Last modified: 2020-05-08
Abstract
An IFRS-based accounting should provide many benefits, both in presenting and reporting financial information, as well as in the decision-making processes, giving companies the opportunity to use the global financial markets to boost capital.
Along these lines, the objective of our research was to identify the level of awareness among the Romanian companies’ managers as a result of applying international financial reporting standards.
We’ve conclude that most respondents are aware of the advantages that entities should get when applying IAS/IFRS. Therefore, 96% of the interviewed managers acknowledge that the main benefit granted by the application of IFRS consist in increasing the level of transparency and comparability of financial information on one hand, and, on the other hand, in expanding the role of accounting in the decision-making process. Such benefits should lead to the growth of confidence of international investors in the Romanian entities and afterwards improve the investment process in the national companies, a gain that, at the moment, the Romanian companies seems to not get yet.