Nadia Albu

A story about IAS/IFRS implementation in Romania

Purpose – This study aims to investigate in-depth, and explain the issues related to, the implementation of IAS/IFRS in an emergent country that recently adhered to the European Union, i.e. Romania.Design/Methodology/Approach – An institutional and structuration theory perspective is used to discuss two stages of IAS/IFRS implementation in Romania. Both primary (11 in-depth semi-structured interviews conducted with key actors involved in financial reporting) and secondary data (accounting regulations after the fall of communism, with respect to the implementation of IAS/IFRS) were collected for the purpose of the paper.Findings – It was found that the two stages of IAS/IFRS implementation had different outcomes, with a more profound and qualitative impact of the second phase. The first step was a result of coercive external forces, that is, the influence of the World Bank. Given the lack of other factors to favor the change process, it is argued that the actual implementation of IAS in that period was very limited. Even though the second step meant a reduction in scope to only listed companies in consolidated accounts and financial institutions, it is argued that it was accompanied by a change process more significant than in the previous period.Originality/Value – The paper investigates the inter-play between institutions, routines and politics in the Romanian context and highlights the complexity of accounting change in an emerging country.

Accounting competencies and the changing role of accountants in emerging economies: The Case of Romania

Over a recent short period, a number of interventions potentially helped move the Romanian accounting system away from being a tool simply used to support a planned economy. They include harmonization with the European Directives, the introduction of International Financial Reporting Standards (IFRS) and an increased move towards modern information technologies such as Enterprise Resource Planning (ERP) software. In this study, we directly explore these influences by applying job-offer analysis as a reflection of the current and future demand for accounting competencies. We first document current competencies expected from accountants in Romanian businesses and then assess the intervention impact on financial and management accountants. We hypothesize external influences would move Romanian accountants away from the traditional separate specialized positions towards more hybrid accounting positions, such as that adopted in the UK. Whilst our analysis supports a degree of transition with alignment to recent global trends, it also reveals some intransigence in the sense that management and financial accounting positions still tend to retain attributes associated with the two-cycle accounting system. Our findings have implications for harmonization issues and accounting education in Romania.

How to Perform in the Field of Accounting Research? The Case of Romania

Universities, departments and academics are in quest for performance. Measuring performance means establishing and applying a ranking system which is usually finalised with a hierarchy. We endeavoured in this context to a study of the extant situation characterising the performance of the Romania-based accounting academic. Several data sources and the impact of several factors have been examined. We mainly find that performativity, commodification, alienation, and prison are valid metaphors describing the current state of the art of research and publication by Romania-based authors in accounting. A suggestion in line with Marcuse (1969) of ‘not finding happiness in the Establishment’ is made in this paper so as to escape this continual circle of short-termism in scholarly accounting activities in Romania.

The Impact of the Interaction between Context Variables and Enterprise Resource Planning Systems on Organizational Performance: A Case Study from a Transition Economy

The authors investigated how enterprise resource planning systems are implemented and employed in a transition economy. Specifically, a longitudinal case study was conducted to investigate the fit between context variables that is, variables describing the organizational factors and the business environment, and the enterprise resource planning system, and the impact of this fit on organizational performance. It is shown how the case company’s enterprise resource planning system substitutes management techniques, facilitates strategy formulation, and implementation, thus significantly improving organizational performance.

Corporate Governance Disclosures in Romania

There is an increasing literature on corporate governance (hereafter CG) issues in emerging economies, and each study brings a new perspective on this rich unexploited research environment. Because ‘different environments and backgrounds give rise to specific governance needs’ (Peters et al, 2011) the context of each country is unique to some extent and worth investigating. However, important lessons are to be drawn from each case, as other countries might (and usually do) exhibit the same (at least some) common traits.

Accounting academia in emerging economies: evolutions and challenges

Purpose - – This paper aims to investigate the development of accounting academia in an emerging country situated in Central and Eastern Europe. Design/methodology/approach - – First, the authors analyze publications in the main three local Romanian journals dedicated to accounting, using content analysis and statistical tests in line with the issues analyzed for accounting publications in the international literature. Second, they mobilize personal experience of, and observations of local developments by, the authors. Findings - – The authors find that the decision of establishing a national journal ranking system in Romania in 2005 had both positive and negative consequences. Romanian accounting academics were asked after 2005 to focus on a very short notice on writing research papers, following a long period of communism and about 15 years of post-communism during which they wrote textbooks and professional papers. Journal and university rankings therefore influenced the publication behavior of such researchers, leading to searches for efficiency, ease of publications, publications outside accounting as well as to a difficult publication of their research outcome by internationally relevant accounting journals. Research limitations/implications - – Publications in the three Romanian accounting journals for one year were analyzed and the personal experience of the authors mobilized. However, following this study, university administrators and national regulators can better ascertain the effect of their actions, and use these findings to better plan their future actions. Originality/value - – This paper contributes to accounting research literature by offering insights into the current state of accounting research and publication in an emerging economy (Romania), and by investigating the institutional factors that may be responsible for this state of affairs.

