A story about IAS/IFRS implementation in Romania

2017

This paper represents a study on the implementation of the international accounting standards in Romania. Through this paper we find out about the stages covered and the solutions adopted by Romania as well as the perspectives concerning the adaptability of the national accounting system to the performance of the international standards in the accounting domain, namely: the elaboration of accounting regulations harmonized with International Accounting Standards or, in other words, the internationalization of the national accounting system; ensuring the compliance of Romanian accounting regulations with the European directives and, in consequence, waiving the International Accounting Standards (at least at declarative level) for the financial reporting in relation to the state institutions; the transition to the gradual implementation of International Accounting Standards/Financial Reporting (IAS/IFRS). We made also some assessments on the perspectives of using IAS/IFRS as a unique set of norms (as accounting basis for the preparation of individual financial statements) and we are pointing a series of costs and benefits of their application. To accomplish this work it has been carried out an analysis on the normalization of accounting and particularly on the accounting norms which apply in Romania.

Future of Banking after the Year 2000 …, 2000

Integration of each state into the world economic flows requires certain adjustments in different fields of economic life. One of the fields where coordination and harmony are necessary is the field of financial reporting. The worldwide financial community recognizes the need for one set of accounting standards, with added transparency and comparability. A desire of all who prepare, audit or use financial statements is one set of high quality accounting standards used globally by all private or public entities. Having a single set of standards helps to ensure consistency of accounting and reporting among all countries, which results in better and more efficient financial analyses of entities. This will result in more efficient flows of capital because investors will not have to assign risk premiums to entities operating in countries with inconsistent or low quality accounting standards. Finally, it will reduce costs because accountants, auditors, financial analysts, investors, and regulators will no longer be converting or reconciling financial statements from one set of standards to another. International Financial Reporting Standards makes significant progress toward global recognition. For private sector, IASB issued IAS/IFRS and for public sector IFAC issued IPSAS/IPSFRS. Annual statements included explanatory notes with information regarding completion of the financial plan, difficulties leading to failures in the fulfillment, and predictions on the completion of the plan. Operating results were less important. Profit or loss statement was included as an appendix to the balance sheet. These statements were not publicly available but directed to the Ministry of Finance and regional statistical offices.

The Annals of the University of Oradea, 2021

It is valuable to take note that the majority of financial reporting pundits are in agreement that the financial reporting system of a country depends on several factors that include the legal, economic, and cultural background; The development of tasks performed by accounting is persistently inspired by needs of practice. It is clear of that accounting schemes play an essential role in the market economy, particularly in face of globalization of capital markets, where increasing need for comparable, transparent financial statements for the companies. Rather, it is proposed to present information that is used in making reasoned options amongst alternative uses of limited resources in the conduct of business and economic activities. The present paper discusses the possibilities to improve the accounting policies and procedures in Jordan and other Middle East countries in accordance with commitment of the International Financial Reporting Standards (IFRS). Throughout this study we used a qualitative approach, to outline an overview of the history of financial reporting and its evolution from the origin, to the growth and development of accounting systems by studying a considerable amount of bibliographic material, using different textbooks and journals on accounting theories but also public information presented by the accounting organisations and the government of the two analysed countries. Furthermore, the paper reviewed the achievements made in the convergence of International Financial Reporting Standards (IFRS), in the Middle East countries, in Jordanian context and in the European Union, specifically the case of Romania. International financial reporting standard (IFRS) implementation in Jordan has departed through several transitional phases wile in our previous work we noticed that Romania can be considered a benchmark of high degree convergence to IFRS.

Risk in Contemporary Economy, 2015

At the level of the European financial system, banks are the basic institutions which provide financing for the private sector, it preferring bank financing at the expense of financing through the capital market. The current stage of the international accounting harmonisation process focuses on obtaining similar economic decisions taken by investors and other users of the financial statements – decisions based on equivalent financial statements, prepared according to the set of International Financial Reporting Standards - IFRS developed by the IASB. Therefore, the aim of this study is to provide an overview of the implementation of IFRS in the world as well as in Romania by providing some information about the adoption process and the issues identified through the implementation of IFRS, especially in the banking field in Romania

Social Science Research Network, 2017

In France, the European accounting directive has been implemented via a decree and a ministerial order, issued without any public consultation and which led to an amendment of the Commercial Code and three regulations released by the Autorité des normes comptables, the French standard-setter. Our analysis of those texts reveals that none of them refer to International Financial Reporting Standards (IFRS). We did not find evidence of any reference to IFRS from the Autorité des marches financiers, the French market regulator, in its decisions on the right application of French Generally Accepted Accounting Principles by listed companies. Hence, IFRS seem to have played a minor role in the recent modification of French regulations resulting from the implementation of the European accounting directive.

Accounting in Europe, 2011

Procedia Economics and Finance, 2014

Starting from 2012, listed Romanian entities have to Financial Reporting Standards. This study is focused Standards and IFRS when financial information is analys on BSE and tries to demonstrate if statistically any signif accounting measures and financial ratios. An analysis up specialisation, was conducted. The results reveal that no observed. The relevance could be identified at variance one. Regarding the subsample analysis, the results are mix

European Accounting Review, 2014

This study combines Dillard et al.'s [(2004). The making and remaking of organization context: Duality and the institutionalization process. Accounting, Auditing & Accountability Journal, 17(4), 506-542] institutional change model with institutional entrepreneurship theory. The aim is to enhance understanding of institutional change processes when a country adopts international accounting standards. For empirical support, we focus on the changes in social structures and accounting practices that arose in 2010 when Portugal replaced its national accounting system for unlisted companies, with a new system of accounting based on International Financial Reporting Standards. We reveal how an evolving socioeconomic and political context, and the embedding of central actors in multiple fields, facilitated entrepreneurial action by actors who took political opportunity, mobilised important allies, and accommodated the interests of major protagonists. We draw attention to the possibility of an earlier inversion of the cascading institutionalisation process than is envisaged by Dillard et al. (2004). At the organisational field level, we highlight how national professional accounting associations and business associations can shape criteria established at the political and economic level, thereby counteracting the institutionalisation process. At the organisational level, we focus on the accounting standard for small and medium-sized entities. We provide insights to why some accountants maintained structures of meaning associated with the previous accounting system.

2019

Drawing upon the experience of adoption of an International Financial Reporting Standards (IFRS)' based model by Portuguese non-financial unlisted companies in 2010, designated Sistema de Normalização Contabilística (SNC), this research sheds light on the potential of the IFRS model to conform to countries and jurisdictions whose accounting system is remarkably disparate as it was Portugal's. From a vantage point in 2017, seven years after the formal implementation of the IFRS-based model, sixteen detailed interviews with statutory auditors were carried out to explore their perceptions regarding dimensions of relevance and suitability of the new accounting model to the Portuguese setting, major difficulties and benefits brought about. Evidence were gathered suggesting a significant level of legitimation and institutionalisation of the IFRS-based model: (i) the perceived motivations for SNC adoption are a good fit with the theoretically acknowledged motivations underlying acc...

2016

In recent years, the evolution of accounting normalization at an international level has been marked by increasing efforts on behalf of the IFRS Foundation, met with a wider openness from various domestic accounting regulating bodies. Although the process has entered a stage of rapid success, in comparison with the last decades of the 20 th century, the completion of harmonization is still far from reaching an end point. The current paper undertakes a comparison between the United States of America and Romania, as representatives of the Anglo-Saxon and Continental accounting traditions; having the aim of offering a better understanding of the various contextual and inherent difficulties faced by the IFRS conversion process.