Changes In Financial Position Research Articles

The Effect of Good Corporate Governance on Profit Management (Case Study: Transportation Companies Listed on the IDX)

Financial statements have the objective of presenting information related to financial condition and position, performance and changes in financial position that provide benefits to a large number of users of financial information, particularly profits that have been obtained. Finance is information that shows the company's achievement in generating profits. Earnings information is a part / component of the company's financial statements that aims to inform management performance, helping to estimate representative earnings capacity in the long term. This study aims to determine the effect of Independent Commissioners, Audit Committee, Institutional Ownership, Auditor Quality and Profitability on earnings management in transportation companies listed on the Indonesia Stock Exchange. This type of research is a causal quantitative research located on the Indonesia Stock Exchange (IDX) which is accessed through www.idx.co.id with a sample size of 5 companies during the 2015-2019 period using panel data linear regression analysis. The results showed that through the Chow and Hausman tests the fixed effects model (FEM) was used. The results of the t test show that partially the Independent Commissioner, Audit Committee, Institutional Ownership, Auditor Quality have an effect on Earning Management. Simultaneously the Independent Commissioner, Audit Committee, Institutional Ownership, Auditor Quality have an effect on Earnings Management.
 
 

Penerapan Sistem Informasi Akuntansi Berbasis Accurate Terhadap Penyusuanan Laporan Keuangan

Small and Medium Enterprises have increased, but few MSMEs have implemented accounting systems. Accounting Information System is increasingly increasing in the field of accounting certainly makes it easier for companies to produce financial reports in addition to facilitate the recording and can find out the company's financial condition. Financial statements that contain financial statements, company performance, and changes in financial position, inventory, and profits obtained which can help the company's internal parties in making decisions.
 Almuhajir Tugujaya Convection is a manufacturing company where the company produces clothing and shoes. The recording applied by the Almuhajir Tugujaya Convection is still done manually with the excel program, and only records cash receipts and disbursements, so that the owner does not know for sure the inventory, profits and losses obtained. Manual recording results in recording errors and the risk of data loss. The method used by the author in this study is qualitative with the type of case study. The data obtained is processed and then implemented into Accurate 4.0 Software. From this study, it can be concluded that the application of Accurate Software in the Almuhajir Tugujaya Convection can produce Financial Statements in accordance with current standards, and company profits or losses.
 Research results, after using Accurate at Almuhajir Tugujaya Convection, computerized sales and purchases transactions make it easy to input transactions. Making different formulas for each production can make it easier to find out the inventory stock, and know the production costs of each product. The resulting financial statements are precise and accurate in accordance with current standards, and can help internal parties know the company's condition in making decisions. The risk of data loss and errors in recording can be prevented.
 
 Keywords:Financial Statement, Manufacture, Software Accurate Enterprise 4.0

'I can't go, I can't afford it': Financial concern amongst health students undertaking rural and remote placements during COVID-19.

IntroductionAs the coronavirus pandemic unfolded during 2020, widespread financial uncertainty emerged amongst university students across the globe. What is not yet clear is how Australian health students were financially impacted during the initial stages of the pandemic and whether this influenced their ability to undertake planned rural or remote placements.ObjectiveTo examine (a) financial concern amongst health students during COVID‐19, (b) the financial implications of changes to planned rural or remote placements and (c) the impact of these factors on students' ability to undertake placements during the pandemic.DesignMixed‐methods design involving an online survey (n = 1210) and semi‐structured interviews (n = 29). Nursing, medical and allied health students with a planned University Department of Rural Health‐facilitated rural or remote placement between February and October 2020 were invited to participate.Findings54.6% of surveyed students reported financial concern during COVID‐19. Financial concern correlated with both changes in financial position and employment, with 36.6% of students reporting a reduction in income and 43.1% of students reporting a reduction in, or cessation of regular employment. Placement changes yielded a range of financial implications. Cancelled placements saved some students travel and accommodation costs, but left others out of pocket if these expenses were prepaid. Placements that went ahead often incurred increased accommodation costs due to limited availability. Financial concern and/or financial implications of placement changes ultimately prevented some students from undertaking their rural or remote placement as planned.DiscussionMany nursing, allied health and medical students expressed financial concern during COVID‐19, associated with a loss of regular employment and income. Placement changes also presented unforeseen financial burden for students. These factors ultimately prevented some students from undertaking their planned rural or remote placement.ConclusionUniversities need to consider how best to align financially burdensome placements with the personal circumstances of students during periods of economic uncertainty.

