABLE INCOME (NET)
This is derived after deducting the following from Gross Taxable Income. Some are extracted from payslip.
Tax Exempts, and Relief (Tax Allowance).
Apply tax table to the net amount as stated above
NON TAXABLE INCOME
End of year award
Compensation for personal injury
Any compensation for loss of office or employment
Medical or dental expenses incurred by employee
Compensation for loss office or employment
(1) Section 36(2) of Finance Act 2020 is amended by substituting for subsection 2 with a new subsection “2”.
(2) Sums obtained by a way of compensation for loss of office, up to a maximum of N10,000,000, shall not be chargeable gains and subject to tax under the Act. Provided that any sum in excess of N10, 000,000 shall not be so exempted but the excess amount shall be chargeable gains and subject to tax accordingly.
Finance Act 2020 inserted section (3) and (4)
(3) Any person who pays compensation for the loss of office to individual is required, at the point of payment of such compensation, to deduct and remit the tax due under this section to the relevant tax authority.
(4) The tax so deducted shall be remitted within the time specified under the Pay-As-You-Earn regulations issued pursuant to the personal income tax Act.
In other word, monthly payments of Pay-As-You-Earn (PAYE) tax liabilities are to be made on or before the 10th day of the month following the applicable month (e.g. January tax to be remitted by 10th of February).
Assuming Senior Manager monthly payslip is as shown below. We look at how the statutory deductions were determined.
Taxable Income Calculation for an Senior Manager whose Gross Income is NGN 4.68 Million per annum
Below is the basis of Pay-as-you-earn calculation for a Senior Manager whose gross income is NGN 4.68 million per annum. The accountant has the responsibility to ensure that this PAYE is calculated accurately and deducted promptly
WHAT IS RESIDENCY RULE
Assuming the Senior Manager live in Rivers State but work in Abia State.
To apply residency rule, an employee’s PAYE is payable to the tax authority of the state of his/her residence. It is therefore the duty of the employer to deduct and remit it to the tax authority where the employee is resident.
If the employee is resident in Rivers State, the tax authority that is entitled to his pay-as-you-earn is the Rivers State Board of Internal Revenue.
PENALTY FOR FAILURE TO DEDUCT PAY-AS-YOU-EARN
In line with Section 74(1) of Personal Income Tax Act, 2011 states “ any person or body corporate who fails to deduct, or having deducted, fails to remit such deductions to the relevant tax authority within 30days. This will be from the date the amount was deducted or the time the duty to deduct arose. Such person shall be liable to a penalty of an amount of 10% of the tax not deducted or remitted in addition to the amount of tax not deducted or remitted plus interest at the prevailing monetary policy rate of Central Bank of Nigeria.
EXEMPTION OF MINIMUM WAGE EARNERS FROM PAYE/PIT
Section 37 of Finance Act 2020 “provided for minimum tax. The Act also provided for under the Sixth Schedule to this Act shall not apply to a person in any year of assessment where such person earns the National Minimum Wage or less from an employment (finance-act-2020)
BOOKS OF ACCOUNTS
By Section 12 of PITA 2011 stated that the keeping of books of accounts is very important. The Act stated that, if any taxable person fails or refuses to keep account, such a person shall be liable on conviction to a penalty of N50,000 for individuals and N500,000 for corporate entities.