Romanian Accounting Research Articles

Women in Accounting in Communist and Post-Communist Romania: Academia Case Study

Abstract We investigated whether there are differences in women’s progress in Romanian accounting academia between the communist and post-communist periods, and compared to the international context; and whether the legal framework in Romania influenced women’s accounting careers in academia. For the communist period, we found that for our topic training for the exercise of the profession, the evolution of women’s academics, although it did not exceed that of men, outperformed that of women in other contexts, especially in Anglo-Saxon countries. Then, our findings were similar to the international context for teaching and leadership in academia. For the post-communist period, we observed Romanian academics’ similitude in teaching and bachelor studies and superiority in scientific publications and doctoral studies compared to their international counterparts. Also, the complexity of provisions assuring general or women’s rights, as well as the pace of their issuance aligned with women’s experiences in accounting academia.

Accounting and taxation in Romania: from connection to disconnection?

Research Question: What are the effects of the evolutions in tax and financial reporting regulations on the book-tax relationship in the case of Romanian listed companies; is the de jure trend towards a disconnection confirmed, and what findings can be made from a de facto analysis based on the effective tax rate (ETR)? Motivation: Istrate (2011) applied the grid proposed by Lamb et al. (1998) and found that, in 2020, the de jure trend was clearly towards a book-tax disconnection. My intention is to replicate this analysis for 2021 and to add some other variables that could characterize the period, in order to assess the 2021 de jure and de facto (dis)connection. Idea: Mandatory introduction of IFRS for some listed companies, adaptation of the Romanian accounting rules to the European directive 34/2013, modification of the tax rules, in particular as a result of European efforts to fight tax avoidance, unprecedented situations such as the covid-19 crisis were just as many reasons for companies to adapt their tax and financial reporting behaviours, which makes the more interesting the analysis of the book-tax relationship. Data: For the application of the analysis grid proposed by Lamb et. al (1998) and developed later by other authors, I have analysed the accounting and financial reporting regulations, in parallel with the treatments provided by the Romanian tax law. For the de facto analysis attempt, I analysed more than 3,800 observations about the Romanian companies listed on Bucharest Stock Exchange for the period 2000-2021. Tools: The assessment of the book-tax relationship was done by applying the Lamb et al. (1998) model, with the six possible cases: from total identity, to total disconnection. My analysis takes into account 40 key elements. In the case of de facto analysis, I calculated an ETR as the ratio between the current tax expense to profit before taxes. Findings and contributions: The study proposes a de jure analysis that confirms the evolution towards almost total disconnection between accounting and tax rules, especially for companies applying IFRS. The de facto analysis allows us to observe that ETR significantly different from the statutory tax rates (STR) – which confirms the disconnection between accounting and taxation. So, for the Romania listed companies, in general, the book-tax disconnection explains and justifies the differences between the ETR and the STR; in this case, the ETR is not really the best proxy for the tax avoidance, as many studies in the literature proposed.

Acceptance of digital instruments in the accounting profession

The digital transition has affected and continues to affect all sectors of the economy. The COVID-19 pandemic forced many industries, including the accounting sector, to adopt digitization measures to maintain their activity during this restricted period. Innovative systems and advanced technologies thus became indispensable in the accounting profession, and despite its inability to replicate human intelligence, Artificial Intelligence (AI) was swiftly adopted for many accounting processes. The purpose of this study was to explore how the Romanian accounting profession accepted the digital instrument transformation. A deductive approach from the general to the particular was used to highlight the key aspects and their implications in the accounting profession. In addition, the technological acceptance model (TAM) was correlated with the external variables of the technology-organization-environment framework (TOE) to develop 13 hypotheses. A questionnaire was then applied, which validated 9 of these hypotheses. The research results indicated that the digital transition by the accounting profession in Romania is a complex process that is in a preliminary stage compared to that in European Union member states. This study has an inherent series of limitations, which can provide opportunities for future research in the field.