DETERMINASI MANAJEMEN LABA PADA PERUSAHAAN DI BURSA EFEK INDONESIA

Financial statements are a source of information regarding the condition and performance of a company for external parties. Such information concerns the financial position, performance and changes in financial position of an enterprise, and is useful to a wide range of users in making economic decisions. One of the important elements in the financial statements used to measure management performance is profit. This study aims to determine the effect of dividend policy, leverage, firm size and free cash flow on earnings management. This type of research is causal associative. The research population is 40 Blue Chips companies listed on the Indonesia Stock Exchange in 2016-2020. The sampling method is purposive sampling, so the number of samples used is 200 observation data. Hypothesis testing is done by using multiple linear regression analysis. The results showed that dividend policy and free cash flow had a significant positive effect on earnings management, while leverage and firm size had no significant positive effect on earnings management. This is because earnings management is a management decision-making process in choosing accounting policies that will be used to achieve the desired goals, by increasing the earnings value of discretionary accruals.

Comparison of the Accuracy of Direct and Indirect Methods of Cash Flow Models in Predicting Future Profits

Financial reports are part of the financial reporting process. Complete financial statements usually include balance sheets, income statements, statements of changes in financial position (which can be presented in various ways, for example, as cash flow statements, or cash flow statements), notes and other reports and explanatory material that are an integral part of the financial statements. . The purpose of this study is to provide empirical evidence whether a model with a direct cash flow component has a more accurate predictive ability than a model with an indirect cash flow component to predict future earnings. The parameters of this research model were estimated using panel data regression. This study considers 4 regression methods of penel data, namely (1) linear regression model (OLS), (2) covariance model (FEM), (3) error components (ECM) model, (4) time series autocorrelation model (GLS) ( Thiono, 2007). The results of the analysis of this study are the direct method cash flow component is more accurate than the indirect method cash flow component in predicting future earnings in manufacturing companies, finding that the direct method component is more accurate than the indirect method. Then for the cash flow component model the direct method is more accurate than the model with the indirect method cash flow component in predicting future earnings in non-manufacturing companies, finding that the cash flow components of the direct method and the indirect method do not differ in their accuracy in predicting future earnings.

ANALISIS LAPORAN KEUANGAN BANK SYARI’AH TERHADAP KEPUTUSAN NASABAH MEMILIH BANK

Financial statements describe the financial condition and results of operations of a company or institution at a certain time or for a certain period of time. The types of financial statements commonly known are: balance sheet or income statement, or business results, cash flow statement, statement of changes in financial position. There are many errors and a lack of media information for analysts on financial reports so that financial reporting data can be manipulated and harm customers or consumers. This type of research is field research using a quantitative descriptive approach. From the research results, it can be seen that the consumer's decision to choose a bank in the high category is 3 people (11.11%) with a value of 52.12 and above. The sample that got the moderate category was 18 people (66.67%), namely the value ranged from 48.1 to 52.12 and the sample that got the low category was 6 people (22.22%), namely a value of 48.1 and below. So thus it can be concluded that the consumer's decision to choose a bank seen from its financial statements can be categorized as moderate.

PERANAN SOFTWARE ACCURATE DALAM MENUNJANG SISTEM INFORMASI AKUNTANSI (Studi Kasus pada CV. Nuansa Elektronik)

Along with the development of the age, economy in each country will experience growth. Evenntually, the development will take effect on the behavior and customs of the community of a country.Result generated by the end of the accounting information are the financial reports. Financial information of course is very important for the progress of a company. In order to provide a strategic competitive advantage for the company then a system that sets the accounting information is neededThe purpose of financial statement is to provide the information that connected with financial position, working method and changes in financial position of a company which useful for must user on making economic decision. The financial statement that sets for this purpose is expected can fulfill most of the user need. The financial statement is useful for most user when the information of financial statement can be understood, relevance, reliable and can be compared. However, the financial statement not supplied all information that users need in making economic decision. Generally, financial statement described financial effect of the past, and not requires providing non-financial information. This research examined about utilization of Accurate Accounting Programme, presentation of financial statement, and the function of Accurate Accounting Programme to increase presentation effectivity of financial statement at CV Nuansa Electronic. The purpose of this research is to know how about effects the function of Accurate Accounting Programme to increase presentation effectivity of financial statement. In business field, the use of personal computer has been an absolute needed, like a data entry, inventory, selling, human resources department, production process, and other office administration, also for correspondence only. The popular programmed such as WordStar, Lotus, and Dbase are used for that activity. Although that programmed give such big help, but there still have some problems and only can be used for some tasks. Although it can be used, the procedure is too complicated and data processing takes more time. Even though, financial statement has to prepared fast, correctly and accurately as information for management to take the right decision in financial. To handle the problems, CV Nuansa Electronic decided to use Accurate Accounting Program. The process of this program is very easy and quick in accordance with excel programme. Keywords : Software Accurate, System Information Accounting

