The Evolution of the Financial Accounting Concepts - Past, Present and Future

Author:Associate Professor PhD. Paul DIACONU, Univ. Lecturer PhD Student Nicoleta COMAN, Univ. Lecturer PhD Student Cătălina GORGAN, Univ. Lecturer PhD Student Vasile GORGAN

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Keywords:international accounting, investors, fair value, accruals, cash accounting

Abstract:
In this paper the authors have explored the evolutionary process in the accounting and the evolution of the concepts in the financial accounting. They have tried to realize a parallel between the evolution of the global economy in general and the accounting evolution. Looking in the future, the authors have identified the new steps which will be followed by the global economy and the society and based on these evolutions they have tried to anticipate which will be the evolutions in the accounting field. In this context the main concepts of accounting were inquired, such as: the historical cost or fair value, the accruals or cash accounting, etc. The authors have tried to answer questions like: „They will be replaced?” or „The perception will be different?”, „The new solutions as generalization of fair value in balance sheet will be embraced by the public or historic costs will survive?” This is a new dilemma, which this article will try to find an answer. The paper further lays out a number of point’s attendant with a ‘global economic redesign’, again with the aim of expanding the globalization and accounting research agenda introducing in this context the harmonization process in accounting which expand the new solutions.

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