Requirements for Reaching Accounting Harmonization

Ionela Poida (Ivan), Mihaela-Nicoleta Băcanu
2018 Journal of Accounting and Auditing Research & Practice  
Introduction and Literature Review Generally, the application of IAS/IFRS is a very complex process that can be due to the mandatory accounting regulations, the management's initiative, the request of the shareholders or the need to have comparative information. Accounting harmonization is tightly connected to the international accounting standardization and standards can be written in clear language and have the required documentation for the implementation with proper training. Abstract
more » ... ping international trade relations leads to the idea that an implementation of a unitary and uniform legislation according to the requirements and provisions of International Accounting Standards and European Directives is mandatory so defining accounting harmonization is very important. The assessment of the company's implementation capacity is the basic principle to be followed before pursuing harmonization. By applying the legal regulations the companies provide financial information which must be accurate. In order to have a certain degree of confidence in the produced information, it must be easily verifiable in terms of accuracy. Therefore, in order to support the accuracy and precision used in the context of measurement it is important to have supporting documents that are sufficient and appropriate. The main purpose of the performed work is to analyse the degree with which the accounting harmonization will enhance the credibility of the financial statements and add value to the company's business operations. In order to do this, we have performed a qualitative research study by analyzing the responses of a group of 20 professionals-10 auditors and 10 accountants, given in the distributed questionnaires during March-May 2017 within four companies, located in Bucharest. The results proved that the harmonization process is useful and brings multiple benefits to the professional's day-to-day activities and that they play a very significant role in the process of harmonization by actively presenting various comparative analysis.
doi:10.5171/2018.150871 fatcat:jmgvvecaxnekror266lqr52lxy