Problems in Making International Financial Reporting Standards Become "National": The Case of Turkey

1.IntroductionInternational Financial Reporting (IFRS) have been increasingly under focus of accounting professionals and legislators around world in last two decades. In Turkey, has been used in financial reporting by a limited number of companies for this period. The scope of mandatory application of was for public companies and financial institutions only. During this time, voluntary applications comprised mostly financial reports of local branches of international corporations. Other two groups that could be named as IFRS followers in Turkey were professionals worked for international big auditing firms and academics worked in higher education institutions.After several attempts, a full set official translation of has been published by a semi-autonomous professional agency in 2002. Although this set of rules is exact, word by word translation of IFRS, it was titled as Turkish Accounting Standards (Turkiye Muhasebe Standartlari - TMS). Under this heading, both and IAS (International Accounting Standards) are translated as Financial Reporting (TFRS - Turkiye Finansal Raporlama Standartlari) and Accounting (TMS) respectively. Before new Commercial Code's becoming in effect in July 2012, that were obliged to use TMS were limited to public companies, banks and insurance companies.Today, even after new Commercial Code, it is still legally uncertain whether TMS is only set of rules to be used in financial reporting or not. After several changes made in new law, as of this paper is being composed, new code implicitly commands that companies are still primarily required to keep accounting records according to tax accounting rules and submit tax purpose financial statements first. With this prioritization of tax accounting, law still defines all business entities and so-called the merchants as TMS appliers. However, a newly established governmental agency, Public Oversight, Accounting and Auditing Board - POOAASB (Kamu Gozetimi Kurumu - KGK) limited application of TMS by giving greater emphasize on auditing.As of beginning 2017, after several changes, for non-financial and non-public companies, only ones meeting certain threshold (based number of employees, amount of turnover, amount of total assets) are required to issue audited financial statements. Although, it is stated that, financial statements of those that are subject to independent auditing are to show a true and fair picture of financial position, financial performance and changes in financial position, it has not been stated clearly which set of accounting standards would be used in doing that. Those that are to be audited, do not have to prepare financial statements according to TMS. If they wish they can choose not to apply TMS and still be audited. For these there is a guidance issued by POAASB that defines limited number of adjustments in original tax based financial statements for certain items only. In case of TMS application, conversion process requires much greater deal of work to be done on tax based financial statements.Although, it is not approved as only set of financial reporting rules in Turkey, TMS greatly attracts interest of accounting professionals in Turkey for some time. The author of this paper was involved in many educational programs either as an educator or as a participant for last several years. Based on interactions with accounting professionals that were striving to come to an understanding of TMS, one can easily say that there was significant amount of hardship felt among many accountants. Of course to name these hardships and to diagnose root causes of them, more scientific research is necessary. Unfortunately, to conduct such a research project is extraordinarily difficult due to fact that measurement of variables in such a research model is too indirect. …

Bankruptcy Prediction Using Altman Z-Score Model and 5W + 1H Approach to Elaborate Strategy (Case Study: Spin Off Company)

One way to assess the condition or assess the performance of the company can be done by analyzing the company’s financial statements. The financial statement is a formal record of the financial activities and position of a business, person, or other entity and its objective to provide information about the financial position, performance and changes in financial position of an enterprise. Companies that were examined in this study is a spin off company which is a vendor and a company managed by university. In the financial statements it is known if the company has financial difficulties and at a decline stage. Companies that are at this stage susceptible to bankruptcy. Thus, the purpose of this study is to predict corporate bankruptcy and then proposed alternative strategies that can be used as a solution to the problems of the company. To predict bankruptcy of company, this research used the Altman Z-Score model to calculate financial ratio based on financial statements of company in 2014–2015 and then will be proposed a strategies for the company in accordance with the score. The proposed strategy is defensive strategy which divided into three, namely retrenchment, divestiture and liquidation. Each of the proposed strategies analyzed with 5W+1H (what, where, when, who, why, and how) to provide a clearer picture of the strategy.

