Financial Reporting According to IFRS 8 – Does It Lead to an Informational Improvement of the Resource Allocation Decision Making Process?
Author:
Univ. Prof. Nicoleta FARCANE, Ph. D.; Lecturer Rodica BLIDIȘEL, Ph. D.; Lecturer Ștefana Maria DIMA, Ph. D.
JEL:
Clasificare JEL: JEL M41, M48
DOI:
Keywords:
IFRS 8, reporting segments, management approach
Abstract:
This paper focuses on the practical adoption of IFRS 8 as well as on the presumptive capacity of segment reporting to improve investors’ ability to make pertinent decisions regarding the allocation of resources. Thus, the literature review reveals an extension of the number of disclosed segments as a result of IFRS 8 adoption, as well as the analysis of the determinants of such extension. The necessity of adopting IFRS 8 by the Romanian companies derives mainly from the presence of multinational companies in the domestic environment, but also from the existing correlations among the financial system’s components. \r\n