Title: Accounting reasoning evolution: a case study of Romania

Authors: Adela Deaconu; Anu?a Buiga

Addresses: Department of Accounting and Audit, Faculty of Economics and Business Administration, Babes-Bolyai University Cluj-Napoca, 58-60 Th. Mihali Street, Cluj-Napoca, 400591, Romania. ' Department of Statistics – Prognosis – Mathematics, Faculty of Economics and Business Administration, Babes-Bolyai University Cluj-Napoca, 58-60 Th. Mihali Street, Cluj-Napoca, 400591, Romania

Abstract: This research empirically investigates the extent to which accounting principles and judgments were applied by accounting professionals in Romania, while identifying the current practice. The findings show that accounting professional reasoning is positively associated with the development degree of the economy, having in mind the case of an emergent country with a history characterised by centralisation and inhibition of professional reasoning. Compared to accounting regulations - which in Romania are a mix of rules and principles complying with the International Financial Reporting Standards - the research reveals a lower level of accounting judgments applied in practice. One conclusion is that in Romania, and maybe at the European scale, institutional changes that affect the professional expertise are required. The selection of accounting regulations should be made with caution as they should correspond and/or be adapted to national values, companies' behaviour and individual expertise and beliefs, even if the process would be delayed in time.

Keywords: accounting reasoning; emerging economies; rules based systems; principles based systems; International Financial Reporting Standards; IFRS; Romania; accounting professionals; accounting regulations.

DOI: 10.1504/IJAF.2012.048504

International Journal of Accounting and Finance, 2012 Vol.3 No.3, pp.237 - 272

Accepted: 18 May 2012
Published online: 12 Aug 2012 *

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