SOME INSIGHTS REGARDING CREATIVE ACCOUNTING IN ROMANIAN ACCOUNTING ENVIRONMENT - REGULATORS, FINANCIAL AUDITORS AND PROFESSIONAL BODIES OPINION

This empirical study reports the results of a survey designed to explore the existence and magnitude of creative accounting practices in the Romanian accounting environment using as a reference point the opinion of some of the top representative accounting professionals like: financial auditors, regulators and professional bodies representatives of the Chamber of Financial Auditors of Romania and also representative of the Body of Expert and Licensed Accountants of Romania. \\r\\nSince the existence of creative accounting practices are connected in accounting with issues of vulnerability and in some cases panic getting to know its magnitude can be regarded of higher importance. In this respect we were interested to see if our respondents can document its existence and magnitude based on their experience. In order to achieve this goal our methodology employed neutral and direct interviews based on closed questions questionnaire. \\r\\nThe results of our empirical study documented that the credibility of accounting profession in the Romanian accounting environment is not affected by items like creative accounting since all our respondents asserted that is not facile to employ creative accounting schemes in the practice of accounting. One particular question was concerned about the ease of detection of creative accounting practices. In this respect we interrogated our respondents and all had similar opinions that in order to detect those practice skilled professionals are needed and more than that the desire to engage in this demarche since it is not specified particularly in the law.\\r\\nWhen it comes to creative accounting schemes that our respondents could identify in their day to day work they shared similar views: items like profit overstatement and profit undervaluation, income tax and leasing can be included frequently in those schemes. On the other hand practices of creative accounting that include goodwill, provisions and developments costs are not found in a significant proportion in the Romanian economic environment. \\r\\n \\r\\ncreative accounting, creative accounting practices, credibility, existence, magnitude

THE ROMANIAN ACCOUNTING SYSTEM AND THE ACCOUNTING-TAXATION RATIO

In the context of a developed capital market, the dimensioning of the accounting profit is very important for investors, considering the financing of the economical entities to a higher degree than that offerred by the banking system. The disconnection between accountancy and taxation stands as an essential premise. Considering this, we find three categories of major risks to be significant, together with the expanding tendencies regarding the distortions of the accounting result, which refer especially to the Romanian accounting and taxing system: creative accountancy (a form of disconnection between accountancy and taxation), taxation (a form of connection between accountancy and taxation) and the inflationary phenomenon. Even though the latter is rather low, the particularities of the Romanian economy creates certain conditions for a significant enhancement of the effect of general frugal having important taxing implications on the decapitalization of the economic entities.Accountancy and taxation; The accounting-taxation ratio; Connection/disconnection.

STUDY REGARDING THE INFLUENCE OF ROMANIAN ACCOUNTING REGULATIONS ON CREATIVE ACCOUNTING TECHNIQUES

The main objective of this paper is the analysis of Romanian accounting regulations and the identification of the impact they have on creative accounting techniques. Also, we shall investigate the influence some of these creative accounting techniques have on the true and fair value. Basically, we desire to answer the question: to what extent is being affected the true and fair value reflected within the financial statements of a certain entity by appealing to creative accounting. At international level there are several papers having as subject creative accounting, most of them emphasizing the negative role it has upon achieving the true and fait view. The papers that analyze creative accounting techniques in Romania are rather few, reason to start studying the extent to which Romanian accounting regulations allow the use of creative accounting techniques. We shall use the experience comprised within papers published at international level in order to substantiate an objective analysis of creative accounting techniques in Romania and of the impact they have on true and fait view. Being familiar with the creative accounting techniques is equally useful to the entire palette of accounting information users, including the researchers, for one can quantify the positive or negative impact they have on the true and fair value. One can bring suggestions to modify the accounting regulations, if some creative accounting techniques affect the legitimate interests of certain accounting information users. Also, one can perform analyses regarding the situation of this field in Romania in comparison with the existent situation in other countries. The paper\'s originality is given by the study on the impact of applicable accounting regulations in Romania on creative accounting techniques. There are very few studies in this field in our country and we appreciate that it would be a useful source for the accounting information users. Also, the usefulness of this study is given by the suggestions concerning the instruments to identify the creative accounting techniques that have a negative role on financial statements, so that they would keep their relevance and credibility for the users of accounting information.creative accounting, true and fair value, regulations, corporate governance, financial statements, flexibility

