CONSIDERATIONS REGARDING THE COMPANY RESULTS RESULT OF ACCOUNTING, TAX RESULT AND RESULT SHARE

Pavel Nicoleta
unpublished
The objective of the annual financial reporting is to provide a true and fair view of the financial position, financial performance and other information on the work entities or groups of entities, according to the applicable accounting regulations. Information on financial position are provided, first, balance, those on the outcome, through profit and loss and data on changes in equity are provided in the statement drawn up for this purpose. Notes to the annual financial statements provides
more » ... itional information aimed at facilitating the understanding of the information presented in the balance sheet and profit and loss. The resulting concept of accounting is used more broadly, including both current year result and the outcome of previous years (repoted result). Accounting result (gross result for the year or year result before tax) is calculated based on accrual accounting requirements, respecting the principle of independence that requires delimitation exercise while revenues and expenses. The current result of the exercise can be influenced, on the one hand the accounting rules applied by the entity (accounting regulations on the annual individual and consolidated financial statements, approved by Ministry of Public Finance no. 1802/2014, as amended and supplemented and accounting regulations in accordance with International Financial Reporting standards applicable to companies whose securities are admitted to trading on a regulated market, approved by Ministry of public finance no. 1286 / 2012, as amended and supplemented) and, on the other hand, accounting policies that it applies to accounting regulations allow the choice of accounting treatments. It therefore has the possibility (limited) to influence the size of the profit in the desired direction. One of the components of equity presented separately in the financial statements is retained earnings. Retained earnings are, by nature, the result of previous financial reporting, and result of operations regulated and can be represented by the profit or loss. The notion of retained earnings is included in both the accounting regulations consistent with European directives and in accordance with the accounting regulations of International Financial Reporting Standards, with the same meaning. Due to developments in the normalization process accounting and convergence between accounting regulations consistent with European directives and comply with International Financial Reporting Standards, and the complexity of the operations they perform entities, retained earnings has become a comprehensive, extremely important for users of financial information. In some cases, an entity shall reflect income and expenses that are attributable to earlier periods is due to the detection of errors, either due to change in accounting policies. Switching to the application of IFRS by certain entities had the effect of introducing the accounting regulations of explicit requirements concerning the presentation of detailed information on earnings. Regarding fiscal result, it takes into account the taxable profits of the period and other taxable items from a tax perspective. Tax result is determined according to Law no. 227/2015 regarding the Fiscal Code, as amended and supplemented. Distributable result is not reflected in the financial statements, this information is available, as proposed in the note accompanying the annual financial statements. The outcome may be materially different from distributable result sheet (current and deferred) presented in the financial statements. A study conducted on a total of 10 listed companies revealed accounting policies impact on earnings, the current earnings and profits distributed to shareholders. As a conclusion, we can say that the accounting policies adopted by the entity under the applicable regulatory framework can influence the size of the result (current and deferred).
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