EXPLORING THE DIGITAL LANDSCAPE: STUDENT PERSPECTIVES ON THE FUTURE OF ACCOUNTING

The goal of this paper is to better comprehend the importance of digitalisation related to Romanian accounting profession. In this regard we started by reviewing the scientific papers approaching the digitalisation and artificial intelligence topic in accounting field. Then we conducted an empirical study that analyses students’ behavior when dealing with digitalisation in accounting field, having as main objective to illustrate both the positive and negative aspects perceived by students regarding the digitalisation of the financial-accounting field, especially the accounting profession. The empirical research was carried out between April 2023 and May 2023, and the research method used was the survey, the instrument used being the questionnaire. This has been fulfilled by 118 at the bachelor level students in the accounting field from the Faculties of Economics, within the University of Oradea. This paper is going to validate the different importance given to digitalisation, by accounting professionals in Romania. The research questions that this study aims to answer are: How necessary do they consider specialized courses in digitalizing accounting to prepare them for the changes brought about by this process? What are their preferences regarding teaching methods in accounting digitalisation courses: online, onsite, or in a hybrid format? A significant part of those surveyed considers that the positive effects of digitalisation in accounting include reducing waiting times, increasing work efficiency, facilitating access to information, and reducing paper consumption. However, there are also negative aspects, such as the risk of data loss due to technical issues or security breaches. To maximize the benefits and minimize the risks, it is essential for accountants to understand and apply accounting principles and standards correctly. Digitalisation should complement, not replace, professional judgment.

Satisfaction and Performance of Romanian Employees Working in the Accountancy and Human Resources Fields

Abstract Professional performance is an indicator of professional activity that refers to the concrete way in which an employee carries out the activities related to his position. Regarding the relationship between motivation and satisfaction, there is no full agreement between the opinions of the authors, which can be explained by the complexity of the respective phenomena and by their sometimes very similar nature. They appear in a dual quality, both cause and effect. There are cases when intense, long-lasting satisfaction can turn into a motivational source. Professional satisfaction has several dimensions. Some include job satisfaction by itself, others include salaries, recognition, relationship with managers and colleagues, culture, and philosophy of the structure. The aim was to identify the relationship of different factors related to the level of performance and professional satisfaction among accounting and human resources employees. The research instruments used in this research measured scores of the variables as professional performance, job satisfaction, perceived self-efficacy, salary and advancement, The results show that employees who demonstrate a high level professional performance have also a high level of job satisfaction (r=0,566, p=0,000), but also there is a significant relationship between professional satisfaction and salary and advancement (r=0,571, p=0,000). Taking into account a certain staff turnover in Romanian accounting companies, it can be assumed that these very factors are the main dimensions where managemment can act to streamline the configuration of positions, fulfillment of tasks and delegation of responsibilities..

Important stages in the development of Romanian accounting profession (from 1800 up to now)

El conocimiento de la historia ayuda a entender el presente y a predecir el futuro. Al aplicar esta afirmación a la profesión contable, nuestro propósito es contribuir al conocimiento de la historia de la profesión contable en Rumania, a través de una investigación documental e historiográfica.
 Existe muy poca documentación en Rumania en relación con los momentos clave de la historia de la profesión contable en Rumania tanto en el contexto socio-económico como político de nuestro país.
 Este artículo presenta algunos hechos significativos en la historia en la historia de la profesión contable en Rumania. Se identifican cuatro períodos desde 1850: 1850-1900, período que se caracteriza por la adopción de las mejores prácticas contables europeas; 1900-1950, período en el que la profesión contable se involucró realmente en la vida económica, interesándose por el desarrollo de actividades académicas por parte de sus miembros; 1950-1990 es un período marcado por la “adopción” del modelo contable soviético, período en el cual el espíritu y la profesión contables quedaron destruidos; en el último período, desde 1990 hasta nuestro días, Rumania comenzó a mejorar la convergencia de su sistema contable, aplicando en una primera etapa el modelo francés, para continuar luego en nuestros días con su aproximación a los IFRS. El papel jugado por la profesión contable en las últimas décadas es crucial, debido a su motivación y los deseos de implantar “el mejor” sistema contable, así como su actividad diaria, desarrollada en provecho de sus miembros.

