Academic literature on the topic 'Accounting allocation problem'
Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles
Consult the lists of relevant articles, books, theses, conference reports, and other scholarly sources on the topic 'Accounting allocation problem.'
Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.
You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.
Journal articles on the topic "Accounting allocation problem"
1
Liu, Haiyan. "WEIGHTED COMONOTONIC RISK SHARING UNDER HETEROGENEOUS BELIEFS." ASTIN Bulletin 50, no. 2 (2020): 647–73. http://dx.doi.org/10.1017/asb.2020.6.
Full textAbstract:
AbstractWe study a weighted comonotonic risk-sharing problem among multiple agents with distortion risk measures under heterogeneous beliefs. The explicit forms of optimal allocations are obtained, which are Pareto-optimal. A necessary and sufficient condition is given to ensure the uniqueness of the optimal allocation, and sufficient conditions are given to obtain an optimal allocation of the form of excess of loss or full insurance. The optimal allocation may satisfy individual rationality depending on the choice of the weight. When the distortion risk measure is value at risk or tail value at risk, an optimal allocation is generally of the excess-of-loss form. The numerical examples suggest that a risk is more likely to be shared among agents with heterogeneous beliefs, and the introduction of the weight enables us to prioritize some agents as part of a group sharing a risk.
2
Killian, Larita. "The Continuing Problem of Special Districts in American Government." Accounting and the Public Interest 11, no. 1 (2011): 52–67. http://dx.doi.org/10.2308/apin-10076.
Full textAbstract:
ABSTRACT Due to fiscal constraints and demands for increased accountability, scholars and public officials are reviewing the structure and reporting practices of local governments. These efforts are often incomplete, however, because they bypass special districts, which now comprise over 40 percent of all local governments. The proliferation of special districts has the potential to increase government costs, redirect the allocation of scarce resources, remove debt and expenditure practices from the public eye, and reduce democratic controls over elected officials. This paper highlights some of the public interest concerns related to these entities to inform future, localized research. For decades, scholars have approached special districts from two opposing theoretical perspectives: institutional reform and public choice. Literature from these opposing perspectives is used to analyze special districts along three dimensions: efficiency and economy of operations, policy alignment and allocation of resources, and democratic accountability. This paper uses the U.S. Census Bureau definition of special districts, though alternative definitions are discussed. Efforts by four states (Florida, Pennsylvania, Indiana, and New York) to improve local government, and their varying approaches to special districts, are reviewed, leading to the conclusion that the complex issues related to special districts must be resolved within state contexts.
3
Quddoos, Abdul, Irfan Ali, and M. Masood Khalid. "Bi-Objective Fuzzy Selective Maintenance Allocation Problem." American Journal of Mathematical and Management Sciences 34, no. 4 (2015): 289–308. http://dx.doi.org/10.1080/01966324.2015.1040177.
Full text
4
Tamulevičienė, Daiva, Jonas Mackevičius, and Ermina Liubinaitė. "Peculiarities of the use of indirect costs allocation method, based on the assignment of indirect costs to departments." Buhalterinės apskaitos teorija ir praktika, no. 25 (July 13, 2022): 3. http://dx.doi.org/10.15388/batp.2022.42.
Full textAbstract:
No costing method can guarantee that cost accuracy will be 100% correct. This is primarily due to the problem of attributing indirect costs to the cost of a product or service. However, in recent decades, most of the research on the allocation of indirect costs has focused on Activity Based Costing (ABC) method, which is too complex and too costly for many companies. In contrast, research into the method of allocating indirect costs to departments has been unduly reduced. This method, often referred to as the traditional approach, is popular with the vast majority of companies and, if properly applied, would result in a reasonably accurate allocation of indirect costs to the cost of goods and services. The objective of the study is to reveal the peculiarities of the application of indirect cost allocation method based on the assignment of indirect costs to departments, with a view to improving the efficiency of the use of this method in the assignment of indirect costs to the cost of goods or services. The paper examines the peculiarities of the traditional method of allocating indirect costs, proposing not only a sequence for allocating these costs, but also the criteria for selecting the basis for the allocation of indirect costs, alternative methods of allocating indirect costs to production units, and the principles for calculating the indirect cost rate. All of this would allow enterprises to apply the indirect cost allocation method, based on assignment oh indirect cost to departments, much more effectively, both in financial accounting, for the purpose of determining cost of sales for the preparation of financial statements, and in management accounting, for the purpose of making various management decisions.