Multinationals as Vectors of Corporate Governance Improvement in Emerging Economies in Eastern Europe: A Case Study

Emerging economies are characterized by a reduced level of transparency and accountability of their business environment. Previous research on corporate governance practices in these economies has highlighted the difficulties of implementing corporate governance codes, the reduced level of compliance with these codes and the reluctance of local businesses to change the manner in which they are managed. In this context, multinational corporations (MNCs) are often perceived as “knowledge transfer” agents contributing to the improvement of local practices. However, the transfer is not unilateral, but it should be rather seen as a process of mutual transformation and adaptation. The aim of this chapter is to investigate the role of multinationals in improving corporate governance practices in emerging economies. We conduct a case study on the privatization of Petrom, the largest company listed on the Romanias Bucharest Stock Exchange (BSE). The case suggests that the alignment of Petrom’s practices with the new owner’s (Austrian company OMV) vision and strategy, besides contributing to superior performance and accountability of the company itself, led to a significant improvement of the local corporate governance. This is a story of successful privatization which sheds light on the mechanisms of globalization and on how economic progress is obtained.

The Role and Current Status of IFRS in the Completion of National Accounting Rules – Evidence from Romania

Abstract Romanian accounting rules (RAR) had followed a convergence process with International Accounting Standards/International Financial Reporting Standards (IAS/IFRS) since 1999, and the level of convergence has increased over time. The Romanian accounting regulator continues to follow IAS/IFRS in internalizing the Accounting Directive 2013/34/EU. Only a few major differences still exist (some of them due the restrictions in the Accounting Directive 2013/34/EU) between RAR and IFRS. However, RAR lack the level of detail existing in IFRS, and IFRS cannot be used in practice as a source of guidance and interpretation. While major stakeholders have a positive attitude towards the convergence with IAS/IFRS, the Romanian accounting regulator intends to keep the control over RAR and avoid differences in interpretations that might have tax consequences. Despite the good level of convergence of RAR with IFRS, practitioners tend to continue to utilize the tax approach as a source of guidance and interpretation.

Transparency and Quality of Financial Disclosures : the Case of Romanian Listed Companies

This paper addresses the transparency and the quality of financial disclosures of listed companies in an emerging economy (i.e. Romania), in order to shed some light on the particular local context of the country and on its impact on accounting practices. While emerging economies have attracted a lot of attention from an economic perspective recently, less is known about the accountability processes of the entities in such countries. Emerging economies are characterized as countries having informal institutions, lower enforceability, and lower quality of auditing (Peters et al., 2011). The low regulatory and enforcement pressures would impede the transparency and quality of financial disclosures of entities in such countries; research is therefore needed to understand local practices. On the other hand, there are pressures on emerging-market companies to communicate more transparent and relevant information (Kang, Gray, 2011). For example, norms and regulations have been issued to increase the transparency of companies in order to facilitate the movement of capital within the EU financial market (including the new members which are emerging economies) (Bonsón, Escobar, 2006). Therefore, improvements have been made over the last few years, at least at the regulatory level. There is a growing body of research on emerging economies, but emerging economies do not form a homogeneous group (Chamisa, 2000; Chand, 2005) and findings cannot be generalized. We report in this paper on the case of Romania, a member of the European Union (EU) since 1 January 2007, but which underwent several decades of communism during the second half of the 20th century. In

What Factors Affect the Choice of Accounting as a Career? The Case of Romania

This paper aims to examine the motivations of choosing accounting as a profession in Romania. The paper is motivated by the recent interest at the international level in understanding the trends in the accounting profession. The theoretical tension arises from the Romanian context given the significant challenges for the profession triggered by the transition from communism to a market-based economy. We use a survey-based approach. The sample consists of 112 students undertaking accounting courses both for Bachelor’s Degree or Master Courses at two Romanian universities and 125 professionals belonging to The Body of Expert and Licensed Accountants of Romania. We find that the most important group of factors in choosing the accounting career includes the intellectual motivation, followed by relational and financial incentives. There are a few significant differences between men and women, and between students and professionals. When differences occur, women manifest a lower level of motivation, and professional accountants a higher level of motivation. The results show the driving forces behind the composition of the accounting profession and inform the sociology of the profession, of interest for both academia and practice. Our study contributes to an emerging national and international literature investigating the accounting profession by providing concrete information about the motivations of choosing it in Romania.