Assessing the Contribution of Managerial Accounting in Sustainable Organizational Development in the Healthcare Industry

Sustainability and digital transformation are two phenomena influencing the activities of all organizations. Managerial accounting is an essential component of these transformations, having complex roles in decision-making to ensure sustainable development through implementing modern technologies in the accounting process. This paper studies the roles of digitized managerial accounting in organizational sustainability drivers from a decision-making perspective. The empirical investigation assesses the influence of managerial accounting on the economic, social, and environmental drivers of sustainability from the perception of 396 Romanian accountants using an artificial neural network analysis and structural equation modeling. As a result, the research provides a holistic view of the managerial accounting roles enhanced by digital technologies in the sustainable development of healthcare organizations. From the accountants' perception, the leading managerial accounting roles on organizational sustainability are enablers and reporters of the sustainable value created in the organization. Additionally, the roles of creators and preservers are seen as relevant by a significant part of the respondents. Therefore, healthcare organizations must implement a sustainability vision in managerial accounting and accounting information systems using the capabilities offered by new digital technologies.

Gender Discrimination Insights in Romanian Accounting Organisations

The paper investigated gender inequalities in the accounting profession in the specific context of an eastern European country, in the past heavily dominated by men, but now with a substantial number of women. Thus, we used a questionnaire survey explored the relationship between women's perception of discrimination and institutional and individual characteristics. Institutional factors such as rewards practices, opportunities, and access to top positions in organisations influence women's perception of gender discrimination. Concerning the intersectionality of individual characteristics interaction, our results revealed that women professionals with higher academic achievement and children are more likely to report discrimination. In contrast, women professionals with a higher-ranking position in organisations and those working in the public sector are less likely to report it compared with those from the private sector. These findings are of interest from a theoretical perspective to those who explore gender-related issues in general and in the case of accounting organisations. They are also helpful from a practical standpoint regarding the management of these accounting organisations, which should ensure gender-equitable policies for employees.

ETHICS IN THE ROMANIAN ACCOUNTING PROFESSION. A GENDER AND RELIGION COMPARATIVE STUDY

The goal of this paper is to better comprehend the importance of ethical behavior related to gender and religion in the Romanian accounting profession. In this regard we started by reviewing the scientific papers approaching the ethics topic of research. Then we conducted an empirical study that analyses students’ behavior when dealing with ethics in accounting field, having as main objective the assessment of the students’ perceptions regarding the importance of the ethical behavior, as potential or current employees in the field of accounting. The empirical research was carried out between May 2022 and June 2022, and the research method used was the survey, the instrument used being the questionnaire. This has been fulfilled by 100 master students in the accounting field from the Faculties of Economics, within the University of Oradea as well as the University of Arad. This paper is going to validate the different importance given to ethical behavior, by accounting professionals in Romania depending on gender. The research questions that this study aims to answer are: Does the accountants’ gender influence the ethical behavior of the accounting profession? And Does the accountants’ religious background influence their sense of ethics? Results obtained document a different level of given significance to ethical behavior depending on gender, but not on religious background. A significant part of those surveyed considers that under pressure or salary motivation from the management of the entity, they could decide to change an accounting policy that could affect the true image of the company.

Assessing Digital Transformation of Cost Accounting Tools in Healthcare

The expansion of digital technologies has significantly changed most economic activities and professions. Digital technologies penetrated managerial accounting and have a vast potential to transform this profession. Implementing emerging digital technologies, such as artificial intelligence, blockchain, the Internet of Things, big data, and cloud computing, can trigger a crucial leap forward, leading to a paradigm-shifting in healthcare organizations' accounting management. The paper's main objective is to investigate the perception of Romanian accountants on implementing digital technologies in healthcare organizations' accounting management. The paper implies a study based on a questionnaire among Romanian accountants who use various digital technologies implemented in traditional and innovative cost accounting tools. Based on structural equation modeling, the results emphasize the prevalence of innovative tools over traditional cost accounting tools improved through digital transformation, digital technologies assuming the most complex and time-consuming tasks. Moreover, the influence of cost accounting tools improved through digital transformation on healthcare organizations' performance is much more robust in the case of innovative tools than in the case of traditional cost accounting tools. The proposed model provides managers in healthcare organizations with information on the most effective methods in the context of digital transformation.

