Search Results (26)

The “Dana Gas” case is considered one of the pivotal cases in the development of the Islamic financial industry. The case raised concerns about the limits of legal certainty, particularly the judiciary’s right to exercise “ijtihad” (juristic interpretation). This study highlights the extent to which Islamic financial institutions adhere to their contractual obligations in good faith based on Shariah compliance. It also outlines how the judiciary preserves its inherent right to exercise due diligence in relation to protecting the public economic order and applying its authority in evaluating the practical application of Islamic finance contracts and instruments. Based on the dialectical approach, this article analyzes the case by presenting the background of the dispute and its legal dimensions, emphasizing the necessity of achieving legal certainty in the Islamic financial industry. This study also advocates for applying judicial jurisprudence in resolving disputes related to sukuk. Finally, it unfolds the legal lessons learned from this case. This study concludes that more effort should be made to localize judicial jurisdiction in resolving disputes related to sukuk, regulating the process of selecting the applicable law, and to develop the legal infrastructure in systems participating in Islamic finance. Accordingly, this study highlights the significant role that Shariah standards could play in this field in the future. Full article

In the contemporary business environment, there is an increasing demand for companies to disclose information regarding their corporate sustainability practices. An increasing number of construction companies transparently publish their sustainability practices through corporate sustainability reports under the headings of economic, environmental, social and governance. In the context of current practices, construction companies publish corporate sustainability reports by using different reporting frameworks, especially in areas beyond financial aspects, including standards established by the Global Reporting Initiative (GRI) as well as various legal obligations such as the Corporate Sustainability Reporting Standard (CSRS). This diversity makes it difficult to compare reported data and draw meaningful conclusions. Therefore, this research aims to simplify the reported information by reducing corporate sustainability themes to the most relevant ones for construction companies. Sustainability reporting frameworks and guidelines were examined through thematic analysis; then, the materiality and validity of sustainability themes for construction “companies were assessed using the Delphi analysis technique. Themes such as “Energy” in the environmental dimension, “Health and safety issues” in the social dimension, “Financial performance” in the economic dimension and “Board structure” in the governance dimension were identified as the corporate sustainability themes with the highest degree of impact, with an acceptable consistency ratio as a result of the analyses. As a result of the study, a reporting framework was developed consisting of a total of twenty-six themes for construction companies. The identification of material themes facilitates the integration of construction companies into the corporate sustainability reporting process and provides benefits for the innovation and sustainability of the sector Full article

The hospitality sector’s corporate social responsibility (CSR) is dynamic and constantly evolving. This article examines CSR implementation in the hospitality industry and investigates the growing prevalence of CSR initiatives. This research examines the implementation and challenges of CSR in the hospitality sector through a qualitative literature review methodology. The study highlights trends such as community engagement, ethical labour practices, and sustainable resource utilisation while identifying barriers like financial constraints and stakeholder resistance. Moreover, it examines the determinants that influence these patterns, including consumer inclinations, governmental policies, and industry recognition of the social and ecological repercussions. This research enhances the field of theory by consolidating and expanding upon current knowledge regarding CSR, building on Archie Carroll’s Pyramid theory’s focus on economic, legal, ethical, and philanthropic responsibilities and R. Edward Freeman’s Stakeholder Theory’s emphasis on business ethics and corporate governance. Modifications are made to these frameworks to adhere to the precise requirements of the hospitality industry. This research presents an alternative perspective on the intricate relationship between environmental sustainability, social accountability, and financial prosperity within the hospitality sector. This study questions the idea that CSR is either a mandatory obligation or an optional behaviour. Key findings reveal that integrating CSR into business strategies enhances operational efficiency, stakeholder trust, and financial performance. By building on established theoretical frameworks, this research provides actionable insights. It contributes to the global discourse on sustainability, offering a nuanced perspective on the hospitality industry’s evolving role in advancing environmental, social, and financial prosperity. Full article