Memprediksi Tingkat Kelangsungan Usaha PT KAI Melalui Pendekatan Altman Z-Score

PT. Kereta Api Indonesia (PT. KAI) a State Owned Enterprises which currently is one of the major players in the ground transportation services industry has long been actively involved in the business of land transportation services. This study is limited in the scope of the analysis of the ratio-financial analysis, and then formulated using Alman z-score method. Ratio analysis is done based on financial data obtained from PT. Kereta Api Indonesia Indonesia ranging from 2012 to 2013. Then the figures obtained will be correlated with theories relevant financial, in order to obtain valid results that can be scientifically defensible. Furthermore, a comparison test as a reference in determining the potential failure of the items in the financial statements, and determine which of the posts have a strong and significant correlation. Media that can be used to examine the health condition of the company was a financial report consists of the Balance Sheet or Statement of Profit / loss, or results of operations, Cash Flow Statement, Statement of Changes in Financial Position. The financial reports produced by the management of a company is the end result of the process of business activities undertaken by the existing components in the company. The financial statements are made to account for the activities of the company to the owner and provide information about the financial position of the company has been achieved against the parties concerned.

Audit Delay and Its Implication for Fraudulent Financial Reporting: A Study of Companies Listed in the Indonesian Stock Exchange

JEL Classification : F3, G15 1. Introduction One of characteristics reflecting the professionalism of is timely submission of audit reports. The timeliness of companies in publishing financial reports to public and particularly to Bapepam depends on auditors timeliness in completing audit works. Such timeliness is related to the benefits of the financial statements themselves (Kartika, 2009). Halim (2000) mentions that the timeliness of the presentation of financial statements and audit reports is the main prerequisite for the improvement of a company's stock price. On the other hand, auditing is an activity that takes time, which sometimes delays the announcement of earning and presentation of financial reports. Audit delay is the time difference between the dates of financial statements and the dates of audit opinions stated in the financial statements, which indicates the length of time of auditing processes. Research on audit delay has been conducted by several researchers, such as Carslaw and Kaplan (1991), Countis (1976), Dyer and McHugh (1975), Halim (2000), Givoly (1982), Thalassinos et al. (2013 and 2014), Thalassinos and Liapis (2013) and Na'im (1999). Conclusions of all these studies suggest that the intertwining of such factors as the size of a company, the total revenue, profitability, the duration of becoming a client KAP, and the company's books is positively associated very strongly with audit delay. In addition to these factors, there are other factors which can affect audit delay, such as the opinions of auditors. Research conducted by Whittred (1980) indicated that companies receiving opinions from qualified experienced longer audit delay. This phenomenon occurs because the process of granting the qualified opinions involves negotiating with clients, consulting with more senior audit partners, and the expansion of the scope of the audit. Although much research exploring audit delay of companies listed in Stock Exchange has been done, there are still many variations of the results. This is probably due to the differences of the nature of independent and dependent variables studied, differences in terms of the observation period, or differences with regard to statistical methodologies employed in the studies. This study examines factors which affect audit delay, including the company size, income, and operating system information. In addition, the study adds 'fraudulent as a variable which is a form of financial reporting implications of the audit delay. Based on the background issue, the problems of this study can be formulated as follows: * Do the use of information system, company size, and operating income have effects on audit delay? * Does the audit delay influence fraudulent financial reporting? The objectives of this study are: * to examine if the use of information system, the company size, and operating income affect audit delay; * to determine the effect of delay against fraudulent financial reporting. 2. Theory and Hypothesis According to IAI (2009), the prime objective of financial statements is to provide information regarding the financial position, performance and changes in financial position of an enterprise; this is useful for a large number of users for making economic decisions. The quality characteristics of financial statements as set forth in the Statement of Financial Accounting Standards (SFAS: 2009) are: Understandable Users are assumed to have adequate knowledge of economic and business activities, accounting, and willingness to study the information with reasonable diligence. Relevant The information has 'relevant' quality if it can influence the economic decisions of users, helping them to evaluate the events of the past, present and future. Reliable The information has the quality of being reliable if it is free from misleading understandings and material errors. …

Memprediksi Tingkat Kelangsungan Usaha PT KAI Melalui Pendekatan Altman Z-Score

PT. Kereta Api Indonesia (PT. KAI) a State Owned Enterprises which currently is one of the major players in the ground transportation services industry has long been actively involved in the business of land transportation services. This study is limited in the scope of the analysis of the ratio-financial analysis, and then formulated using Alman z-score method. Ratio analysis is done based on financial data obtained from PT. Kereta Api Indonesia Indonesia ranging from 2012 to 2013. Then the figures obtained will be correlated with theories relevant financial, in order to obtain valid results that can be scientifically defensible. Furthermore, a comparison test as a reference in determining the potential failure of the items in the financial statements, and determine which of the posts have a strong and significant correlation. Media that can be used to examine the health condition of the company was a financial report consists of the Balance Sheet or Statement of Profit / loss, or results of operations, Cash Flow Statement, Statement of Changes in Financial Position. The financial reports produced by the management of a company is the end result of the process of business activities undertaken by the existing components in the company. The financial statements are made to account for the activities of the company to the owner and provide information about the financial position of the company has been achieved against the parties concerned.