5
Martínez, Pablo Mahu. "Distributive Profit Allocation Rules: A New Approach for an Old Problem." Intertax 49, Issue 2 (2021): 144–65. http://dx.doi.org/10.54648/taxi2021014.
Full textAbstract:
The Organisation for Economic Co-operation and Development (OECD) has recently announced its renewed commitment to the Unified Approach (UA) contained in Pillar I for the taxation of MNEs’ business profits. The historical development of this approach demonstrates how the OECD has not taken inter-nation equity issues seriously in its drafting and, thus, the approach produces outcome issues that do not address the underlying problems that actuated the BEPS Program in the first place. The author believes that the OECD has not been asking the correct questions and, therefore, the problem of how to reform international tax law must be restated. In a world of increasing political instability, stagnating inequality rates, and a continuous struggle to improve the quality of life of its world citizens, tax policy requires addressing these fundamental issues. Internation equity demands an agreement on fundamental justice principles underlying international tax law, principles that would best be reflected in new nexus and profit allocation rules based on factors of distributive justice. Only in that way can the OECD reach a stable, lasting, and consensual solution to address the issues in our current international tax architecture that will benefit all parties involved. International tax law, inter-nation equity, distributive justice, profit allocation rules, nexus rules, Unified Approach.
6
Janáček, Jaroslav, Lýdia Gábrišová, and Miroslav Plevný. "FAIR FACILITY ALLOCATION IN EMERGENCY SERVICE SYSTEM." Journal of Business Economics and Management 21, no. 4 (2020): 1058–71. http://dx.doi.org/10.3846/jbem.2020.12823.
Full textAbstract:
The request of equal accessibility must be respected to some extent when dealing with problems of designing or rebuilding of emergency service systems. Not only the disutility of the average user but also the disutility of the worst situated user must be taken into consideration. Respecting this principle is called fairness of system design. Unfairness can be mitigated to a certain extent by an appropriate fair allocation of additional facilities among the centres. In this article, two criteria of collective fairness are defined in the connection with the facility allocation problem. To solve the problems, we suggest a series of fast algorithms for solving of the allocation problem. This article extends the family of the original solving techniques based on branch-and-bound principle by newly suggested techniques, which exploit either dynamic programming principle or convexity and monotony of decreasing nonlinearities in objective functions. The resulting algorithms were tested and compared performing numerical experiments with real-sized problem instances. The new proposed algorithms outperform the original approach. The suggested methods are able to solve general min-sum and min-max problems, in which a limited number of facilities should be assigned to individual members from a finite set of providers.
7
Vaidya, Omkarprasad S., L. Ganapathy, and Sushil Kumar. "A cost minimisation model for system reliability allocation." International Journal of Quality & Reliability Management 36, no. 9 (2019): 1620–43. http://dx.doi.org/10.1108/ijqrm-07-2018-0199.
Full textAbstract:
Purpose The purpose of this paper is to consider a nonlinear problem of minimizing the cost of providing reliable systems. The authors assume that the system consists of several components in series, and for each such component, the cost of the component increases exponentially with its reliability. Design/methodology/approach In order to solve this nonlinear optimization problem, the authors propose two approaches. The first approach is based on the concept of adjusting the reliability of a pair of components to minimize the cost of the system. The authors call this procedure as reliability adjustment routine (RAR). Proofs of optimality and convergence for the proposed model are also provided. The second approach solves the problem by using a Lagrangian multiplier. A procedure is developed to obtain the maximum step size to achieve the desired optimal solution in minimum iterations. Proposed approaches are efficient and give exact solutions. Findings Proposed methods enable a decision maker to allocate reliability to the components in series while minimizing the total cost of the system. The developed procedures are illustrated using a numerical example. Although an exponential relationship between the component cost and reliability is assumed, this can be extended to various other nonlinear distributions. Originality/value This cost optimization problem, subject to system component reliability values, assumes the near practical nonlinear pattern of cost vs reliability. Such problems are complex to solve. The authors provide a unique approach called RAR to solve such convoluted problems. The authors also provide an approach to solve such problems by using a Lagrangian multiplier method. Various proofs have been worked out to substantiate the work.
