Issue 3, 2016

The article reveals the difference between the tax and economic depreciation of fixed assets. Formed a theoretical justification of various influences on the growth of economic depreciation of the country where the fixed assets operates and provide sustainable growth rate for firms. Article generates estimation of influence differences between the tax and economic depreciation on the company's growth. Developed theoretical mechanisms for estimate economical depreciation and set her influence on the capacity for renewal of fixed assets. Formed methodology of function mechanism the implementation of reinvestment with condition identity between tax and economical depreciation of fixed assets. The article analyzes the profit which can be obtained from instruments of labor which consists of depreciated. Developed a theory for estimate repair, replacement tools that includes in calculation of depreciation of work tools.
JEL: O47; E23 ; D24

This study used EGARCH estimation techniques to examine the impact of the systematic risk emanating from the macroeconomy on stock market volatility based on monthly data sourced from 1985 to 2013 on the Nigerian economy. Our results show that all the macroeconomic variables tested exerts on stock market pricing and that the stock market pricing is most influenced by exchange rate volatility. We thus recommend that policy makers on the one hand should pay close attention to the innovations in the macroeconomic variables when formulating macroeconomic or financial stability policy. On the other hand, market practitioners should calibrate volatility of macroeconomic variables in their portfolio decision making process.
JEL: E43; E58; F41; F10; F30

This study aims to analyze the movements in the balance-of-payments accounts of Bulgaria from 1991 to 2014 by evaluating the internal and external economic processes, characterizing this period. The observations on the accounts dynamics, in the context of the ongoing liberalization and catching-up policies, allow the identification of the causes for the registered growth rate of Bulgaria and whether or not it is a sustainable one. As a result, an assessment is made of both the external competitiveness of the Bulgarian economy and the degree of success of the transition from planned to market economy, in light of the possibilities for conducting a catch-up growth.
JEL: F31; F32; F43; E32

The study analyzes the process of monetary integration of the New Member Countries from the moment of their accession to the European Union. The focus of investigation is on the nominal convergence (the fulfillment of the Maastricht criteria) and on the satisfaction of the Optimum Currency Area criteria by the New Member States. More specifically, the trade integration, the financial integration, the output structure and the labor markets of the New Member States are explored from the standpoints of the Optimum Currency Area theory and in the context of the already accomplished or forthcoming membership of the New Member States in the Euro Area. The experience of the NMS, which have already adopted the Euro, is also reviewed.
JEL: F15; F36; E60; F40

The main purpose of this paper is to analyze the key issues and challenges in assessing the risk of bankruptcy in Bulgarian companies. The results of seven bankruptcy prediction models are analyzed. Significant differences were found between the forecasts that give certain models. The error of the second type of bankruptcy prediction models was analyzed. Certain models have satisfactory error values of the second type, while others have too high values of this error. There is a need of a bankruptcy prediction model that offers adequate performance.
JEL: G33; L25

The importance and the relevance of the credit risk management issues in the context of its accounting information support are indisputable. The continuing financial and economic crisis and the changes in the global regulatory framework for banks are reviewed. The preparation of the Bulgarian banking system for a global reform of financial regulation – Basel III, and the proposed changes in international accounting standards to future loan loss recognition are analyzed.
JEL: G01; G21; G32; M41; M48

The issue of assessment of farms sustainability is among the most discussed among researchers, farmers, investors, politicians, interests groups and public at large. Despite the significant development of the theory and practice in that new area still there is no common understanding on „what is farm sustainability?“, „what is the relation between farm and agrarian sustainability?“, “which are critical factors of farms sustainability?”, and „how to assess farms sustainability level?“. This article tries to give answer to all these questions, as the evolution of the “concept” of farm sustainability is initially analyzed and discussed. On that base is suggested adequate definition of farm sustainability as ability of a particular farm to maintain its governance, economic, social and ecological functions in a long term. After that applicable for the contemporary conditions of the development of Bulgarian farms framework for assessing the farm sustainability level is suggested. The later includes a system of appropriate principles, criteria, indicators, and reference values, which characterize the governance, economic, ecological and social aspects of farms sustainability as well as approach for their integration and interpretation. The goal is to test the efficiency of this framework, and after that to apply it for the assessment of sustainability level of farms during the new program period of EU CAP implementation in Bulgaria.
JEL: Q12; Q18; Q56; Q57