The Relevance of Financial Accounting Information in Crisis Situations
Author:
Univ. Prof. Nicolae TODEA, Ph. D., Ioana CĂLEAN, Ph. D. Student
JEL:
M40
DOI:
Keywords:
relevant information, financial position, performance, decisions
Abstract:
Providing information regarding the financial situation of enterprises is a major objective of accounting, achieved through the regular publication of financial reports. Therefore, the financial accounting information is the basis for the decision makers, who need information whose benefits are greater than the associated costs and specific features that are validated. In contrast, we can find in the practice of the entities two types of information: information about the real situation of the economic activity and information intended to manipulate the external users to invest in toxic securities or in other non-performing assets. The current situation of the global economy was therefore also generated by misleading or deceiving information, which inevitably had a considerable impact on the current global crisis. The imposed measures to be taken in these situations are quite tough and suppose economical constraints for the majority of the citizens of a country. \r\n\r\n\r\n \r\n