The nature and diversity of governmental activities

In this article, I discuss the Governmental Accounting Standards Board (GASB), which establishes accounting standards for state and local governmental units and which is a sister organization of the Financial Accounting Standards Board (FASB). I also discuss the nature and diversity of governmental activities, the objectives of governmental financial reporting, the two different kinds of flow statements that are used to present operating statements for governmental activities, and other reporting.governmental activity, governmental accounting standards boards, financial reporting

CONVERGENCES AND CONTROVERSY ON THE FINANCIAL STATEMENTS

The standardization issue starts with the accounting theories and the interface between them and accounting practices. The plural of accounting theories is explained by the fact that literature defines several theories, which differ both in their content and their origin and genesis . Although it seems an extravagant expression, the notion of accounting theory underlying the accounting literature, particularly the Anglo-Saxon one and less the Continental one, is true. The accounting theory is described by J. F. Imke as an organized group of knowledge, characterized by order, motivations, connections, objectives and methods used in accounting. A classification of accounting theories addresses the following classes: descriptive theories, regulatory theories and explanatory theories.financial statements, harmonization, convergences

THE FINANCIAL ACCOUNTING INFORMATION SYSTEM CENTRAL BASE IN THE MANAGERIAL ACTIVITY OF AN ORGANIZATION

In the information system the development of processes is ensured by a component of the organizational structure in which specialists, scientific instruments, accounting technique and an information flow between information sources, system’s components and decision levels are involved. From the functional point of view, the information systems within an organization can be classified into: • Information system for production; • Information system for the commercial activity; • Financial accounting information system; • Information system for the human resources management. The financial accounting information system provides managers the financial accounting information on which policy formulation is based on, the development of business plans and the control of activities within the organization and has the purpose of answering legal external requirements and accounting standards. To satisfy the necessary conditions in order to benefit from a reliable financial accounting information system, the conditions that ensure the equity and viability of information must be observed (reality, versatility, concision, synthesis ability, opportunity, operability, precision and safety, efficiency, security, etc.) and eliminates the major deficiencies of the system in exploitation (distortion, filtering and redundancy of the information).decisional process, information system, financial accounting information system, informative system, managerial activity

EUROPEAN AND INTERNATIONAL APPROACH ON THE ACCOUNTING FOR INTANGIBLE ASSETS

The development of the competitiveness hasn’t been a priority for Romanian companies until the moment of the economical crisis. The difference can be seen in quality, services, innovation, image, knowledge, the approach to information, culture, etc. The companies that manage to differentiate from the others will resist in time and the economic advantage is made through intangible assets. The assessment of the intangible assets is the real description of the company wealth which is very well known to all balance sheet users, because it contains their fair value.intangible assets, assessment, reassessment, recognition, fair value

PASSING FROM ACCOUNTING TO FISCAL DEPRECIATION

The perception and calculation of depreciation is an issue with taximplications. The terms under which such issue is settled are reflected in the ordinary usedurations, in the depreciation regimes opposable to economic agents, implicitly in the deductibilitydegree of depreciation in establishing the taxable income and the value considered upondepreciation calculation. From the fiscal viewpoint, decentralization in establishing the use duration imposes auauthorized control that should moderate the company policy in establishing reduced use durations,and, implicitly, reduced durations of asset depreciation. The durations applied by companies must befiscally approved. The depreciation durations approved by the tax authorities are in most cases fiscaldurations, which differ from accounting durations.depreciation, depreciation regime, ordinary use durations

INTERNAL AUDIT REGULATIONS IN ROMANIA AND THEIR CONVERGENCE TO EUROPEAN EXIGENCIES

The aim of our approach is to clarify the role and position of the internal audit in thefunctioning of the organizational systems within the present social and economic context.On the one hand, the research had in view a systematization and reassessment, and, on the otherhand, a synthesis and analysis of the opinions found in the specialty literature about the abovementioned subject and the regulations established by the various professional organizations andnational and international authorities existing in the field of research.The internal audit is a dynamic process that should evolve together with the society and should bestrongly connected with its economic stage.internal audit, corporative governance, management-audit relation.

OPENING OF FINANCIAL STATEMENTS TOWARDS PROVISIONAL INFORMATION

The relevance of accounting information in making effective decisions cannot be reduced only to the retrodiction function. It should help users to evaluate past, present and future events. In this respect, there can be accepted the predictive function of accounting information in forecasting the financial position and performance, and the treasury of the company. To have predictive value, such information must be in the form of explicit forecasts through the provisional accounts as constructed in the present study.forecast, treasury, payments, asset, expenses, income, equity, liabilities

THE IMPORTANCE OF THE FINANCIAL AUDIT IN PREVENTING ACCOUNTING ERRORS AND FRAUD

In the audit of financial statements, the main objective of the auditor is to express an opinion on the accuracy of the reported information, in all significant aspects, in relation to the applicable accounting framework. Although international auditing standards state that auditors are not required to detect financial fraud in audited companies, they must ensure during their engagement that the risk of fraud will not affect the audit opinion. To detect the risk of fraud and reports of accounting manipulation, auditors can use several signal indicators. Practice and literature support that the use of indices to detect accounting manipulation can be achieved through various linear scoring functions including the Beneish Model (1999). In Romania, the problem of assessing the risk of audit fraud has not been adequately addressed, until now. The purpose of this scientific approach is to prevent, analyze and evaluate the risk of fraud, based on the estimated score function and the defined classification interval

CONTROVERSY REGARDING ITEMS EVALUATED IN FINANCIAL STATEMENTS

The study follows the evaluation process of patrimony through different accounting referential. It was analyzed the basis for evaluation provided, how credible and believable are to the extent of their advantages and limitations. The differences highlighted here come to support today’s concerns of accounting organisms in setting and developing elements and content for a Conceptual common framework

THE ACCOUNTING TREATMENT OF ASSET DEPRECIATION AND THE IMPACT ON RESULT

The users of the financial statements have long been limited to perusing the loss and profit account to find out information about the accounting result. It has been considered the most significant indicator to measure the performance of a company, without taking into account, however, the relevance of such information. The accounting result is the result of the free choice on accounting policies of companies and leads to an increase or decrease of this result. It is difficult to select the most relevant policy of the multiple accounting policies provided by the International Financial Reporting Standards with impact on a company’s financial performance. Such various accounting practices make an accurate evaluation of the performance and financial situation of companies of different nationalities difficult. It is certain, though, that different accounting solutions used for re-evaluations, amortizations and adjustments lead to different financial results for identical exploitation conditions