eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2019-02-01 17 153 79 92 10.20869/AUDITF/2019/153/79 9601 article Information presented to stakeholders through a system of standardized indicators and transparency in financial reporting are the basis in the decision-making process for a sustainable development of the companies. The purpose of this study is to analyze and assess the transparency in financial reporting, assessed based on the audit opinion, and the influence of determinant factors on transparency, using logistic regression. The determinant factors are expressed by principal dimensions of financial statements identified through the Principal Component Analysis applied on the indicators of position and performance. The observed sample consists of 62 companies listed on Bucharest Stock Exchange during the period 2011-2016. The main results reveal the existence of three principal components of the financial statements, Cash flow component, Return component and Current assets structure component; among these dimensions, only the return component has significant influence on transparency in financial reporting assess through the audit opinion. http://revista.cafr.ro/temp/Article_9601.pdf sustainable development transparency financial reporting audit opinion principal component analysis logistic regression eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2019-02-01 17 153 93 105 10.20869/AUDITF/2019/153/93 9602 article The objective of this article is to identify the relationship between the quality of services provided by the financial auditors and its determinants, among which the initial and continuing training of auditors occupies an important place as long as their authorization depends on achieving an adequate level of education and professional training. It has been taken into account the fact that the purpose of public interest entities has become global, and the ethical and professional challenges to which auditors are exposed are becoming more and more difficult to manage. To this end, it has set out from the initial and continuous education and training requirements recommended by the International Education Standards Board and there have been corroborated the obtained information with the results of other studies addressing the current challenges faced by the financial auditors (more and more regulations, changes in the financial and non- financial reporting, technology development and increase of business complexity), while trying to answer the question regarding the effect of these challenges on the audit quality. The analysis was a qualitative one that pursued the researchers` concerns about the audit quality in order to identify the best ways to improve it. The article has a direct practical use both for the financial auditor organizations and the statutory audit oversight authorities to guide the continuing professional training, as well as for the financial auditors and audit firms which can better manage their work in order to increase the quality of the services they offer. http://revista.cafr.ro/temp/Article_9602.pdf audit quality education professional development the International Education Standards eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2019-02-01 17 153 106 113 10.20869/AUDITF/2019/153/106 9603 article Radical changes have been introduced in the hedge accounting framework by the new IFRS accounting standards. In particular, the hedge effectiveness regime has been completely overhauled and replaced by a strong principles-based charter. The relevance of qualitative assessment procedures has, accordingly, increased making the audit of such assignments immensely challenging. Pronouncements from regulatory bodies providing professional guidance on audit issues of hedge accounting and effectiveness testing have failed to keep pace with this rapid transition, enhancing the complexity of such audit exercises. In the present article, after providing a brief analysis of the contemporary hedge accounting and effectiveness testing provisions, we dwell upon the salient issues connected with the auditor’s predicament and highlight the way forward in the changed environment. http://revista.cafr.ro/temp/Article_9603.pdf IFRS 9 audit hedge accounting risk management eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2019-02-01 17 153 114 123 10.20869/AUDITF/2019/153/114 9604 article 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. http://revista.cafr.ro/temp/Article_9604.pdf Romanian accounting regulations IFRS similarity convergence accounting policies eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2019-02-01 17 153 124 133 10.20869/AUDITF/2019/153/124 9605 article As part of the major international developments on financial reporting and auditing, the International Financial Reporting Standards (IFRS), which are now applied in many countries around the world, are creating an international harmonization and a common language for financial reporting and accounting between firms that apply and report in accordance to these standards. This paper empirically tests whether adoption of IFRS in developing and transitional Kosovo, has impact on bank`s loan terms and conditions for companies that are mandatory adopters of IFRSs. To test the hypothesis, the authors analyzed the opinions of the banking sector and of companies that are mandatory adopters of IFRSs in Kosovo. The research results suggest that the adoption of IFRSs in Kosovo has impact on interest rates offered by banks to mandatory adopters, as well as on non-financial loan terms such as: loan time limits, mortgage requirements, lower administrative costs and renegotiating loan terms. Mandatory IFRS adopters have a better loan rating compared to other companies in Kosovo and the percentage of non-performing loans is lower for mandatory IFRS adopters in Kosovo. Based on this research, the aim is to demonstrate to policy makers and other stakeholders that only the mere implementation of high quality financial reporting standards, such as IFRSs, is not sufficient to improve the quality of accounting and financial reporting in Kosovo, especially since there are no institutional mechanisms to empower the implementation of IFRSs. For companies in Kosovo receiving better loan terms from banks can be an incentive to improve their financial reporting systems, but the focus is also on other benefits that should be considered as well. http://revista.cafr.ro/temp/Article_9605.pdf IFRS financial statements cost of borrowings loan terms disclosures transparency accountability eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2019-02-01 17 153 134 141 10.20869/AUDITF/2019/153/134 9606 article The proposed study analyzes developments and perspectives of soft and hard law in the context of corporate governance. Thus, at the level of the specialized literature, a series of studies were conducted on the role of effective corporate governance as well as on the evolution and prospects of soft and hard law on information transparency. For the purpose of the analysis, the authors conducted a qualitative study on the evolution and prospect of soft and hard law in the context of corporate governance. The results show that corporate governance has evolved more and more in the post-economic crisis and a greater emphasis is placed on the transparency of the information provided in conjunction with the revival legislation. http://revista.cafr.ro/temp/Article_9606.pdf corporate governance law capital market financial crisis eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2019-02-01 17 153 142 148 10.20869/AUDITF/2019/153/142 9607 article The present research explores the strategic orientation of listed companies, with a focus on their mission, vision, and values, that defines the aspirations and the goals that govern that organization. The data were collected from the official websites. Based on the literature review there were identified the main missions, values, and visions, that were grouped, after analyzing all the financial and non-financial reports, within categories, such as emphatic values/people oriented, cultural values, workplace values. Because one of the most important stakeholder within any organization is represented by the employee, the authors also grouped them within identity reflected (relational, organization, workplace, competence/professional). Results are mixed and show that only 62% of companies disclose information regarding their vision, 85% of them disclose information regarding their mission, while 54% of companies disclose their values. The main objective of the classification is to establish a framework for a future template of corporate social responsibility. The relevance of the research is given by the topicality of the research. The originality of the research derived from the modality of approaching the theme, from the objective of the research and also from the fact that there is an increasing interest in society, in general, for promoting accountability, respect for human rights, environment, health and security. The objective of the present research is to highlight the important role of vision, mission and values of a company. These represents the pillars for a successful organization and may be disclosed in separated statements or may be integrated in a single statement. Their purpose is to communicate to both internal and external stakeholders the main goal of the organization. http://revista.cafr.ro/temp/Article_9607.pdf mission vision values corporate social responsibility