The Use of Professional Judgement in Romania. The Case of Factoring Contracts

Calu, Daniela Artemisa St., Olimid, Lavinia, Guse, Raluca and Viorel, Avram, The Use of Professional Judgement in Romania. The Case of Factoring Contracts, Amis 2010 - Proceedings of the 5th International Conference, Accounting and Management Information Systems Pages: 441-454 Published: 2010

15 Pages Posted: 24 Oct 2016

See all articles by Daniela Artemisa St. Calu

Daniela Artemisa St. Calu

Bucharest Academy of Economic Studies

Lavinia Olimid

Academia de Studii Economice Bucuresti

Raluca Guse

Bucharest Academy of Economic Studies

Avram Viorel

Independent

Date Written: October 13, 2016

Abstract

Switching from an accounting system based on compliance and enforcement of strict rules, to a system where the professional judgement plays a key role in the accounting valuation and recognition of assets and liabilities can be a difficult exercise. After 1989, an accounting reform began in Romania in order to adapt the accounting system at the new economic environment. At that time, the accounting system was characterised by a legal approach for the recognition of assets and liabilities. The nature and extent of disclosures were imposed by the regulator, leaving little freedom for accounting professionals to choose specific forms of presentation.

A few years later (1999), the regulators expanded the field of professional judgement by introducing IASC’s conceptual framework and elements of International Accounting Standards. The aim of this paper is to show that the conceptual elements of IAS/IFRS have influenced only to a small extent the professional judgement of accountants. For this we chose to analyse questions and answers posted on accounting forums regarding the accounting treatment of factoring agreements for which the accounting regulator has not yet issued specific regulations.

Keywords: Professional judgement, accounting regulation, accounting for factoring agreements, recognition of assets, recognition of liabilities

JEL Classification: M41

Suggested Citation

Calu, Daniela Artemisa St. and Olimid, Lavinia and Guse, Raluca and Viorel, Avram, The Use of Professional Judgement in Romania. The Case of Factoring Contracts (October 13, 2016). Calu, Daniela Artemisa St., Olimid, Lavinia, Guse, Raluca and Viorel, Avram, The Use of Professional Judgement in Romania. The Case of Factoring Contracts, Amis 2010 - Proceedings of the 5th International Conference, Accounting and Management Information Systems Pages: 441-454 Published: 2010. Available at SSRN: https://ssrn.com/abstract=2852050

Daniela Artemisa St. Calu (Contact Author)

Bucharest Academy of Economic Studies ( email )

6, Romana Square, District 1
Bucharest, 010374
Romania

Lavinia Olimid

Academia de Studii Economice Bucuresti ( email )

Piata Romana nr. 6, sector 1
Bucuresti, 010374
Romania

Raluca Guse

Bucharest Academy of Economic Studies ( email )

6, Romana Square, District 1
Bucharest, 010374
Romania

Avram Viorel

Independent ( email )

9740 49th Ave NE
Seattle, 98115

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