Ethical Modelling of the Accounting Profession Based on the Value Judgements of Romanian Accounting Professionals

There is a great contrast between the real role of accounting and its public perception. Accounting can be regarded as the language of business operations, but it is also the representative and manipulator of corporate operations and culture. The major challenge of accounting is whether it allows the most honest and knowledgeable managers to make outstanding reporting decisions while preventing the others on the other side of the honesty competence scale from distorting what they know about their company. This study presents the results of the authors’ empirical research about the opinions of accounting practitioners in Romaine on the values, career opportunities and ethical behaviour of the profession. The findings are interpreted at the various levels of accounting professions (administrators, accountants, auditors) by the number of years spent in accounting and groups of internal and external colleagues, focusing on causal relations. The conclusions are drawn through structural-equations-based causal models by the qualification of accounting professionals and the time spent by them in their jobs.Implications for Central European audience: The paper is examining the role and ethics of accountants within the small and medium-sized sectors. In Central Europe, we have a similar cultural and historical background which might be touchable even in the business environment. Accountants influence how business works and what is disclosed about it. For the aim of a clear view, accountants must behave ethically, and they have to learn about business ethics and professional ethic topics.

Struggles in the accounting arena: A geopolitical reading of Romanian accounting reforms

Transition economies have undertaken an accelerated series of reforms after the collapse of communism, aiming at the (re)construction of market institutions. In this paper we build on a geopolitical perspective, and on accounting profession literature to map the accounting reforms in post-communist Romania. We find that accounting reforms are reflecting broader processes of globalisation and Europeanization. By examining the ‘territorial’ disputes over the Romanian accounting reform and the successive leadership of groups of experts from France and United Kingdom we draw attention on the drivers of accounting reforms. These are not limited to the technical aspects of accounting and the interests of the actors, but have their roots embedded in the broader geopolitical setting. In the case of Romania, the European Union accession guides the path and pace of accounting reforms, having as general background the globalisation of accounting regulation.

Artificial Intelligence solutions for Romanian accounting companies

Abstract The fast availability of data coupled with technology evolution, have brought Artificial Intelligence closer to commercial use. The relevance of AI solutions for business models worldwide was underlined by the significant investments made by internet giants such as Google, Apple, Amazon, Facebook. In the highly data driven accounting and finance industry, AI represents a solution to drive better results. The level of AI applications implemented so far is not high. This study aims to highlight the drivers and inhibitors of AI adaptation in the finance and accounting industry based on interviews with experts in Artificial Intelligence in accounting and finance. First step for this study is represented by the process of understanding the current level of knowledge on the field by conducting a literature analysis. In order to structure the results a Technology - Organization - Environment framework was used. While applying Artificial Intelligence solutions the role models and process competencies are crucial. These will assure a success in the process of training algorithms to reach the quality level to operate, without any human intervention and moral concerns.

Digital Transformation in Romanian Accounting Practice and Education: Impact and Perspectives

Digital Transformation in Romanian Accounting Practice and Education: Impact and Perspectives

Ethics education in Romanian economics faculties, members of AFER

Abstract This paper aims to provide a high-level overview of whether and how ethics is taught in Romanian accounting and business faculties, members of the Association of Economics Faculties of Romania (AFER), at Bachelor or Masters’ level (accounting, audit or business administration programs). While there are numerous research papers on how ethics is taught in general and some national surveys in other countries, this is the first analysis of its kind in Romania and it can be helpful for faculties to compare themselves to what their counterparts are doing to teach this important topic for professionals in accounting and business. We analysed the publicly available (detailed and most recent) curricula of 60 programs (22 bachelor and 38 masters) from 14 faculties in 8 Romanian cities. We found out whether ethics is included as a self-standing course or ingrained in the curricula (based on our own hypothesis which we then verified) and whether it is predominantly an optional or a mandatory discipline. We found that, with a few exceptions, the majority of programs analyzed approached ethics (academic or professional) and that the Ethics self-standing courses (or the courses where ethics is included as a secondary subject) have a relatively high importance (judged from the number of credits allocated to them). There are many other variables to analyze in order to make the research more relevant for professors that would want to update their ethics curricula. One would be for instance to analyze whether currently ethics is taught more towards senior years or at the beginning of students’ education.

