Standardization, Convergence and Compliance in Accounting Regarding the Financial Reporting
Author:
University Professor Victor MUNTEANU, Ph. D., Associate Professor Marilena ZUCA, Ph. D., Valentina ŢUGUI, Ph. D. Student
JEL:
M 40, M 41, M 48
DOI:
Keywords:
standardization, convergence, US-GAAP, IAS/IFRS, corporate guvernance, financial reporting
Abstract:
Owing to the global economy and the global capital markets the accounting norms have been standardized at international level. The achievement of the convergence in accounting assumes the elimination of the individual differences between the national and international accounting norms and also between US GAAP and the present IAS/IFRS. Thus, there will be a single set of high quality global accounting standards which demand clear information similar to general use situations. The convergence IASB – FASB has been carried on settling the year 2011 as a final step of the process. It was proposed 2013 to be the year when IFRS is applied in American companies.\r\nThe paths of regulators tend to meet. At international level, there are many attempts on the comparability of information provided by financial statements. \r\nThe study of the works in the field of accounting shows that the financial reporting norms, similar to the efforts for modernization of the accounting techniques, represent the basis for the corporate governance system at European level.\r\nTaking into account the harmonization path carried out so far by our country, the authors believe that the application of IFRS in Romania is the most reliable option with all problems related to: culture and traditional values, different legal system and law, acceptance of the primacy of principles over the detailed rules that have become tradition in Romania, and not least, trust in the professional judgment.\r\nOne of the most important consequences of the transition to IFRS is the opening towards the accounting occupation, which will reach its true value. The business environment, the users of information provided in the financial statements will have to rely more on the professional reasoning, to become increasingly aware of the professional accountant’s role in the organization and in the economy, in general.\r\n