8
Friedrich, Ulf, Ralf Münnich, and Martin Rupp. "Multivariate optimal allocation with box-constraints." Austrian Journal of Statistics 47, no. 2 (2018): 33–52. http://dx.doi.org/10.17713/ajs.v47i2.764.
Full textAbstract:
Modern surveys aim at fostering accurate information on demographic and other variables. The necessity for providing figures on regional levels and on a variety of subclasses leads to fine stratifications of the population. Optimizing the accuracy of stratified random samples requires incorporating a vast amount of strata on various levels of aggregation. Accounting for several variables of interest for the optimization yields a multivariate optimal allocation problem in which practical issues such as cost restrictions or control of sampling fractions have to be considered. Taking advantage of the special structure of the variance functions and applying Pareto optimization, efficient algorithms are developed which allow solving large-scale problems. Additionally, integrality- and box-constraints on the sample sizes are considered. The performance of the algorithms is presented comparatively using an open household dataset illustrating their advantages and relevance for modern surveys.
9
Kholkin, Anatolii. "Criteria for choosing the cost allocation base for industrial enterprises." E3S Web of Conferences 164 (2020): 09035. http://dx.doi.org/10.1051/e3sconf/202016409035.
Full textAbstract:
This article is devoted to solving the actual problem of forming a system of criteria for selecting an indirect costs allocation base. Therefore, the purpose of this article was to determine the criteria for selecting an indirect costs allocation base in industrial enterprises. To achieve this goal, the following methods were used: analysis, synthesis, generalization, thought experiment, tabular method, and graphical representation. In the result of using these methods, six criteria for selecting an allocation base were identified. For each of the criteria, a description and justification of its choice were given. Negative consequences were described in the form of cost distortions depending on the selected allocation base. The theoretical significance of this research is to develop cost allocation methods in terms of certainty of process of a choice of the allocation base. The practical significance of the article is the development of clear and unambiguous criteria, the use of which in the process of organizing cost accounting in terms of selecting the allocation base will increase the objectivity and provability of the result obtained. This article will be useful for researchers working in the field of developing the theoretical foundations of accounting and cost management, as well as practitioners in the field of management accounting, as well as managers at various levels.
10
Pfeifer, Phillip E. "The Airline Discount Fare Allocation Problem." Decision Sciences 20, no. 1 (1989): 149–57. http://dx.doi.org/10.1111/j.1540-5915.1989.tb01403.x.
Full textDissertations / Theses on the topic "Accounting allocation problem"
1
Falta, Michael. "Statistical and computational methods to assess uncertainty and risk in accounting." Thesis, Queensland University of Technology, 2005. https://eprints.qut.edu.au/16053/1/Michael_Falta_Thesis.pdf.
Full textAbstract:
Informed economic decisions are made on the basis of accounting data. It is therefore crucial to have rigorous and scientific approaches for measuring, modelling and forecasting accounting numbers.
Dr Falta's research was motivated by two observations. Firstly, in accounting practice, decision-making often relies on subjective quantifications and forecasts of business activities and, thus, does not account for uncertainty in a rational way. Secondly, there are some academic foundations for statistical approaches to accounting, yet none has been developed carefully enough for results to penetrate and to contribute to practitioners' needs.
Dr Falta applied components of mathematics, statistics, econometrics, finance and computing to aspects of accounting and auditing. He developed an enhanced framework for scientific measurement of business process costing and recording accounting transaction data. This has enabled a better understanding of risk in accounting-based decision-making. His research is being incorporated in projects with the Royal Australian Navy and SunWater.
2
Falta, Michael. "Statistical and Computational Methods to Assess Uncertainty and Risk in Accounting." Queensland University of Technology, 2005. http://eprints.qut.edu.au/16053/.
Full textAbstract:
Informed economic decisions are made on the basis of accounting data. It is therefore crucial to have rigorous and scientific approaches for measuring, modelling and forecasting accounting numbers. Dr Falta's research was motivated by two observations. Firstly, in accounting practice, decision-making often relies on subjective quantifications and forecasts of business activities and, thus, does not account for uncertainty in a rational way. Secondly, there are some academic foundations for statistical approaches to accounting, yet none has been developed carefully enough for results to penetrate and to contribute to practitioners' needs. Dr Falta applied components of mathematics, statistics, econometrics, finance and computing to aspects of accounting and auditing. He developed an enhanced framework for scientific measurement of business process costing and recording accounting transaction data. This has enabled a better understanding of risk in accounting-based decision-making. His research is being incorporated in projects with the Royal Australian Navy and SunWater.
