The Quality Characteristics of the Financial Information Between Requirement and Utility

Ana Morariu (), Mihaela Daucianu (Avram) (), Grazia Oana Petroianu () and Ion Dulugeac ()
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Ana Morariu: The Bucharest University of Economic Studies
Mihaela Daucianu (Avram): The Bucharest University of Economic Studies
Grazia Oana Petroianu: The Doctoral School of the Bucharest University of Economic Studies
Ion Dulugeac: The Equestrian Academy Mogosoaia

A chapter in Innovation, Finance, and the Economy, 2015, pp 105-119 from Springer

Abstract: Abstract The objective of this article is to analyze the evolution of the quality criteria of financial information required nowadays by IFAC, the world’s largest professional body for effective decisions taken by owners, managers, employees of the entity. Fundamental characteristics are given by relevance and faithful representation. The second category considers verifiability, opportunity, comparability and intelligibility of information. In Romania, by comparing the quality characteristics of the information provided by financial reporting required by the IASB conceptual framework and by national regulations, there is a substantive difference. The relevance of the financial information must express the predictive and confirmatory value so that investors and creditors decisions should be based on the weather in order to help users confirm or adjust previous forecasts. The predictive and confirmatory (feedback) are attributes relevance of financial information. Romania fragmented applies them by Order 3055/2009 [Order no. 3055/2009 for the Approval of the Accounting Regulations in conformity with the European Directives.], without focusing on the relevance and role of undisputed projections based on historical financial information. Given the current state of development of accounting normalization, the ideal is to create a single standard, unitary standard that does not allow exceptions, conditions, exceptions or options.

Keywords: Accounting normalization; Fundamental qualitative characteristics; Border of significance; Users of financial statements (search for similar items in EconPapers)
Date: 2015
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DOI: 10.1007/978-3-319-15880-8_9

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