Research upon the IFRS Transition of Investment Firms
Author:
Univ. Prof. Tatiana DĂNESCU, Ph. D.; Univ. Lecturer Ovidiu SPĂTĂCEAN, Ph. D.; Teaching Assistant Mihaela MATEIU (MAN), Ph. D. Student
JEL:
M42
DOI:
Keywords:
investment firms, IFRS reporting, financial performances, IFRS compliance adjustments, inherent limitations, difficulties of implementation, cost-benefit analysis
Abstract:
The process of adoption and implementation of International Financial Reporting Standards (IFRS) is arousing a great interest in the context of capital markets’ globalization, being subject of extensive current research whose results may generate some real controversy. The transition to IFRS-based reporting system could not bypass the category of authorized, regulated and supervised entities in the capital market area, which became the subject of applying IFRS beginning from the reporting period ended at 31 December 2011. This paper aims to capture some controversial aspects regarding the application of IFRS by the investment firms, as intermediaries in the Romanian capital market landscape. Identifying and analyzing the strengths and significant weaknesses associated with the process of transition to IFRS reporting, as well as assessing the impact of IFRS adoption on the financial performance reported by these entities, reflect other major objectives assumed during the investigative steps that have supported the authors’ research.