The accounting practitioner as a driver of digitalization pace

Abstract Accounting digitalization is a very important topic nowadays, not only for practitioners, but also for scholars and many different institutions. Digitalization influences the accounting profession through many ways, but the rhythm of digitalization firstly depends on people involved. Having that the accounting practitioner is the main actor in this field, it is very important to know how his behavior drives the pace of digitalization and whether his experience increases or reduces its rhythm. Using a case-based experiment with 2x2 between subjects and full factorial design, this paper examines the influence of the accountants’ experience and their behavior on digitalization pace. The findings show that Romanian accountants are attracted by digitalization and feel comfortable with this change. Although the results show that the work experience is a factor that influences digitalization changes, there was not enough statistical evidence to confirm the findings. This study contributes to accounting digitalization literature by showing how accounting practitioners react to digitalization change and how the pace of digitalization is driven by their behavior and their experience.

The Beginning of Accounting. The Emergence and Evolution of the Romanian Accounting Thinking

While celebrating a centenary of regulation of the accounting profession in Romania, it is worth remembering the forefathers of the Romanian accounting literature, as well as the first types of accounting, starting from knotted ropes, stringed beads, strings, wax tablets, to simple batch entry accounting, then double entry accounting with all the rules and principles implemented today. We can say that only in its full temporal dimension does accounting acquire full meaning and allows a more accurate assessment of its value.

Convergence to IFRS in Romania – Score per Minute

The current stage of evolution of our society includes the extension of economic, social and political phenomena beyond the physical boundaries that history has drawn and thus requires a change in approach to accounting by adapting specific practices to the new needs of the market. The impact of digitization leads to the visible dissolution of borders and the generalization of accounting practices and tools. The accounting profession is moving towards increasing standardization and national regulations in this area tend to become more international, in an attempt to optimize one of the most important qualities of financial reporting: comparability. In this context, the present study aimed to compare and analyze the divergences between the Romanian accounting regulations applied according to EU Directive 34/2013 through the Order of the Minister of Public Finance no. 1802/2014 for the approval of the Accounting Regulations regarding the individual annual financial statements and the consolidated annual financial statements (OMFP 1802/2014) and the International Financial Reporting Standards. In terms of research methodology, the authors’ approach is a qualitative one with quantitative elements, starting from the analysis of the relevant literature in order to understand and deepen the general context. To investigate the main similarities and differences between the sets of accounting rules the comparative method was used, but also tools specific to quantitative methods for the mathematical calculation of convergence scores between OMFP 1802/2014 and IFRS. Although the Romanian accounting framework has been aligned in many respects with the international one, the obtained results reveal a series of divergences between the two sets of regulations, materialized in different ways of approaching economic transactions.

Perspectives of Romanian accounting professionals on Integrated Reporting

Perspectives of Romanian accounting professionals on Integrated Reporting

Proposals Regarding Accounting for Cryptocurrencies in Accordance with Romanian Accounting Regulations

Romanian legislation does not include concrete regulations on the accounting treatment of cryptocurrencies. They are not recognized as currencies traded on a regulated market and cannot be categorized as “classic” currencies under the laws in this field. Moreover, given the lack of rules and supervision regarding virtual currencies at global level, as well as their diversification, these new types of amounts are classified as speculative assets by the National Bank of Romania. In the laws of other states, according to accounting regulations, these virtual currencies are often classified as inventory or intangible assets. Romanian professionals often face uncertainties regarding the correct way of accounting for cryptocurrency transactions, especially since the accounting treatment has tax implications as well. Therefore, in this article we aim to propose a number of accounting treatments for the most frequent cryptocurrency transactions, in accordance with the Order of the Minister of Public Finance No. 1802/2014 for the approval of the Accounting regulations regarding the individual annual financial statements and consolidated annual financial statements, as subsequently amended and supplemented. In addition, we propose amending the Chart of Accounts so that such elements can be easier to identify in the accounting records of firms that use this type of assets.