IFRS adoption in developing countries: the case of Romania
Vol. 13, Nr. 2/2014 , p311..350
Author(s):
Mihaela IONAŞCU
Ion IONAŞCU
Marian SĂCĂRIN
Mihaela MINU
Keywords:
IFRS, Romania, developing countries, cost and benefits, level of compliance
Abstract:
The purpose of the paper is to discuss theintroduction of IFRSs within the social history of the modernization of Romanianeconomy and society, and to investigate the extent to which thepotential benefits expected from their adoption are starting materialize. Basedon an extensive literature review, we find that, at this stage, the stream ofresearch investigating the impact of IFRS adoption in Romania is in itsincipient stage, mainly consisting of studies of perception (of preparers,regulators, auditors and users), rather than studies focusing on providingempirical evidence on the actual consequences of IFRS implementation. However,results obtained so far show that the Romanian economic environment is to acertain degree open to IFRS and optimistic about their potential, althoughthere are compliance issues and institutional factors that can diminish theirbenefits. There are also preliminary empirical results documenting an increasein transparency and in value relevance of financial information and a decreasein the cost of capital.
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http://online-cig.ase.ro/jcig/art/13_2_6.pdf
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