The European Union (EU) has placed a strong focus on soil contamination and remediation in its Thematic Strategy for Soil Protection, emphasizing the critical need for comprehensive soil data at the EU level. To effectively support EU soil management strategies, it is necessary to develop soil-related indicators and standardized datasets across all EU member states. However, the lack of standardized methodologies for estimating the time required for contaminated site remediation is a dilemma in Italy and throughout Europe. This study examines statistical data on the time-consuming nature of the contaminated site remediation process in Italy. In fact, early intervention not only simplifies site remediation but also reduces long-term financial obligations such as monitoring costs and potential legal implications. This study categorized data according to remedial procedures, explored different management phases, and revealed different timescales for completing the procedure. The findings show that processes completed after preliminary investigations are often shorter in time than those completed following conceptual model assessments. In contrast, processes that require corrective measures typically take a longer period of time to complete. Notably, remedial interventions tend to have a shorter duration compared to risk management interventions. Furthermore, procedures that address both soil and groundwater contamination generally require more time compared to those that focus only on soil remediation. This study provides valuable insight into the time-consuming aspects of remediation procedures, recommending potential changes to regulatory frameworks to accelerate site remediation activities. Full article

The Second Payment Services Directive introduced new services into the European Union legal system—Payment Initiation and Account Information Services. These services are based on payment accounts already opened and maintained for customers by the Account Servicing Payment Service Provider (bank, payment institution, electronic money institution). The Account Services Payment Service provider performs AML/CFT verification of the account holder and applies customer due diligence measures to the account holder, such as identifying beneficial owners, obtaining information on the purpose and intended nature of the business relationship, and ongoing monitoring of the business relationship. Payment Initiation and Account Information services are therefore provided to a previously verified client and based on the payment account currently maintained for him. European Union law does not clearly specify whether a Third-Party Service Provider offering Payment Initiation or Account Information Services is obliged to re-apply financial security measures to customers. The aim of this article was to perform a legal analysis of the regulations and soft law acts in force in the European Union and to answer the question. The purposive (teleological) and linguistic–logical (grammatical) methods of interpretation of regulations were used for the analysis. The structure of the legal system of the European Union as a civil law (code law) system was taken into account. This article shows that in the current legal situation, there is no doubt that Third-Party Service Providers are obliged entities in terms of AML/CFT law and are obliged to apply the AML/CFT to customers using Payment Initiation and Account Information services. However, the degree to which customer due diligence measures have to be applied varies depending on the adopted model of providing Payment Initiation and Account Information services. Third-Party Service Providers will be obliged to apply financial security measures in cases where the relationship between the customer and the service providers will have a continuing character. In the case of occasional provision of services, when the transaction value does not exceed a certain threshold, the supplier may only perform simplified customer verification. In particular, this applies to Payment Initiation service models, where the Payment Initiation Service Provider works for merchants, enabling them to accept payments for goods and services sold. In such a model, the Service Provider has a continuous relationship with the merchant but only performs an occasional transaction for the user. The analysis also allowed for the conclusion that European Union law, including that in the draft phase, does not regulate in a sufficiently precise manner when a given model of Account Services and Payment Initiation Services may be treated as based on an occasional transaction. This made it possible to formulate a de lege ferenda request to include this issue in the proposal for an EU Regulation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing. Full article

The present study aims at providing an overview of the international, European, and national legal frameworks relating to the obligation of intermediaries of financial transactions to report to tax authorities, and the professional secrecy which applies to their professions, as well as the conflict between the two. The authors address these topics from theoretical and jurisprudential perspectives, both at national and European levels, using doctrinaire, documentary, and comparative approaches. The analyses pointed out that the focus is placed on lawyer–intermediaries’ activities and liabilities when their activity is covered by confidentiality and legal privilege. Specific attention was revealed to be necessary when the conditions under which an exemption from the reporting obligation applies, and the particularities of the effects of the regulation in these scenarios. The topic of observing the legal framework and solving the possible conflicts generated by the divergent regulation of the law enforced has been the subject matter of recent European case laws that impact all the legal systems of the European Union’s member states, which has necessitated an examination of the hierarchy of law systems within the European Union member states and to emphasize the practical jurisprudential effects. Full article

