A Story About IAS/IFRS Implementation in Romania: An Institutional and Structuration Theory Perspective

Journal of Accounting in Emerging Economies, Vol. 1, No. 1, pp. 76-100, 2011

25 Pages Posted: 28 Feb 2011 Last revised: 30 Dec 2012

See all articles by Nadia Albu

Nadia Albu

Bucharest Academy of Economic Studies

Catalin Nicolae Albu

Bucharest Academy of Economic Studies

Stefan Bunea

Bucharest Academy of Economic Studies

Daniela Artemisa St. Calu

Bucharest Academy of Economic Studies

Maria Mădălina Gĭrbină

Bucharest Academy of Economic Studies

Date Written: January 16, 2012

Abstract

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.

Keywords: International Accounting, Financial Reporting, Emerging Markets, Romania

JEL Classification: M40, M41

Suggested Citation

Albu, Nadia and Albu, Catalin Nicolae and Bunea, Stefan and Calu, Daniela Artemisa St. and Gĭrbină, Maria Mădălina, A Story About IAS/IFRS Implementation in Romania: An Institutional and Structuration Theory Perspective (January 16, 2012). Journal of Accounting in Emerging Economies, Vol. 1, No. 1, pp. 76-100, 2011 . Available at SSRN: https://ssrn.com/abstract=1770028

Nadia Albu (Contact Author)

Bucharest Academy of Economic Studies ( email )

Piata Romana No. 6
Sect. 1
Bucharest
Romania

Catalin Nicolae Albu

Bucharest Academy of Economic Studies ( email )

Piața Romană 6
Bucharest, 010374
Romania

Stefan Bunea

Bucharest Academy of Economic Studies ( email )

6, Romana Square, District 1
Bucharest, 010374
Romania

Daniela Artemisa St. Calu

Bucharest Academy of Economic Studies ( email )

6, Romana Square, District 1
Bucharest, 010374
Romania

Maria Mădălina Gĭrbină

Bucharest Academy of Economic Studies ( email )

6, Romana Square, District 1
Bucharest, 010374
Romania

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