The accounting result between principles and rules

Author:PhD. student Iulia JIANU

JEL:

DOI:

Keywords:result, rules, policies, instruments, intent, performances

Abstract:
This article shows how the result is influenced by rules fixed accordingly with the lack of adequate principles.\r\n\r\nFor a long time the accounting result was and continues to be considered today, the main indicator for measuring the enterprise performances. It says that when the enterprise gains the profit it is profitable. In the actual context of normalization, where there isn’t more options to reveal the same transaction, there isn’t an objective result.\r\n\r\nThe result may vary between a series of limits without having as an effect, inside this area, a level of result that could be considered more representative than the other. The decrease of the number of options reduces the volatility of the result.\r\n\r\nThe simple difference between the incomes and the expenses, the result becomes a date partially choused. In our days it is not possible anymore to judge correctly the performance of a company, having as a starting point the financial statements, if we do not know in detail the accounting policy of the company.\r\n\r\nThe standards based on principles aren’t always more precise than the standards based on rules, and the examples presented in this article support these affirmations.\r\n

---