Accounting Objectives and Concepts Specific to IFRS Implementation
Author:
Univ. Prof. Magdalena MIHAI, Ph.D.; Associate Prof. Cristian DRĂGAN, PhD.; Associate Prof. Marin CIUMAG, PhD.; Assistant Prof. Adriana IOTA, PhD
JEL:
M41, M49
DOI:
Keywords:
IFRS, IAS, conditions for implementation, demanding documentation relevant information
Abstract:
The careful examination of International Financial Reporting Standards and of the works which are in line with the topic, as well as the practical documentation performed on the audit occasion of several financial statements according to these standards allowed the identification of some shortcomings that significantly diminished the quality of the obtained results. It was also concluded that the better results we are referring to are possible, mainly by solving the appropriate conditions or premises needed to implement the mentioned standards. Considering these operations the authors believed appropriate and beneficial for the concerned entities to point the study to three conditions mentioned by the International Accounting Standards Board (IASB) at the beginning of each IAS, and namely: The Preface to IFRS, The General and Conceptual Framework and IAS 8 "Accounting Policies, changes in accounting estimates and errors". Moreover, they emphasized the finding that these conditions are neglected in practice for subjective reasons (exemplified in the article) and thus the accounting adopted treatments are significantly affected, and the obtained information diminishes its relevance. These conditions mentioned above represented the target of the research and they are embodied in the form of some distinct works (components) of the IFRSs, which have been examined and discussed in terms of extending the applications of these standards, at national and particularly at international level. Furthermore, it was intended to achieve the goal of contributing to the increase of the favorable influence on the quality of the accounting treatments that are adopted or, in the conventional formulation, to correspond to the "letter" and the "spirit" of IASs or, where appropriate, the "spirit" of the invoked regular works, indicating that, in this respect, there have been references to the involvement of the financial audit.