Balance Sheet - Expression of Financial Condition and Communication at International Level

Abstract

The balance sheet represents the main source of economic-financial information, a communication instrument used by economic entities in order to communicate with the outer-sphere, a document that allows us to see the entity's functioning capacity, in a dynamic balanced condition. The balance sheet's international matching process is displayed through a convergence towards international accounting standards, and IAS/IFRS financial reporting issued by IASB. In such optics, the balance sheet conveys a high informational potentiality, the main acquaintanceship of patrimonial reality, with a high communicational opening, but also an important way to notify the shown valuing. A right economic-financial communication, which concedes the credibility of papered data, and yielding the possibility of confronting those, a higher transparency of the balance sheet, next to an archer conciseness of economical strategy, has the role of improving the entity's relations with supply institutions, and to increase its own value. The IAS/IFRS balance sheet can improve the entity's image, and can reproduce the public comprehensible data at international standards.

Keywords: international accounting standards, financial statements, earning quality,economic-financial communication

JEL Classification: M41