IFRS ADOPTION IN ROMANIA AND THE IMPACT ON REPORTED DATA

In the world of intensive globalization, the comparability of financial numbers is crucial. The accounting body addressed this need by issuing International Financial Reporting Standards - IFRS. Nowadays, more and more states are adopting these standards. The European Union decided to adopt IFRS, too, starting with the financial year of 2005. Since Romania adhered to the EU in 2007, the state was obliged to transpose international standards in its legislation also. The process of IFRS adoption in Romania is slow, by implementing the practices on a slow pace. The regulations issued by the Ministry of Economics and Finance comprised under its provisions more and more companies. Romanian companies that have securities traded on a stock market are obliged to use IFRS as an accounting base. This paper shows that, given national characteristics, the weak performance of accounting profession, the orientation towards the calculation of taxes, the governance as the main beneficiary of annual accounts, accounting practices under IFRS do not differ substantially from those under national regulations.