CORRECTING ACCOUNTING ERRORS AND ACKNOWLEDGING THEM IN THE EARNINGS TO THE PERIOD

BUSUIOCEANU STELIANA Author-Workplace-Name: Transilvania University of Brasov, Faculty of Economic Sciences and Business Administration

Annals - Economy Series, 2013, vol. 5, 18-23

Abstract: The accounting information is reliable when it does not contain significant errors, is not biased and accurately represents the transactions and events. In the light of the regulations complying with European directives, the information is significant if its omission or wrong presentation may influence the decisions users make based on annual financial statements. Given that the professional practice sees errors in registering or interpreting information, as well as omissions and wrong calculations, the Romanian accounting regulations stipulate treatments for correcting errors in compliance with international references. Thus, the correction of the errors corresponding to the current period is accomplished based on the retained earnings in the case of significant errors or on the current earnings when the errors are insignificant. The different situations in the professional practice triggered by errors require both knowledge of regulations and professional rationale to be addressed.

Keywords: IAS8; accounting errors; retained earnings; financial statements; accounting policies Journal: Constatin Brancusi University of Targu Jiu Annals - Economy Series (search for similar items in EconPapers)
Date: 2013
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