Prudent developments in IFRS introduction in the public institutions in Romania
Author:
Associate Professor, PhD. Elena-Doina DASCĂLU
JEL:
DOI:
Keywords:
accrual, public sector, standards, regulations, cash flows, budgetary execution
Abstract:
The obligations assumed as part of the position statement adopted in Chapter 11 - Economic and Monetary Union implies also the report on the statistical data in the public finance area observing the provisions of the European System of Accounts and of the regulations issued for the application of these norms. At the same time, being a member of the International Monetary Fund imposes the obligation to report on the data according to the norms issued by this institution. \r\n\r\nThe current article provides a synthesis of the main processes at the International Federation of Accountants level for the development of the international financial reporting standards, as well as the position adopted by the European Commission on the financial reporting of the public entities, considering the new concept of "recording the processes using the accrual method, respectively at the date of inception, transformation, disappearing/voiding of an economic value, of a receivable or of a debt". \r\nThe basis for restructuring the statistic system for the public finance in Romania and the provisions of the Order of the minister of public finance no.1917/12.12.2005 on the approval of the methodological Norms for the accounting organizing and conducting for the public institutions, the Chart of Accounts for the public institutions and the instruction for their application there are presented.\r\n\r\nAlthough the recommended principles for the financial statements has been taken, the process of convergence to the international standards will continue, by introducing them step by step, as recommended by the European Commission, the full implementation of IPSAS being a long process, especially considering that the IPSAS Board has not developed standards covering all the issues related to the public sector.\r\n