Prudence vs. Credibility. A Formal Comparative Analysis between Romanian Accounting Regulations and IFRS
Author:
Claudia Catalina CIOCAN
JEL:
M41, M48
DOI:
10.20869/AUDITF/2019/153/004
Keywords:
Romanian accounting regulations, IFRS, similarity, convergence, accounting policies
Abstract:
Starting from the controversial influence that prudence
may have on the credibility of accounting information
and from the fact that there are different views of the
global accounting systems on this concept, the present
research aims to analyze the level of formal
convergence between the Romanian accounting
regulations and the International Financial Reporting
Standards (IFRS) on the application of prudence. In this
regard, the requirements for provisions, property, plant
and equipment, inventories and receivables were
considered, with a focus on asset depreciation and
impairment losses, elements that were considered in this
case as being representative for prudence in accounting.
Using the Jaccard coefficients, the paper compares the
requirements of the Romanian accounting regulations,
represented by OMFP no. 1802/2014 with the ones
presented in IAS 16 „Property, plant and equipment”,
IAS 36 „Impairment of Assets”, IAS 38 „Intangible
Assets”, IAS 37 „Provisions, Contingent Liabilities and
Contingent Assets”, IAS 32 „Financial Instruments:
presentation” and IFRS 9 „Financial Instruments”. The
results show that the highest degree of convergence is
identified for the provisions, and the lowest for financial
assets. Also, the requirements on depreciation and
impairment losses presented in OMFP no. 1802/2014
differ significantly from those presented in IFRSs.
Abstract(232KB)
Article(350KB)