Priorities and Responsibilities in the Process of Expanding Application of the International Financial Reporting Standards (IFRS) in Romania

Author:Univ Prof., PhD Maria MANOLESCU, Univ. Prof., PhD Ana MORARIU, Associate Prof., PhD Aureliana Geta ROMAN, PhD Student Mihaela MOCANU

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Keywords:public interest entities, financial reporting, accounting policies, accounting estimates, users of accounting information, estimated risks and materiality thresholds

Abstract:
Through the present study it was aimed at emphasizing mainly the issues regarding the priorities and responsibilities of statutory auditors in the process of expanding the application of IFRS in Romania, priorities and responsibilities resulted from the research conducted on some units considerd representative by the authors. The research had as purpose to evaluate the ability to implement the IFRS and referred to the entities that had the obligation to apply these standards for the year 2007, in accordance with the provisions of the Order of the Ministry of Public Finance no. 1121/2006 (through which Romania adopted the provisions of the Regulation no. 1606/2002 of EC), as well as to the entities that chose to apply IFRS, either at the request of creditors, namely credit institutions, or at the request of the shareholders. The necessity of knowing the representative elements regarding the application of IFRS, the methods for evaluating the balance sheet items, the estimated risks and the materiality thresholds, the techniques of accounting and financial estimation, and, last but not least, knowing how the cost-benefit ratio incurred by preparing the financial statements on the basis of IFRS is understood derives from the natural process of expanding the implementation of IFRS in the following time span on all categories of public interest entities from our country.\r\nThe authors considered necessary to point out the aspects regarding: the increasing interest of the users of accounting information with respect to the quality of financial reporting; involvement of financial auditors in assisting analyzed entities and potential risks generated by this process; aspects related to the reduced use of techniques for estimating the useful lives of tangible and intangible assets and the use of fiscally allowed life durations, either because of too high costs generated by these estimates, or due to lack of specialists (as some entities justify) etc. \r\n\r\n \r\n

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