IMPACT OF GLOBALIZATION ON FINANCIAL REPORTING

Abstract

The future of financial globalisation is one of the biggest questions of our times. How the companies from Romania will align to IFRS requirements and what involves the normalization process in terms of business is an opened subject nowadays. The purpose of this article is to draw into attention the differences on financial terms and the impact of alignment of the current romanian regulations stipulated by OMF 3055/2009 to IFRS. The impact will refer to how will be influenced the decisions of the users of financial information if different regulation apply. In order to quantify the impact of the differences between the accounting treatments, I have made an analysis on Balance Sheet and Profit and Loss statements of the company Alfa. I have presented only the results after mapping the accounts in the Balance Sheet and Profit and Loss forms and interpreted how the decisions of the users of financial information are influenced in both cases. After the analysis performed I have concluded that the decisions of investors, banks and other users of financial statements change due to different results obtained by using the mentioned frameworks. Different approaches conclude to different results, so the purpose of normalization is that the user, wherever he is, takes the same decision based on figures which reflect a fair view of reality.