Romania. Shifting to IFRS: The case of Romania

Abstract

This paper aims to study the implementation process of the International Financial Reporting Standards (IFRS) in one of ex-communist countries, Romania. This country provides a particular interest for the study because, by its recent history, the national institutional orientation differs to the origins of IFRS. To highlight how Romania has moved to implement the requirement for group and individual listed companies to prepare IFRS accounts, we have organized this as it follows. We begin with an analysis of the relevant literature on the issues that might arise and on the factors which can affect the appropriateness and effectiveness of the implementation of IFRS. Than we analyze the legislation and regulations in Romanian accounting before and after the IFRS adoption. The analysis of the legislative and institutional approach is supported by interviews with Romanian regulators, accountants, auditors and academics.