Investor protection and country-level governance: crosscountry empirical panel data evidence

Using a cross-sectional sample of yearly observations covering 132 countries over the 2007–2012 period, this article intends to provide empirical evidence that country-level governance has an impact on the strength of investor protection. Also, when proceeding to a multiple regression analysis based on income classification, as defined by the World Bank, one can observe a different behaviour of the relationship between country-level governance (proxied using the principal component analysis method) and the strength of investor protection

Auditing in the Metaverse, the “New Reality”

The proposed study expresses some considerations about the digital transition in the accounting profession, especially its metaverse aspects. The main reason for this investigation is the importance of the topic in a world that is constantly changing. When reviewing the literature on this topic, the authors found several studies related to the role and importance of metaverse in the accounting profession. In their analysis, the authors conducted a qualitative study that focusses on the role and importance of the metaverse and its scope in the accounting profession. The results of the research show that although the digital transition is not at the beginning of the road, we must adapt to the new changes, so a professional accountant must also have significant knowledge in the field of IT. Following this study, the authors concluded that the role of the digital transition in the accounting profession is essential to face the new demands on the market and to respond in the shortest possible time to the demands of clients

THE EFFICIENCY OF FOREIGN INVESTMENTS IN THE FINANCING OF AUDITED ENTITIES

The auditing of the financial statements is a certification service intended to offer the users more credibility regarding the quality of accounting information. This is the reason why the present study selected all the Cluj county entities that, according to the public information, between 2005-2012 were subject to financial audit in order to estimate, at this level, the influence of foreign investments in the financing structure. The information provided by the financial statements of these audited entities (with or without foreign participation in share capital) was analyzed for the calculation of the relevant indicators to determine the evolution of the equity financing, the recourse to external financing funds, the ratio of external funds and equity funds used for financing and the assessment of the efficiency of foreign capital invested at the level of these entities. In order to meet this objective, we considered the information from the financial statements of the concerned entities, published between 2008-2011. For the relevance of the study, we eliminated the audited entities that did not have financial statements published in all of the four financial years for various reasons (dissolution, liquidation, merger, or temporary suspension of activity) or had negative working capital. The financial statement information was analyzed in view of the calculation for each audited entity of the rate of financial autonomy, the debt ratio, the debt to equity ratio and of the rotation speed of equity. The audited entities were classified into 2 major categories: audited entities with a foreign participation in share capital and audited entities with the whole share capital financed by equity funds. We applied the simple average method at the level of the both audited entities categories for each of the four analyzed indicators. Furthermore, we performed an analysis from the static and dynamic point of view of the results. The conclusions that we reached are relevant for the emphasis of one of the two categories of audited entities for one or the other financing methods, for a specific proportion of the financing forms and for the assessment of the management of shareholders’ capital in the analyzed time span

SOME INSIGHTS REGARDING CREATIVE ACCOUNTING IN ROMANIAN ACCOUNTING ENVIRONMENT - REGULATORS, FINANCIAL AUDITORS AND PROFESSIONAL BODIES OPINION

This empirical study reports the results of a survey designed to explore the existence and magnitude of creative accounting practices in the Romanian accounting environment using as a reference point the opinion of some of the top representative accounting professionals like: financial auditors, regulators and professional bodies representatives of the Chamber of Financial Auditors of Romania and also representative of the Body of Expert and Licensed Accountants of Romania. Since the existence of creative accounting practices are connected in accounting with issues of vulnerability and in some cases panic getting to know its magnitude can be regarded of higher importance. In this respect we were interested to see if our respondents can document its existence and magnitude based on their experience. In order to achieve this goal our methodology employed neutral and direct interviews based on closed questions questionnaire. The results of our empirical study documented that the credibility of accounting profession in the Romanian accounting environment is not affected by items like creative accounting since all our respondents asserted that is not facile to employ creative accounting schemes in the practice of accounting. One particular question was concerned about the ease of detection of creative accounting practices. In this respect we interrogated our respondents and all had similar opinions that in order to detect those practice skilled professionals are needed and more than that the desire to engage in this demarche since it is not specified particularly in the law.When it comes to creative accounting schemes that our respondents could identify in their day to day work they shared similar views: items like profit overstatement and profit undervaluation, income tax and leasing can be included frequently in those schemes. On the other hand practices of creative accounting that include goodwill, provisions and developments costs are not found in a significant proportion in the Romanian economic environment

