FINANCIAL STATEMENTS OF THE AGRICULTURE ENTITIES WITHIN THE CONTEXT OF INTERNATIONAL ACCOUNTING CONVERGENCES

Abstract

The financial statements represent an accounting instrument of great importance within the process of management of the economic entities, being necessary for the substantiation of the decisions regarding the allocation, the use and the recovery of funds, the organization of the control on the accomplishment of the decisions made as well as for the settlement of certain rights and obligations, of certain responsibilities and cointerests born from the activity of administration and development of the patrimony. The financial statements have been drawn up with the beginning of accounting under the form of the balance sheet, ulterior their structure has been developed due to the information needs that grew in time. Due to their possibilities of information, the financial statements represent a very important instrument in the process of substantiating the decisions that the management organs make for the administration of the current activity and especially for the perspective activity, as well as for the realization of the guidance and control regarding the manner of application of the economic and financial regulations. The importance of the financial statements can be synthetically expressed in the following important aspects: - It represents a means of knowledge, control and analysis of the activity of the economic entities by the Council of Administration, the general assembly of the shareholders or of the associates, by the fiscal authorities; the data they contain and which refer to the presentation of the effective indicators regarding the current and precedent financial year, they ensure the analysis of the their evolution from one year to another; the information that they offer stand at the basis of numerous decisions regarding the current activity and especially the perspective one. - It represents a mobilizing factor the improvement of the content and organization of the accounting evidence, which should present the necessary data, exact and in time, for the elaboration of this accounting evidence accordingly and in due time. The financial statements can fulfill the important role that they play in the management process only as far as they meet certain conditions or requirements, among which we mention the most important. The fundamental condition that the financial statements have to meet is mainly represented by the reflection of reality regarding the elements of assets and liabilities existing at the disposal of the economic agent, of the income, of the expenses and of the results obtained. The component parts of the financial statements bare interrelated as they reflect different aspects of the same transactions or of other events. Although each statement gives different information, it is possible that either of them serve one purpose or to offer all the information imposed by the specific necessities of the users. For example, the profit and loss account gives and incomplete image of performance if it is not used together with the balance sheet and the statement of the financial position modifications. The financial statements include also supplementary information, notes, materials that are relevant for the needs of the users; as these refer to the elements in the balance sheet and those in the profit and loss account. There can be also included information regarding the risks and uncertainties that affect the entity, as well as any source and obligations that do not appear in the balance sheet. The information on the geographic and industrial sectors as well as on the modifications of the prices, on the entity could be also presented as supplementary information.