APPLICATION OF THE CONTINUITY PRINCIPLE IN THE SITUATION OF REORGANIZATION OF ACTIVITY FOR COMPANIES IN INSOLVENCY

Ancuța-Anisia Chelba () and Veronica Grosu ()
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Ancuța-Anisia Chelba: Stefan cel Mare University of Suceava, 720229, Romania
Veronica Grosu: Stefan cel Mare University of Suceava, 720229, Romania

European Journal of Accounting, Finance & Business, 2021, vol. 17, issue 27, 34-40

Abstract: In an extremely dynamic economic environment marked by uncertainties, any company in financial difficulty or in a state of insolvency must have correct and current information at hand about the possibility of reorganizing the activity, as a fundamental landmark in the natural opportunity to continue business in the economic environment. Also, stakelorders constantly need real and concrete information about their business partners in order to make quick and intelligent decisions regarding the collaboration they carry out with them. In this context, we can say that the insolvency situation reflects the health of the business environment in which the actors manage business relationships and more. From this point of view, the main objective of this article is to provide information support to companies tried especially in this pandemic period by highlighting the possibility of applying the principle of business continuity even in situations of financial crisis. For this purpose, the article delimited the concept of continuity of the company's activity in insolvency proceedings, presented and explained the compensation agreement with creditors in insolvency, and finally highlighted the usefulness of financial-accounting rates in risk prevention of insolvency.

Date: 2021
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