3
Konan, Nangan Christian. "Problems encountered with the implementation of an activity-based costing system." Thesis, Nelson Mandela Metropolitan University, 2012. http://hdl.handle.net/10948/d1018653.
Full textAbstract:
The activity-based costing (ABC) system is a cost allocation technique which appears to have many benefits over the traditional costing systems. However, companies that have attempted to implement ABC have encountered various difficulties. Thus, there is a need to investigate the problems faced by companies while implementing ABC. The main objective of this study was to find solutions to overcome the problems encountered by South African companies during the implementation of an activity-based costing system.
4
Iyogun, Paul Omolewa. "Lower bounds for production/inventory problems by cost allocation." Thesis, University of British Columbia, 1987. http://hdl.handle.net/2429/27323.
Full textAbstract:
This thesis presents a cost allocation method for deriving lower bounds on costs of feasible policies for a class of production/inventory problems. Consider the joint replenishment problem where a group of items is replenished together or individually. A sequence of reorders for any particular item will incur holding, backorder and set-up costs specific to the item, in addition whenever any item is replenished a joint cost is incurred. What is required of the total problem is the minimization of a cost function of the replenishment sequence or policy.
The cost allocation method consists of decomposing the total problem into sub-problems, one for each item, by allocating the joint cost amongst the items in such a way that every item in the group receives a positive allocation or none. The result is that, for an arbitrary feasible cost allocation, the sum of the minimum costs for the subproblems is a lower bound on the cost of any feasible policy to the total problem. The results for the joint replenishment problem follows:
For the constant and continuous demand case we reproduce the lower bound of Jackson, Maxwell and Muckstadt more easily than they did. For the multi-item dynamic
lot-size problem, we generalize Silver-Meal and part-period balancing heuristics, and derive a cost allocation bound with little extra work. For the 'can-order' system, we use periodic policies derived from the cost allocation method and show that they are superior to the more complex (s,c,S) policies. The cost allocation method is easily
generalized to pure distribution problems where joint replenishment decisions are taken at several facilities. For example, for the one-warehouse multi-retailer problem, we reproduce Roundy's bound more easily than he did. For the multi-facility joint replenishment problem (a pure distribution system with an arbitrary number of warehouses),
we give a lower bound algorithm whose complexity is dr log r where d is the maximum number of facilities which replenish a particular item and r is the number of items.<br>Business, Sauder School of<br>Graduate
Books on the topic "Accounting allocation problem"
1
Ellwood, Sheila. Accounting for What We Treasure. Edited by Angela M. Labrador and Neil Asher Silberman. Oxford University Press, 2018. http://dx.doi.org/10.1093/oxfordhb/9780190676315.013.13.
Full textAbstract:
Recent attempts to include and assess public heritage in the accounts of governments and charities are controversial. There are many kinds of value, not merely financial, and various measurement bases. This chapter examines why and how we account (if at all) for heritage assets bringing out the surrounding controversy. Is public heritage an asset that should be included in the reported wealth of public bodies and nations? The economic valuation methods, revealed preferences and stated preferences are the economic valuation methods investigated and considered in relation to the decisions to be made on public heritage. Although the conceptual and practical problems surrounding valuation and reporting of public heritage are immense, pragmatic solutions should be sought. Multidisciplinary approaches are necessary to make informed decisions on management, financing, and the allocation of resources for public heritage.
Book chapters on the topic "Accounting allocation problem"
1
"Allocation Problems – Depreciation." In A. C. Littleton’s Final Thoughts on Accounting: A Collection of Unpublished Essays. Emerald Group Publishing Limited, 2016. http://dx.doi.org/10.1108/s1479-350420160000020064.
Full text
2
"Allocation Problems – Inventory Pricing." In A. C. Littleton’s Final Thoughts on Accounting: A Collection of Unpublished Essays. Emerald Group Publishing Limited, 2016. http://dx.doi.org/10.1108/s1479-350420160000020063.
