Arguments Regarding the Adequate Implementation Capacity of the IFRS

Author:Univ. Prof. Magdalena MIHAI, Ph. D.; Associate Prof. Cristian DRĂGAN, Ph. D.; Anca CIUMAG, Ph. D. Student; Adriana IOTA, Master Student

JEL:M41, M49

DOI:

Keywords:IFRS, conditions to be fulfilled, implementation capacity, application options, relevant, plausible and transparent information

Abstract:
Following the conducted research, the authors noticed that both the international accounting standards and the national accounting regulations contain only provisions according to which “the entities are obliged to have the capacity to adequately implement the IFRS”. The way in which this expression must be understood, falls completely upon the practitioners and their professional reason, which, in authors’ opinion, represents a problem with a high risk of being solved in an unsatisfactory way. For this reason, they have directed their attention to this expression and, thus, they proposed and documented several conditions, which must be fulfilled, or possibilities according to which its requirements are accomplished, i.e.: shareholders’ or investors’ correct understanding of the necessity and opportunity to obtain relevant, plausible and transparent information; appointing competent and receptive persons who will fulfill the preliminary conditions for the implementation of the IFRS; designing the layouts of the corresponding financial situations; creating the adequate informational programs and completing the accounting policies with the treatments imposed by the IFRS. \r\n\r\n\t\r\n\r\n

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