Journal of Accounting and Management Information Systems (JAMIS)


Study on the difficulties of applying IAS 7 in Romania

5/2003 ,   p73..87

Author(s):  
Mihaela MUNTEAN


Keywords:   cash flow statement, treasury accounts, temporary accounts, algebraic approach to the indirect method

Abstract:  
This article investigates the difficulties that Romanian companies face when applying IAS 7 “Cash flow statement”, which are merely linked to the compulsory use of a national chart of accounts which standardizes the accounting practices at national level. After exposing a number of problems and offering possible solutions, the article concludes that such difficulties may paradoxically have a positive effect on the Romanian accounting profession, as they may force accountants to extend the use of their professional judgment and gain independence from the uniformity imposed by the national regulating authorities.


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