Full text
3
"On Impossibility Theorems, Informal Algorithms, and International Trade." In Complex Systems and Sustainability in the Global Auditing, Consulting, and Credit Rating Agency Industries. IGI Global, 2021. http://dx.doi.org/10.4018/978-1-7998-7418-8.ch006.
Full textAbstract:
The “Big-Four” accounting firms dominate the global accounting/auditing industry, and the big-seven consulting firms (Bain; McKinsey; Booz; Deloitte; PwC; KPMG and E&Y) dominate the global business/management consulting industry and stifle competition. During 1990-2017, the global auditing/accounting industry and the global management consulting industry experienced significant structural changes that have implications for Financial Stability, systemic risk and the proper functioning of capital markets. Some of the results included the collapses of stock prices and bond prices of firms suspected of earnings management; and substantial litigation against auditing firms, CRAs and board of directors. Accounting/audit firms and consulting firms have always been key elements in the fight against earnings management, securities fraud, corruption and asset quality management because of their unique position as external auditors and advisors. This chapter introduces some efficient Auditor allocation and Compensation Mechanisms. These new “Learning Business Models” and contracts can solve the conflicts of interest, Antitrust, greed, Regret, Deadweight-Losses, complexity and industrial organization problems inherent in the Auditing/consulting industry; and each such model contravenes Myerson-Satterthwaite Impossibility Theorem, Arrow's Impossibility Theorem, Sen's Impossibility Theorem, Gibbard's Theorem, the Gibbard-Satterthwaite Impossibility Theorem, and the Green-Laffont Impossibility Theorem. These issues have implications for international trade and international capital flows given the prevalence of accounting and management consulting in almost all aspects of modern business.
4
Rodin, David. "Two Visions of Human Rights." In Human Rights and 21st Century Challenges. Oxford University Press, 2020. http://dx.doi.org/10.1093/oso/9780198824770.003.0004.
Full textAbstract:
This chapter explores the moral foundation of rights. Both the Interest Theory of Rights, rooted in consequentialism, and the Will Theory of Rights, based on the moral status of agents, have difficulty in accounting for the dynamic nature of rights—the fact that allocations of rights and duties can change over time through processes of forfeiture and liability arising from the responsible action of individual agents. The Reciprocity Account of Rights can explain the dynamic nature of rights and has several other important advantages compared with the Interest and Will Theories. However, the account has difficulty in explaining the rights of future generations since it is not clear how current and future persons can stand in a relationship of normative reciprocity. It also has difficulty in explaining the right to engage in harmful defensive action aimed at protecting third parties. This chapter will examine these problems and explore the resources that the Reciprocity Theory to address them.
Conference papers on the topic "Accounting allocation problem"
1
Li, Xiaoyu, Qiang Xu, Minghua Zhao, Chengwen Qian, Jing Jin, and Jingjun Xi. "Research on Pricing Formulation Method for Long Distance Natural Gas Pipeline Network Transporting." In 2012 9th International Pipeline Conference. American Society of Mechanical Engineers, 2012. http://dx.doi.org/10.1115/ipc2012-90090.
Full textAbstract:
With the completion of the second line project of West-East Gas Transmission in 2011, the third line of West-East Gas Transmission will be started soon and the fourth line and the fifth line will be started in recent five years. China will form one of the largest natural gas pipeline network in the world. The gas supply mode will be changed from single gas source and single-pipeline supply to multi-source and multi-pipeline supply through regulation and coordination, which will impact on existing pricing mechanism and operation mode of Chinese natural gas industry violently. Depending on the development trend of natural gas pipeline network, the regionalization management mode of natural gas pipeline will be implemented gradually. Chinese natural gas industry also needs to develop a new-type market-oriented operation mode with clear interfaces between production, transportation, distribution and customers so as to facilitate the optimal allocation of resources. By the customized scientific research of CNPC (China National Petroleum Corporation), combining with existing pricing mechanism of natural gas pipeline and economic characteristics of long-distance natural gas pipeline transportation in China, the paper studied the pricing mechanism problem of combined transportation of multi-source and mutli-pipeline gas supply in the regionalization management mechanism, presented the idea of pricing formulation method of two kinds of pipeline network transportation based on standard rates of pipeline transportation and service cost rules, formed pricing formulation system of natural gas pipeline transportation, introduced the design idea, structural construction, distribution method and key points of natural gas pipeline transportation in details, and demonstrated the methods by example calculation. The methods presented in the paper can meet the pricing requirements of natural gas pipeline network transportation, remedy the defect in existing price accounting mechanism, solve the problem that the income and expenses among different interest bodies are not balanced, and facilitate the rapid development of natural gas pipeline business.
