Journal of Accounting and Management Information Systems (JAMIS)

The application of international accounting regulations by the Timiş county’s enterprises that wanted to be listed on the capital markets

16/2006 ,   p50..63

Nicoleta FARCANE
Leonora CACIUC
Ovidiu MEGAN

Keywords:   globalization, accounting practice, international accounting standards, capital markets

The Globalization is a worldwide phenomenon active even in accounting and decision makers area. The extension and multiplication of international economic relationships, within the wares and capital markets which are developing in a rapid rhythm, over the national borders, requires the accounting systems to ensure through the financial statements (balance sheet, income statement, cash-flow statement) comparability of the information between states.
As investment capital has shown increasing disregard for national boundaries, the flow of information on financial markets has become both more complex and more problematic. At the same time, the speed with which markets now respond to events and financial conditions in all parts of the world makes accurate, up-to-the-moment information a crucial element in the investment and accounting picture.
The trend of the Romanian social, political and economical environment make us think that the future of the Romanian accounting will drive us to the accounting standards that the European Union had accepted (EU Accounting Directives and IFRS). The Romanian perspective of joining the European Union and the extension of globalization will determine the development of the capital markets in our country.
The objective of our study is to analyze the extent to which Timiş county’s enterprises are prepared, for the international accounting practice, if they want to be listed on the national or even on the European capital markets. In this case they have to know and apply international accounting regulations and to support all the expenses of this transition process.
Management needs to be prepared now. It is important to understand that European Accounting Directives will bring change to every organisation that adopts it both internal change and change to how the organization is perceived by investors and markets.We appreciate that this change will represent for Timiş County companies an opportunity, and also alert managements will recognise that preparedness is the key.We consider that this survey study is a very useful tool to bring up the difficulties of International Accounting Regulations application in Romania, which can be solved by the concerted effort of academic area (Economic Universities) and professional area (CECCAR and CA).