FAIR VALUE IMPLICATIONS ON ROMANIAN CAPITAL MARKET

Ciprian-Dan Costea
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Ciprian-Dan Costea: The West University of Timisoara

SEA - Practical Application of Science, 2014, issue 6, 43-48

Abstract: Fair value generated intense debate during the last years, as the financial turmoil influenced many economies and capital markets, including the Romanian ones, too. Some researchers and professionals consider fair value in charge with the financial crisis and they ask for historical cost accounting basis for financial reporting. Fair value has its supporters, too. They consider that fair value reflects the effects of changes in market conditions when they take place, and accounting information is more reliable in this framework. Following recent regulations, Romanian entities activating on capital market as investors in capital market instruments, or whose shares are traded on a regulated market, must prepare their individual financial statements in accordance with the International Financial Reporting Standards. The study provides some conclusions that could enlarge the utility of fair value related to entities that activate on Romanian capital market.

Keywords: Fair value; Historical cost accounting; Fair value accounting; Reported financial information; Capital markets (search for similar items in EconPapers)
JEL-codes: G20 G32 (search for similar items in EconPapers)
Date: 2014
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