Changes in financial position of state as a security problem

The second half of the 20th century will be remembered as the period of the biggest liberalisation in history in the area of international economic relationships. Many factors served that fact. First of all, attempts to eliminate circumstances which were the root cause of previous world wars. Along with liberalisation of the trade processes, there was a process of growth of public debt which significantly restricted public institution activities. Due to lack of funds in the budget, countries were forced to mortgage and pay a significant amount of money for the rates of interest. Developing countries are especially in a very difficult position because they are under constant pressure and are forced to accept unfavorable arrangements in order to make their system work at all. The circumstances which were mentioned are the hardest for the citizens, primarily due to the lack of funds for the financing of the public sector. Because of the various restrictions, the health system, education and public administration, have a constant deficit and are not able to follow the needs of the local population. Dysfunction of national institutions represents a security problem par excellence.

Совершенствование форм отчетности в отношении раскрытия информации о государственных субсидиях

The article is devoted to the examine the peculiarities of information disclosure of government subsidies in the accounting (financial) statements of the agricultural organizations. On the basis of the study we offer main directions of improving the reporting forms for government grants in order to form an objective idea about the expected changes in financial position and operating results of the organization.

INDICATOR SYSTEM FOR MEASUREMENT OF FINANCIAL AND ECONOMIC ACTIVITIES IN PUBLIC INSTITUTIONS

The object of the work is study of methods for analyzing the current financial and economic performance of a company as well as the usage of existing methods for the assessment of the company in the current and future periods. Analysis of financial and economic performance provides not only assessment of the current situation of a company, but a projection of its future behavior. Thus, the results can be used for planning and prediction. Different ways of handling of economic information are currently used in activity analysis to study the factors influencing the performance of a company and to account its reserves. An objective assessment of the financial and economic situation of the modern enterprise is the crucial part of justified decision-making. It forms the basis for determining the development strategy and acts as one of the key indicators for investors and creditors. Tracking and evaluating the effectiveness of a company requires above all comprehensive assessment of its financial and economic activities, monitoring the implementation of decisions, and identification of reserves for improvement. The process of activity analysis requires generalization of models which allow using their results both as a guide for future development of the economic system as well as a base for comparison and evaluation of the present state of the company. This enables justified decision making in particular situations and clarifies usage of existing methods for assessment of the company in the current and future periods. Results . Financial and economic activities of a company require comprehensive analysis, which may be carried out in the following steps: formulating and analyzing business objectives of the company, forming the information basis, constructing a comparison table, analyzing the data, producing a comprehensive rating score of the financial and economic situation of the company. Comprehensive rating score should take into account all important parameters of financial, economic, and industrial activity in the company. It should be constructed using the data on the production potential of the company, its profitability and business activity, financial independence and financial status, etc. The rating score can be determined using additive convolution. Practical value . Thus, a comprehensive analysis of financial and economic performance of a company through dynamic analysis using reference matrices allows: to get a justified assessment of the financial position and financial results of the company; to identify the causes of changes in financial position and financial results; to calculate a comprehensive rating that takes into account the most important parameters of financial, economic, and production activity of the company; to provide well-reasoned managerial decisions in finance in order to improve the financial condition and financial results of the company and to increase the efficiency of its economic activity. Achieved results enable conducting a comprehensive analysis of the financial and economic state of public institutions.