The Markets in Crypto-Assets (MiCa) Regulation of the European Union is the first comprehensive piece of legislation that seeks to protect the interests of investors in the crypto-assets sector. Although the market value of crypto-assets is significant at world level, there is a lack of clear regulatory guidelines regarding the recognition, measurement, and presentation of crypto-assets in the financial statements of investors. Considering that not all digital assets are the same, retail holders need to take into account the characteristics, rights, and obligations associated with the crypto-assets they purchase to determine the appropriate accounting method. Therefore, the research question of the present article is: Which are the main types of crypto-assets and how should they be recognized and measured in the financial statements of investors and holders? We perform a review of the accounting policies and options, relying on relevant regulations, standards, regulatory drafts, legal and academic papers, recommendations of market regulators, crypto-asset white papers, industry opinions, and media articles. There are different accounting treatments that can be applied, depending on the legal and technological aspects of each class of crypto-assets. Based on a critical discussion of accounting policies and options, our research has implications for accounting professionals, but also for standard setters, who are urged to provide clear guidelines. Identifying the key economic characteristics of each asset and determining the most appropriate way to recognize these characteristics in the financial statements are crucial for the development of a functional and trustworthy market in crypto-assets. Full article

Prices applied to internal transactions between the business segments or divisions of a company in transactions between related entities within a group (transfer pricing) can have a significant impact on a company’s competitive advantage. Transfer pricing policy influences the profits of operating segments, resource allocation and the need for segment reporting. The two main approaches to transfer pricing are the tax and managerial approaches. The aim of this research was to test whether multidivisional companies operating in Serbia give more importance to the tax or the managerial aspect of transfer pricing policy. Another research aim was to determine whether segment reporting is more developed in companies in Serbia that have the legal obligation to prepare consolidated financial statements. Both research hypotheses were confirmed using the questionnaire method on a final sample of 52 large and medium-sized companies (out of 1912 large and medium-sized companies operating in Serbia). First, our findings show that tax compliance is more dominant in transfer pricing than the managerial perspective in the Serbian companies analyzed. Second, we found that mandatory consolidated financial reporting and related segment reporting can influence the managerial approach to transfer pricing in Serbian multidivisional companies and groups. Other factors (production orientation of companies, developed responsibility accounting and managers’ bonuses, for example) also encourage this approach. Full article

This paper presents the results of research conducted to identify the factors that influence the decisions of company management to outsource accounting services. A transaction cost economics (TCE) model was used to analyse factors that influence high levels of outsourcing of accounting tasks in the case of Montenegro, where, based on our sample, 75.4% of companies enter outsourcing arrangements with bookkeeping agencies or with external accountants. With an adaptation of International Accounting Standards (IAS) and legal requirements for submission of standardised year-end reports, there is evident growth of bookkeeping and financial service providers on the market and an evident trend of companies entering accounting service outsourcing with those agencies. A survey was developed to investigate 12 variables that, according to the TCE model, influence outsourcing decisions. The selection of variables was based on previous research in the field using the TCE or Resource-Based View model (the most common models used for this analysis). In contrast, new variables were introduced that measure the effects of the introduction of IAS through legal reporting obligations in Montenegro. By developing the model this way, it became possible to predict 47% of the variance of the dependent variable and to identify the main factors (other than price) that influence the decision of managers to outsource accounting services. Full article

