The Enterprise Accounting Options and Policies, between Fair View and Intention Accountancy

Author:Lecturer, PhD. student Dănuţ CHILAREZ, Assistant, PhD. student Flavia STOIAN



Keywords:creative accounting, measurement, accounting policies, professional judgment, credibility, provisions for risks and expenditures, accounting profit/loss, taxable profit/tax loss

The variety of interests related to the enterprise evolution could lead sometimes to certain subjective attitudes concerning the measurement and estimation in accountancy, moreover when a group of interests guided by its own objectives may apply the ensemble of techniques, options and freedoms allowed by accounting regulation by taking advantage of accounting and juridical regulation flexibility, engraving in this manner an optimistic or pessimistic subjective attitude on financial statements, remaining however in the accounting exigency limits.\r\n\r\nThe interpretation and application of certain measurement provisions and accounting principles gave birth to certain divergences in European Directives implementation process. Although The IV th Directive doesn’t allow any derogations in a certain accounting principle applying process, it is very difficult to establish if that principle will be applied in the same manner in practice, taking into account different situations. \r\n\r\nThere is also a large variety of situations in which, although there is no precise intention in order to achieve a certain scenario, the existence of more than one applicable accounting policies and options or the existence of certain freedoms in accounting regulation interpretation, when the regulation does not provide a precise solution for a certain case, could lead to a final point where the financial statements would not be able to offer a fair image.