Considerations Regarding the Increase in Quality of Annual Financial Information in a National and International Context

Author:Univ. Prof. Magdalena MIHAI, Ph. D.; Associate Prof. Cristian DRĂGAN, Ph. D.; Associate Prof. Valeriu BRABETE, Ph. D.; Assistant Prof. Adriana IOTA, Ph. D. Student

JEL:M41, M49

DOI:

Keywords:annual financial information, quality attributes relevance and credibility, professional judgment

Abstract:
The research of the issues discussed in the present paper were made in the context of divergent conceptual approaches regarding the normalization of accounting on a global scale, based on principles, fundamental concepts, detailed accounting rules and principles made only for annual financial statements. These two versions of normalization are defined succinctly, with references to IASB concepts through IFRSs and also to Romanian concepts, through detailed rules or regulations. By examining these two essential ways of accounting normalization, through the use of references, several significant issues and pertinent opinions were raised that may favorably influence the quality of annual financial information and the exercising of professional judgment in the realization of this purpose. In this regard, it is considered that more clarifications, explanations or reviews regarding information’s quality attributes are advisable, and most of all those regarding the credibility and relevance of financial information, but also the reconsidering of the importance attributed to the quality known as intelligibility. In addition, the responsibility of professional judgment has been highlighted, but also some difficulties it is confronted with due to insufficient guidance from the normalizers.\r\n

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