The European Union obliged the member states to introduce monitoring and control tools in order to improve the quality of provided transmission services and to guarantee the contracted amount of energy to end users. However, the EU has left the member states the freedom to create and implement compensation tools, enabling customers to claim their rights arising from non-compliance by transmission companies with the provisions of distribution agreements. The introduction of quantitative energy monitoring and an appropriate compensation mechanism is of great importance not only for end users but also for distribution companies. For end users, this would be a tool to enforce their rights against transmission companies, while transmission companies would gain a tool to control and manage both legal and financial risks. The aim of this study is to analyze discount as an example of a guarantee instrument in the field of the consumer’s right to energy of an adequate quality based on the Polish example supported by a systematic legal review. In the EU, discount is not regulated directly at the EU level; hence, it is impossible to base it on acquis and analyze it through the prism of EU regulation. In Poland, the possibility for recipients to apply for a discount for poor-quality electricity was introduced into the first version of the Energy Law in 1998, long before the adoption of Directive 2019/944 by the EU. The fundamental issues that were addressed and discussed in this paper were as follows: (1) Is the discount compensatory in nature? (2) Should it be included in the compensation due to the consumer? (3) Is it possible to reduce it when the power supply interruption results from circumstances beyond the control of the energy company (e.g., unforeseen weather conditions)? Full article

Renewable energy sources are an attractive alternative to fossil fuels for several reasons. Firstly, these are ecological arguments, mainly reducing greenhouse gas emissions. Secondly, there are legal issues, particularly the obligations of the European Community countries in the field of climate as part of the implementation of the European Green Deal and the joint achievement of 40% of energy from renewable sources by 2030. Thirdly, these are international issues, primarily regarding reducing dependence on uncertain oil or gas markets. And finally, they may be economic reasons, such as diversification of energy supplies and associated costs, as well as opportunities for profits on the capital market. In Poland, over the last decade, a certain kind of boom in photovoltaics has been visible, both in terms of the number of companies dealing with solar collectors, as well as the annual increase in new capacity, or the level of installed capacity. Also, on the Warsaw Stock Exchange, photovoltaic companies have introduced much confusion in the tier of quotations in recent years. Solar energy has become a kind of gateway for companies to increase their results, stock exchange quotations, or acquire new customers. It is not surprising that more and more investors want to invest their money in this segment. Given the above, this article attempts to answer the question: Is there a risk of a stock market bubble among photovoltaic companies in the near future? For this purpose, we used the financial indicators of photovoltaic companies listed on the Warsaw Stock Exchange, and with the help of the Taxonomic Measure of Attractiveness of Investments, we created rankings of the investment attractiveness of these companies in 2017-2019. The leaders include companies listed on the main market as well as in the alternative trading system of the Warsaw Stock Exchange. It should be borne in mind that regardless of the undertaken diversification and analytical activities, the risk of an investment bubble has been and will remain an indispensable element in the functioning of every capital market in the world. Full article

This paper examines Latino/a children’s roles and obligations to their immigrant families. Bridging insights from the literature on the “new sociology of childhood,” immigrant incorporation, and care work, this essay argues that children perform important—but often invisible—labor in immigrant families. Dominant ideologies depict childhood as an “innocent” time wherein young people are in need of guidance and are too underdeveloped to make meaningful contributions. However, this construction of childhood ignores the lived realities of the children of immigrants, who often serve as gatekeepers and connect their families to services and resources in their communities. This essay examines six dimensions of support that the children of immigrants provide to their families, namely, language and cultural help, financial contributions, bureaucratic assistance, emotional labor, legal support, and guidance with technology. This essay concludes with implications for scholars, students, and policymakers on the importance of recognizing this labor, along with future directions for research. Full article