TEORI AKUNTANSI MASA KINI

<p><em>This paper presents the development of the scope of accounting theory because of the growing need for information which is presented in the financial statements. The specific objective of financial statements is to present the consolidated financial position, results of operations, and changes in financial position in accordance GAAP (General Accepted Accounting Principles). The definition of this accounting purposes have weaknesses or limitations.Critics of the limitations of conventional accounting that must be done parallelization with practices in the present economic institutions that continue to grow with various forms of economic transaction of business done. This paper discusses the five major developments in accounting theory scope of the present and future who attempt to address the above challenges, namely: Accounting for the public economy (accounting socioeconomic); Accounting for human resources (human resources accounting); Accounting for the cost of capital (accounting for the cost of capital); Report of financial forecasts (reporting of Financial forecasts); The trend towards multi-national accounting. This proves, that the accounting as a science must continue to conduct research and intensive studies to give birth to the theory of accounting in accordance with the needs of economic civilization of the present and future need.</em></p> <p><em> </em></p> <p><strong><em></em></strong><em></em></p>

Impact of Economic Crisis on Innovation Behaviour of Industrial Firms In Russia

The paper focuses on empirical analysis of major factors that determine innovation activities of Russian manufacturing firms during the crisis. We presume that the crisis has ambiguous effects on firms’ behaviour, on one hand limiting their financial capabilities to invest into new products and/or technologies, and on the other hand – creating additional incentives to innovate and opportunities to enter new markets. We use micro-level data to reveal major determinants of changes in innovation activity of a firm, including structural characteristics (size, industry, etc.), competitive environment (intensity of competition and type of main competitors), changes in financial position of a firm, it’s pre-crisis performance and innovation activity, the declared strategy of a firm and other factors. The empirical part of our research is based mostly on the results of two surveys of industrial firms conducted in August of 2008 (before the crisis) and in September 2009 (during the crisis). About 600 medium and large firms mostly in manufacturing industries have been surveyed using specially developed survey instruments. We show that while general impact of the crisis on innovation activity was strong and negative different industries have been damaged to different extent. The adjustment to the crisis led to sharp decrease in investment intensive innovations while R&D activity has diminished much less and for some groups of firms has even intensified. The drop in innovations is typical for firms pursuing the strategy of incremental improvements of technology and products or with the strategy of large-scale investments in enhancing the production of traditional goods, rather than for firms focused on the development of new products. We found further that about 30% of manufacturing firms during the crisis still pursued innovation based strategies and this behaviour does not is depend on industry or even financial position.

The Use of Social Surveys to Measure Drought and the Impact of Drought

Although the term drought is widely used, defining it is conceptually and technically difficult and there is no generally accepted definition. This article uses data from an Australian social survey of people living in agricultural areas to test the validity of using general social surveys to ask respondents whether they are living in an area that is drought affected. Strong evidence is found that the survey based self-report measure of drought is both internally consistent and correlated with the standard Australian meteorological (rainfall deficit) measures of drought and thus provides a valid measure of whether individuals are experiencing the drought. The relationship between self-report drought and the standard meteorological measure of drought and financial hardship and changes in financial position is estimated. While a negative association between drought and financial position is found for both measures, the relationship is stronger for the self-report than the meteorological definition. The self-report measure is more closely linked to the economic, social and community impacts of low rainfall and provides greater flexibility in the geographic area over which drought is measured—thus survey data about drought allows respondents to define the area in way which is meteorologically, topographically or agriculturally meaningful.

Financial Accounting: A Global Approach

Preface. About the author. PART I. UNDERSTANDING FINANCIAL REPORTS. 1. The Financial Accounting Reporting System. 2. Accounting Standards and Ethics. 3. The Financial Statements. PART II. PREPARING THE FINANCIAL STATEMENTS. 4. The Accounting Process. 5. Accrual and Closing. 6. Accounting Information Systems. PART III. REPORTING FINANCIAL POSITION. 7. Non-Financial Assets. 8. Financial Assets and Liabilities. 9. Equity. PART IV. REPORTING CHANGES IN FINANCIAL POSITION. 10. Equity Changes. 11. Cash Flows. PART V. PRESENTING AND EVALUATING FINANCIAL STATEMENTS. 12. Comparability and Consistency. 13. Assurance Systems. Glossary. References.

Organization of the Statutory Audit of Financial Statements in Romania

Economic entities around the world, regardless of their membership - public or private sector - the size, the object of activity, prepare financial statements for presentation of financial information users (investors, creditors, customers, suppliers, public institutions). The financial statements provide information about financial position, performance and changes in financial position of an entity - information underlying to base decision process. For Romania, the financial audit was not a tradition. Recognized as a top area of the accounting profession, financial audit was legislated in 1999. Statutory audit, audit of annual financial statements or consolidated annual statements have been established 9 years later (Emergency Regulation no. 90 June 24, 2008), by transposing Directive 2006/43/EC of 17 May 2006 of the European Parliament and of Council on statutory audit of annual accounts and consolidated accounts, in order to ensure oversight of auditors, in the public interest.