Template-Type: ReDIF-Article 1.0 Author-Name: Claudia Catalina CIOCAN Author-Email: ciocan_claudia_catalina@yahoo.com Author-Workplace-Name: "Alexandru Ioan Cuza" University of Iasi, Romania Author-Name: Mihai CARP Author-Email: mihai.carp@feaa.uaic.ro Author-Workplace-Name: "Alexandru Ioan Cuza" University of Iasi, Romania Author-Name: Iuliana GEORGESCU Author-Email: iuliag@uaic.ro Author-Workplace-Name: "Alexandru Ioan Cuza" University of Iasi, Romania Title: The Determinants of the Financial Reporting Quality: Empirical Evidence for Romania Abstract: The issue of the financial reporting quality has aroused the interest of several researchers whose views converge on the idea that it can be influenced both by factors related to the internal environment of the company, the corporate governance system, the activity of auditors and not only, and also by macroeconomic factors, such as the legal and political system of a country or community or certain accounting/ tax policies. The objective of the research is to highlight, starting from a model validated by Iatridis (2011) for companies in the United Kingdom, the way in which microeconomic factors influence the financial reporting quality of Romanian companies listed on the Bucharest Stock Exchange. The analysis is carried out for the 2013-2019 period. The results indicate that the companies that produce high quality financial reports are large and generally have a high operating cash flow rate, relatively low provisions and disclose more information. Also, these companies are audited predominantly by auditors who are not part of the BIG 4 group. Classification-JEL: G30, M41 Keywords: financial reporting quality; qualitative characteristics; determinants of financial reporting quality; conservatism; Pages: 301 Volume: 19 Issue: 162 Year: 2021 Month: May File-URL: http://revista.cafr.ro/temp/Article_9666.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:19:y:2021:i:162:p:301 Template-Type: ReDIF-Article 1.0 Author-Name: Elena NECHITA Author-Email: elena.nechita@cig.ase.ro Author-Workplace-Name: The Bucharest University of Economic Studies, Romania Title: The Value Relevance of Non-Financial Reporting in Determining the Market Value of Equity Abstract: The value relevance of non-financial reporting is a topic of interest in the academic literature, the results of empirical research being often contradictory. In this context, the research objective is analysing the extent to which the disclosure of non-financial information related to sustainable development in the contents of sustainability reports published by companies listed on the regulated market of the Bucharest Stock Exchange (BSE) is influencing their market value. To conduct the analysis, the present study involves the application of multiple linear regression models developed based on the Ohlson (1995) model for a sample of 34 companies listed on BSE between 2015-2019, forming a number of 166 firm-year observations. The research methodology is based on the association between the firm market value and its equity book value, as well as its net income and other relevant information. Therefore, the value relevance is investigated through their impact on the market value. The findings emphasise an increase in relevance in terms of the influence exerted on the market value of capital as a result of reporting on sustainability issues. Moreover, the study highlights an increase in the impact of equity book value and net income on firms’ market value in the period after the adoption of Directive 2014/95/EUD (2017-2019), compared to the previous period (2015-2016). This research complements the literature in the field of sustainability reporting and value relevance, providing empirical evidence on the importance of publishing non-financial information in relation to their market value impact. Classification-JEL: M40, M41, Q56 Keywords: sustainability; Sustainable Development Goals (SDG); value relevance; market value; listed companies; empirical research; Pages: 320 Volume: 19 Issue: 162 Year: 2021 Month: May File-URL: http://revista.cafr.ro/temp/Article_9667.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:19:y:2021:i:162:p:320 Template-Type: ReDIF-Article 1.0 Author-Name: Laura-Eugenia-Lavinia BARNA Author-Email: lauralavinia17@gmail.com Author-Workplace-Name: The Bucharest University of Economic Studies, Romania Author-Name: Bogdan-Stefan IONESCU Author-Email: bogdan.ionescu@cig.ase.ro Author-Workplace-Name: The Bucharest University of Economic Studies, Romania Author-Name: Dumitru-Florin MOISE Author-Email: moisedumitruflorin@yahoo.com Author-Workplace-Name: Timac-Agro Romania Title: The Influence of Integrated Systems on Company Performance and Sustainability Abstract: In this paper, the authors investigated the evolution of ERP-type integrated information systems and analysed the presentation of their main concepts and features, limited to the performance and sustainable development of the enterprise. Integrated ERP systems play an important role in managing and conducting the day-to-day business of an organization (irrespective of being small, medium or large companies). The research method used to justify the impact of ERP systems on the performance and sustainability of the organization was the archive analysis (review of the literature), doubled by a quantitative empirical research based on a questionnaire. The analysed information was collected from over 20 papers by Romanian and foreign authors, published in various scientific journals, specialized books and conference proceedings, as well as based on the answers received based on a questionnaire intended to prove that the integrated ERP systems contribute to improving the sustainable development and performance of the organization, by reducing costs and protecting the environment, increasing the quality of decision-making, productivity and data volume management. Following the study, the authors concluded that the evaluation of the processing of the volume of data generated by ERP systems, as well as the consistency, quality and clarity of information are representative factors on the impact of ERP systems on the sustainable development of organizations, in order to ensure the performance of the organization in the short, medium and long term. Classification-JEL: C88, M15, M40, M41, P42 Keywords: accounting; ERP systems; evolution; performance; sustainability; audit mission; Pages: 337 Volume: 19 Issue: 162 Year: 2021 Month: May File-URL: http://revista.cafr.ro/temp/Article_9668.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:19:y:2021:i:162:p:337 Template-Type: ReDIF-Article 1.0 Author-Name: Anca-Ioana BRINDUSE (NIMIGEAN) Author-Email: anca.brinduse93@e-uvt.ro Author-Workplace-Name: West University in Timisoara, Romania Author-Name: Ovidiu Constantin BUNGET Author-Email: ovidiu.bunget@e-uvt.ro Author-Workplace-Name: West University in Timisoara, Romania Title: Reconsidering Budgeting after the COVID-19 Outbreak Abstract: The financial field is experiencing unprecedented changes, as the effects of the COVID-19 outbreak are unraveling. One of the main challenges the managers have to face is the elaboration and implementation of the budgets. During 2020, companies worldwide had to continuously adjust the budgets which were already approved before the pandemic. But, as everyone understood that the world is not facing just a temporary situation, executive leaders had to also reconsider their budgeting process, taking into consideration the uncertainties of the future. It was clear that the traditional way of developing a budget, based on historical information, was no longer relevant and a new process should be implemented. Therefore, the aim of this paper is to put into discussion which would be the best alternative to the traditional budgeting process. Based on the thorough analysis of the reports published by relevant organisms and firms, the authors concluded that the best alternative would be the zero-based budgeting technique. The paper presents the benefits of this method, but also a guideline regarding the implementation of this process. Classification-JEL: M40, M41 Keywords: COVID-19; budgeting; accounting; Zero-Based Budgeting (ZBB); Pages: 351 Volume: 19 Issue: 162 Year: 2021 Month: May File-URL: http://revista.cafr.ro/temp/Article_9669.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:19:y:2021:i:162:p:351 Template-Type: ReDIF-Article 1.0 Author-Name: Lioara-Veronica PASC Author-Email: lioara.pasc73@e-uvt.ro Author-Workplace-Name: West University of Timisoara, Romania Author-Name: Camelia-Daniela HATEGAN Author-Email: camelia.hategan@e-uvt.ro Author-Workplace-Name: West University of Timisoara, Romania Title: Reporting Significant Transactions with Affiliated Parties of Listed Companies on Stock Exchange Abstract: The complexity of related party transactions may lead to subjective interpretations of their reporting requirements. The objective of the paper is to examine the nature of significant transactions with related parties, how they were reported in accordance with legal requirements, and how the reported issues are correlated with the information in the annual financial statements. The study includes a synthesis of the evolution of specific regulations in Romania, as well as a centralization of the information highlighted in current reports published by entities and annual reports for 2017-2019, in order to identify issues to consider in the process reporting and publishing, in the case of companies carrying out such transactions. The sample consists of energy companies listed on the Bucharest Stock Exchange, included in the BET index, in which the state is the majority shareholder. The results of the study showed that reporting requirements have changed over time, both in terms of defining transactions and mandatory reporting ceilings. The analysis found different interpretations of companies on reporting obligations which can lead to difficulties in correlating and comparing data in the context of corporate transparency. The conclusion is that additional factors arise when reporting these types of transactions, which must be taken into account so that there is no impact on their completeness and accuracy, without affecting the auditor's opinion. Classification-JEL: M42, M48, M41, G38 Keywords: significant transactions; related parties; auditor; reporting; transparency; Pages: 359 Volume: 19 Issue: 162 Year: 2021 Month: May File-URL: http://revista.cafr.ro/temp/Article_9670.