The purpose of this paper is to present the two existing virtual account models functioning in the European Union, examine their legal validity and identify the legal challenges related to the functioning of these models. The first model, Mass Payment Accounts, which is related to virtual accounts rather than to virtual IBANs, is the model where the licensed financial institution only provides a business payment (settlement) account, with technical subaccounts, to one of their business clients. The functionality of the subaccounts is limited to reflect and distinguish the incoming payments. The second and more complex model is the vIBAN solution, where the licensed payment institution provides, to another licensed financial institution, indirect access to local payment schemes (hereinafter referred to as “vIBAN”). To confirm the legal validity and identify the potential risks of vIBAN services, EU law was analysed with some insights from Polish law. The reason for introducing vIBAN services is the difficulty for certain payment service providers to participate in so-called designated payment systems. Designated payment systems are usually the most widespread local payment systems. The reason for the different treatment of these designated systems is banking systemic risk, understood as a situation where a default by a system participant may result in a default by other participants. Consequently, even if a given payment service provider can obtain its own IBAN number, there is often no possibility for it to participate in designated payment schemes. Bearing in mind the different rules in the case of designated payment systems, the legality of vIBAN services in the EU law is justified by the principle of free movement of services, the principle of equal access to payment schemes and the obligation of the credit institutions to provide banking and non-banking participants with credit institution payment account services on an objective, non-discriminatory and proportionate basis. However, there are various challenges related to the functioning of vIBAN services, such as the overlapping of certain AML/CFT obligations, enforcement of administrative and court seizures, AML-related blocking of vIBANs and consistency of money transfer sender data with the Fund Transfer Regulation. The most pressing challenges requiring prompt regulation on the European level are related to the applicable deposit protection scheme, as well as to specific Member States’ administrative restrictions, which can cause difficulties in offering vIBAN services to business entities. Full article

Disclosure of non-financial information, especially regarding corporate governance (CG), is an important element of companies’ communication with their stakeholders. This paper sets out to define—from a theoretical and practical perspective—the scope of CG reporting in Polish fuel, gas, and energy (“energy”) companies required under EU directives and national regulations. The paper presents the results of a study investigating whether and to what extent annual corporate governance statements (CGSs) prepared by energy companies, compared with other companies listed on the Warsaw Stock Exchange (WSE-LCs), are consistent with “Best Practices for WSE-LCs 2016” (BPs for WSE-LCs). The study group consisted of energy companies submitting their 2017–2020 reports, as well as other companies listed on the WSE, as a comparative group (i.e., a total of 179 reports). We used a monographic method to study theoretical problems and annual CGSs and performed a critical review of the literature, as well as comparative, content, and descriptive analyses. The analysed CGSs helped answer the following question: to what extent do energy companies and other WSE-LCs pursue the CG rules specified in BPs for WSE-LCs? The results indicate that such companies follow various approaches to CG disclosures and reporting obligations. However, what truly matters is not the legal obligation itself, but rather the companies’ social responsibility for maintaining good relations with their stakeholders. The paper will contribute to CG studies, because no Polish theorist has so far analysed CG disclosures in annual non-financial reports. The paper fills a research gap in information on adherence to best practices in CG disclosures in CGSs of all WSE-LCs. The study presents conclusions of CG disclosures by energy companies, which can provide the basis for further research in other sectors. Full article

Achieving climate neutrality, as dictated by international agreements such as the Paris Agreement, the United Nations Agenda 2030 and the European Green Deal, requires the conscription of all parts of society. The business world and, in particular, large enterprises have a leading role in this effort. Businesses can contribute to this effort by establishing a reporting and operating framework according to specific Environmental, Social and Governance (ESG) criteria. The interest of companies in the ESG framework has become more intense in the recent years, as they recognize that apart from an improved reputation, ESG criteria can add value to them and help them to become more effective in their functioning. In particular, large European companies are legally obligated by the Non-Financial Reporting Directive (NFRD—Directive 2014/95/EU) to disclose non-financial information on how they deal with social and environmental issues. In the literature, there are discussions on the extent to which a good ESG performance affects a company’s profitability, valuation, capital efficiency and risk. The purpose of this paper is to examine empirically whether a relationship between good ESG performance and the good financial condition of companies can be documented. For a sample of the top 50 European companies in terms of ESG performance (STOXX Europe ESG Leaders 50 Index), covering a wide range of sectors, namely Automobiles, Consumer Products, Energy, Financial Services, Manufacturing, etc., we first reviewed their reportings to see which ESG framework they use to monitor their performance. Next, we examined whether there is a pattern of better financial performance compared to other large European corporations. Our results showed that such a connection seems to exist at least for some specific parameters, while for others, such a claim cannot be supported. Full article