2
Odachi, Kenechukwu. "Securing Business Processes Using Blockchain Technology: A Case Study of Hydrocarbon Accounting Processes." In International Petroleum Technology Conference. IPTC, 2022. http://dx.doi.org/10.2523/iptc-22146-ms.
Full textAbstract:
Abstract This research addresses the problems associated with hydrocarbon accounting reconciliation and allocation from the production facility to the export terminal. This paper further discusses the security of the hydrocarbon accounting database and the overall automation of the production value chain, providing transparency to the joint venture partners involved in the crude oil export agreement to avoid revenue loss. It also provides a system that is not prone to malware or data alteration and promotes hydrocarbon allocation among the injectors, production data management and production data security. The existing system mostly in the sub-saharan Africa lacks trust and greater transparency. A new technology will be devolped using Blockchain Hyperledger which is a distributed ledger technology. For the purpose of this research Javascript, PHP, MySQL on Apache virtual machine was used to design and simulate the blockchain network. The web interface of the system was tested using katalon web test framework using Agile methodology. The system will have to integrate with the Lease Automation Custody Transfer (LACT) and Supervisory Control and Data Acquisition (SCADA), A LACT-SCADANode synchronized system will be implemented in the custody transfer point in the export pipeline, so all the oil and gas Exploration and Production (E&Ps) companies injecting crude oil can view what each company in the network injected and also the quantity that got to the export terminal daily. This will be achieved by having all the custody transfer nodes of the E&Ps and export terminal node in a network of consensus. Production data will be distributed at strategic points during the transportation among the nodes uniformly at the same time, making it impossible for cyber-invasion on all the nodes at the same time. The outcome of this research will achieve an advanced secured transparent system to store production data for accurate hydrocarbon allocation, in which the consensus attribute of the implemented blockchain technology will give each node autonomy. Hence, making the production data highly reliable and reconciliation will be achieved at real-time. This innovation further presents a new knowledge in the application of mechatronics engineering to the oil and gas sector, with its multidisciplinary focus on electronics, mechanical and computer systems. It is the integration of a software system to a LACT and sensors on the crude oil pipelines to acquire data, compute in a Hyperledger fabric network and display at real-time for hydrocarbon allocation settlement
Reports on the topic "Accounting allocation problem"
1
Pforr, Tobias, Fabian Pape, and Steffen Murau. After the Allocation: What Role for the Special Drawing Rights System? Institute for New Economic Thinking Working Paper Series, 2022. http://dx.doi.org/10.36687/inetwp180.
Full textAbstract:
In August 2021, the IMF made a new SDR allocation to help ease pandemic-induced financial strains in the Global South. This paper assesses the potential of the SDR system to address debtrelated problems in global finance. We analyze the SDR system as a web of interlocking balance sheets whose members can use SDR holdings—the system’s tradable assets—for conversion into usable currency as a perpetual low-interest loan or to make payments to each other. Using original IMF data, we study how the system has been practically used since 1990. Though widely perceived as a solution in search of a problem in the post-Bretton Woods era, we find that the SDR system provides three mechanisms through which IMF members borrow and lend usable currency to each other, with different strings attached: first, transactions by agreement; second, the IMF’s core lending facilities for which the SDR system offers additional resources; and third, IMF-sponsored Trusts which seek to harness the SDR system for development purposes and are the basis for the current idea of ‘voluntary channeling’. Overall, given the SDR system’s idiosyncratic accounting rules, the new allocation can improve the liquidity position of a country and offer some limited avenues for sovereign debt restructuring but comes with new interest and exchange rate risks. Voluntary channeling cannot happen without a wealth transfer, neither the SDR allocation nor the use of Trusts can overcome this problem. Still, Trusts can be a useful instrument to help with debt forgiveness and to ensure that borrowed funds are used for their intended purpose.