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:19:y:2021:i:162:p:359 Template-Type: ReDIF-Article 1.0 Author-Name: Daniela PORDEA Author-Email: danapordea@gmail.com Author-Workplace-Name: West University of Timisoara, Romania Author-Name: Alin-Constantin DUMITRESCU Author-Email: alin.dumitrescu@e-uvt.ro Author-Workplace-Name: West University of Timisoara, Romania Title: Convergence to IFRS in Romania – Score per Minute Abstract: The current stage of evolution of our society includes the extension of economic, social and political phenomena beyond the physical boundaries that history has drawn and thus requires a change in approach to accounting by adapting specific practices to the new needs of the market. The impact of digitization leads to the visible dissolution of borders and the generalization of accounting practices and tools. The accounting profession is moving towards increasing standardization and national regulations in this area tend to become more international, in an attempt to optimize one of the most important qualities of financial reporting: comparability. In this context, the present study aimed to compare and analyze the divergences between the Romanian accounting regulations applied according to EU Directive 34/2013 through the Order of the Minister of Public Finance no. 1802/2014 for the approval of the Accounting Regulations regarding the individual annual financial statements and the consolidated annual financial statements (OMFP 1802/2014) and the International Financial Reporting Standards. In terms of research methodology, the authors’ approach is a qualitative one with quantitative elements, starting from the analysis of the relevant literature in order to understand and deepen the general context. To investigate the main similarities and differences between the sets of accounting rules the comparative method was used, but also tools specific to quantitative methods for the mathematical calculation of convergence scores between OMFP 1802/2014 and IFRS. Although the Romanian accounting framework has been aligned in many respects with the international one, the obtained results reveal a series of divergences between the two sets of regulations, materialized in different ways of approaching economic transactions. Classification-JEL: M41, M48 Keywords: accounting regulations; convergence; comparability; IFRS; Pages: 373 Volume: 19 Issue: 162 Year: 2021 Month: May File-URL: http://revista.cafr.ro/temp/Article_9671.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:19:y:2021:i:162:p:373 Template-Type: ReDIF-Article 1.0 Author-Name: Luminita-Georgiana ACHIM Author-Email: luminita.achim28@gmail.com Author-Workplace-Name: Bucharest University of Economic Studies, Romania Author-Name: Elena MITOI Author-Email: elena.Mitoi@gmail.com Author-Workplace-Name: Bucharest University of Economic Studies, Romania Author-Name: Marian Valentin MOLDOVEANU Author-Email: moldoveanu.valentin3@gmail.com Author-Workplace-Name: Bucharest University of Economic Studies, Romania Author-Name: Codrut-Ioan TURLEA Author-Email: turleacodrut@gmail.com Author-Workplace-Name: Bucharest University of Economic Studies, Romania Title: Credit Scoring – General Approach in the IFRS 9 Context Abstract: With the coming into force of the standard IFRS 9 – Financial Instruments, in January 2018, financial institutions passed from an incurred loss model to a forward-looking model for the computation of impairment losses. As such, the IFRS 9 models use point-in-time, estimates of Probability of Default and Loss Given Default and provide a more faithful representation of the credit risk at a given as they are based on past experiences as well as the most recent and forecasted economic conditions. However, given the short-term fluctuations in the macroeconomic conditions, the final outcome of the Expected credit loss models is highly volatile due to their sensitivity to the business cycle. With regard to Probability of Default estimation under IFRS 9, the most commonly methods are: Markov Chains, Survival Analysis and single-factor models (Vasicek and Z-Shift). The development of the score-cards is still the same as in the case of the Internal Ratings Based Probability of Default models, encouraging institutions to use the already available credit rating systems and perform adjustment to the calibration. This paper outlines a non-exhaustive list of quantitative validation tests would satisfy the requirements of the IFRS 9 standard. Classification-JEL: M41, M21 Keywords: IFRS 9; credit scoring; statistic tests; financial institutions; Pages: 384 Volume: 19 Issue: 162 Year: 2021 Month: May File-URL: http://revista.cafr.ro/temp/Article_9672.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:19:y:2021:i:162:p:384