IMPACT OF THE TRANSITION TO IFRS FOR THE ROMANIAN LISTED COMPANIES IN FINANCIAL DISTRESS

Costel Istrate, Ioan Bogdan Robu () and Mihai Carp ()
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Ioan Bogdan Robu: Alexandru Ioan Cuza University, 11 Carol I Blvd, Iasi, Romania
Mihai Carp: Alexandru Ioan Cuza University, 11 Carol I Blvd, Iasi, Romania

Review of Economic and Business Studies, 2015, issue 15, 83-102

Abstract: The transition to IFRS of the Romanian listed companies enables us to provide a comparison of some accounting data reported in the same period and that have been obtained according to different accounting regulations: RAS vs. IFRS. The aim of our paper is to establish if the listed companies in financial distress report a trend of changes due to the transition to IFRS that is different to the one established for the performant companies. Based on the data corresponding to the 2011 financial year (with available RAS and IFRS information), we have calculated Gray’s comparability index (for a series of financial indicators) in the case of the two groups of companies (one in financial distress and a performant one) and we have statistically tested the existence of significant differences between the values of the index for the two company categories. We have found out that some indicators evolve in the same manner (especially the balance sheet structure indexes), others maintain the same trend, but the significance of the variances are different (ROS, ROA, ROE and OI), and, finally, for another series of indicators, the trend of the change caused by the IFRS transition is different for the two groups of companies (leverage and equity).

Keywords: Impact of IFRS; Gray index of comparability; Romanian listed companies; companies in financial distress (search for similar items in EconPapers)
JEL-codes: C51 C58 G33 M41 M42 (search for similar items in EconPapers)
Date: 2015
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