[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/aud/audfin/v17y2019i153p114.html
   My bibliography  Save this article

Prudence vs. Credibility. A Formal Comparative Analysis between Romanian Accounting Regulations and IFRS

Author

Listed:
  • Claudia Catalina CIOCAN

    („Alexandru Ioan Cuza” University, Ia?i, Romania)

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.

Suggested Citation

  • Claudia Catalina CIOCAN, 2019. "Prudence vs. Credibility. A Formal Comparative Analysis between Romanian Accounting Regulations and IFRS," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 17(153), pages 114-114.
    • Handle: RePEc:aud:audfin:v:17:y:2019:i:153:p:114
    as

    Download full text from publisher

    File URL: http://revista.cafr.ro/temp/Article_9604.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nadia ALBU & Ioana PALARIE, 2016. "Convergence of Romanian accounting regulations with IFRS. A longitudinal analysis," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 14(138), pages 634-634, June.
    2. Ding, Yuan & Jeanjean, Thomas & Stolowy, Herve, 2005. "Why do national GAAP differ from IAS? The role of culture," The International Journal of Accounting, Elsevier, vol. 40(4), pages 325-350.
    3. Peng, Songlan & van der Laan Smith, Joyce, 2010. "Chinese GAAP and IFRS: An analysis of the convergence process," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 19(1), pages 16-34.
    4. Ding, Yuan & Jeanjean, Thomas & Stolowy, Herve, 2005. "Reply to discussion of "Why do national GAAP differ from IAS? The role of culture"," The International Journal of Accounting, Elsevier, vol. 40(4), pages 359-362.
    5. Garrido, Pascual & Leon, Angel & Zorio, Ana, 2002. "Measurement of formal harmonization progress:: The IASC experience," The International Journal of Accounting, Elsevier, vol. 37(1), pages 1-26.
    6. Alexandra Fontes & Lúcia Lima Rodrigues & Russell Craig, 2005. "Measuring convergence of National Accounting Standards with International Financial Reporting Standards," Accounting Forum, Taylor & Francis Journals, vol. 29(4), pages 415-436, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniela PORDEA & Alin-Constantin DUMITRESCU, 2021. "Convergence to IFRS in Romania – Score per Minute," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 19(162), pages 373-373, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:dau:papers:123456789/2091 is not listed on IDEAS
    2. Cristina-Petrina Drăgușin (Trincu-Drăgușin) & Ileana Cosmina Pitulice & Aurelia Ștefănescu, 2021. "Harmonisation and Emergence Concerning the Performance Audit of the EU Member States’ Public Sector. Romania’s Case," Sustainability, MDPI, vol. 13(7), pages 1-18, March.
    3. Cristina Silvia Nistor & Cristina Alexandrina Stefanescu, 2012. "Public vs. Banking Sector Accounting - How Far Is Romania from International Referential?," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 3(3), pages 86-100, June.
    4. Singgih Wijayana & Sidney J. Gray, 2019. "Institutional Factors and Earnings Management in the Asia-Pacific: Is IFRS Adoption Making a Difference?," Management International Review, Springer, vol. 59(2), pages 307-334, April.
    5. Salma Damak-Ayadi, 2007. "De L'Efficacite Des Mesures De Convergence Pour Preparer Le Passage Aux Ias/Ifrs En France," Post-Print halshs-00544879, HAL.
    6. Helen Hong Yang & Colin Clark & Changyu Wu & Alan Farley, 2018. "Insights from Accounting Practitioners on China's Convergence with IFRS," Australian Accounting Review, CPA Australia, vol. 28(1), pages 14-27, March.
    7. MARINA Alexandra Gabriela, 2019. "Ifrs For Smes: Cultural Dimensions On Accounting In Central And Eastern Europe Countries," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 71(4), pages 72-85, December.
    8. Masahiro Enomoto, 2018. "Cross-Country Research on Earnings Quality: A Literature Review and Future Opportunities," Discussion Paper Series DP2018-06, Research Institute for Economics & Business Administration, Kobe University, revised Oct 2020.
    9. Baltariu Carmen-Alexandra & Cirstea Andreea, 2012. "European Harmonization Of Consolidated Financial Statements Regulations?," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 860-865, July.
    10. Tyrrall, David & Woodward, David & Rakhimbekova, Almagoul, 2007. "The relevance of International Financial Reporting Standards to a developing country: Evidence from Kazakhstan," The International Journal of Accounting, Elsevier, vol. 42(1), pages 82-110.
    11. Bertrand, Jérémie & de Brebisson, Hélène & Burietz, Aurore, 2021. "Why choosing IFRS? Benefits of voluntary adoption by European private companies," International Review of Law and Economics, Elsevier, vol. 65(C).
    12. Mazboudi, Mohamad & Hasan, Iftekhar, 2018. "Secrecy, information shocks, and corporate investment: Evidence from European Union countries," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 54(C), pages 166-176.
    13. Vassili Joannides & Danture Wickramasinghe & Nicolas Berland, 2012. "Critiques On Gray-Hofstede'S Model: What Impact On Cross-Cultural Accounting Research?," Post-Print hal-00690933, HAL.
    14. Prather-Kinsey, Jenice & Boyar, Scott & Hood, Anthony C., 2018. "Implications for IFRS principles-based and US GAAP rules-based applications: Are accountants’ decisions affected by work location and core self-evaluations?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 32(C), pages 61-69.
    15. Vassili Joannides & Danture Wickramasinghe & Nicolas Berland, 2012. "Critiques on gray-hofstede’s model: what impact on cross-cultural accounting research?," Post-Print hal-01661667, HAL.
    16. Vassili Joannides & Danture Wickramasinghe & Nicolas Berland, 2012. "Critiques on gray-hofstede’s model: what impact on cross-cultural accounting research?," Grenoble Ecole de Management (Post-Print) hal-01661667, HAL.
    17. Feleaga Niculae & Feleaga Liliana & Sandu Raluca & Avram Viorel, 2009. "Quelques Propos Sur La Reforme Comptable. Le Cas De La Roumanie," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 3(1), pages 954-959, May.
    18. Cai, Lei & Rahman, Asheq & Courtenay, Stephen, 2014. "The Effect of IFRS Adoption Conditional Upon the Level of Pre-adoption Divergence," The International Journal of Accounting, Elsevier, vol. 49(2), pages 147-178.
    19. Monir Zaman Mir & Bikram Chatterjee & Abu Shiraz Rahaman, 2009. "Culture and corporate voluntary reporting: A comparative exploration of the chairperson's report in India and New Zealand," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(7), pages 639-667, July.
    20. Tsalavoutas, Ioannis & André, Paul & Evans, Lisa, 2012. "The transition to IFRS and the value relevance of financial statements in Greece," The British Accounting Review, Elsevier, vol. 44(4), pages 262-277.
    21. Nobes, Christopher, 2018. "Lessons from misclassification in international accounting," The British Accounting Review, Elsevier, vol. 50(3), pages 239-254.

    More about this item

    Keywords

    Romanian accounting regulations; IFRS; similarity; convergence; accounting policies;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aud:audfin:v:17:y:2019:i:153:p:114. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dumitru Valentin Florentin (email available below). General contact details of provider: http://revista.cafr.ro/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.