STUDY REGARDING THE ORGANIZATION OF MANAGEMENT ACCOUNTING IN THE CONTEXT OF RESPONSIBILITY CENTERS

The organization on responsibility centers has lately become a generalized practice inside small and medium economic enterprises. Thus it made necessary the adaptation of management accounting to the new requirements. Introducing effective management by

STUDY REGARDING THE INFLUENCE OF ROMANIAN ACCOUNTING REGULATIONS ON CREATIVE ACCOUNTING TECHNIQUES

The main objective of this paper is the analysis of Romanian accounting regulations and the identification of the impact they have on creative accounting techniques. Also, we shall investigate the influence some of these creative accounting techniques have on the true and fair value. Basically, we desire to answer the question: to what extent is being affected the true and fair value reflected within the financial statements of a certain entity by appealing to creative accounting. At international level there are several papers having as subject creative accounting, most of them emphasizing the negative role it has upon achieving the true and fait view. The papers that analyze creative accounting techniques in Romania are rather few, reason to start studying the extent to which Romanian accounting regulations allow the use of creative accounting techniques. We shall use the experience comprised within papers published at international level in order to substantiate an objective analysis of creative accounting techniques in Romania and of the impact they have on true and fait view. Being familiar with the creative accounting techniques is equally useful to the entire palette of accounting information users, including the researchers, for one can quantify the positive or negative impact they have on the true and fair value. One can bring suggestions to modify the accounting regulations, if some creative accounting techniques affect the legitimate interests of certain accounting information users. Also, one can perform analyses regarding the situation of this field in Romania in comparison with the existent situation in other countries. The paper's originality is given by the study on the impact of applicable accounting regulations in Romania on creative accounting techniques. There are very few studies in this field in our country and we appreciate that it would be a useful source for the accounting information users. Also, the usefulness of this study is given by the suggestions concerning the instruments to identify the creative accounting techniques that have a negative role on financial statements, so that they would keep their relevance and credibility for the users of accounting information

INTENATIONAL RESEARCH REGARDING CREATIVE ACCOUNTING

Although creative accounting practices are not at all recent, only since 2000 this phenomenon has been widely publicized because of the financial scandals that had erupted worldwide. Obviously, creative accounting practices came to be used with nonchalance at enterprise level, irrespective of their size or the industry within which they operate, fact that appears from different studies undertaken globally in recent years.Even though there are many studies based on the creative accounting phenomenon and on other subjects deriving from it, we considered both interesting and necessary an analysis of the articles that tackle different aspects concerning creative accounting, published after 1990 until now within the highest rated journals in the field of accounting. The main objective of this study is to identify the main research areas in order to emphasize the main existent shortcomings and to outline possible solutions concerning future research directions in this field. Of course, from this main objective derive a few sub-objectives which we will try to achieve by means of the quantitative study. The quantitative study is based on the analysis of researches performed in the filed of creative accounting and its aim is to observe their evolution within the concerned period of time, to analyze the main research directions approached, but also to study the predominant research current and the main type of research applied. Moreover, within this stage we have also analyzed the geographical areas on which the studies performed within the selected articles were based. The present study is far from being exhaustive, but it surely represents a starting point and an informative source for future research in the field of creative accounting. We may conclude that most of the researches conducted within the creative accounting field fall within the main research current, which in our case is positivism. Concerning the type of research, we can observe that the vast majority of articles are of empirical nature, but many theoretical studies have also been published