DRAWING UP THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS THAT DO NOT BRING A PLUS OF UTILITY

Paliu – Popa Lucia and Cosneanu Lavinia
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Paliu – Popa Lucia: Constantin Brancusi University of Targu Jiu, Romania
Cosneanu Lavinia: Constantin Brancusi University of Targu Jiu, Romania
Authors registered in the RePEc Author Service: Lucia Popa Paliu

Annals - Economy Series, 2019, vol. 3, 37-43

Abstract: The objective of the consolidated annual financial statements is to provide a true and fair view of the financial position, financial performance and other information about the group's activity, in accordance with the applicable accounting regulations. From this perspective, and taking into account that the responsibility for the elaboration and fair presentation of the financial statements in accordance with theoverall applicable financial reporting framework lies with the management of the entity, supervised by those charged with governance, we find it useful to carry out a study aiming the exception from the compulsoriness to draw up the consolidated financial statements in the context that they will not bring additional benefit for the users in relation to the individual financial statements and the cost/ benefit ratio is unfavorable to the reporting entity. In this respect, we will perform a comparative analysis of the exception from the compulsoriness to draw up the consolidated financial statements at both national and international level and address issues related to the exception to the compulsoriness to draw up the consolidated financial statements that are not going to bring additional benefit for the users, and the cost-benefit ratio is unfavorable to the reporting entity. This study will be conducted from the perspective of the main differences between the provisions of the national accounting regulations (represented by the Order of the Minister of Public Finance no. 1802/2014 for the approval of the Accounting Regulations on the individual annual financial statements and the consolidated annual financial statements as part of our approach) and those of the international reference system.

Keywords: consolidated financial statements; subsidiaries; relevance; utility; cost-benefit ratio (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:cbu:jrnlec:y:2019:v:3:p:37-43

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