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Ifrs Adopting Process In Romanian Banks - Impact On Independent Audit Of Financial Statements

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  • Adela Socol

Abstract

The purpose of this paper is to study the manner in which the banking independent auditors' mission could be influenced by the International Financial Reporting Standards IFRS adoption in Romanian banks beginning with the financial year ending 31 December 2012. The paper aims to develop a theoretical and empirical comparative analysis of IFRS and Romanian Accounting Standards applied in the banking field by examining a bank's Financial Statements (Balance Sheet) for the financial exercise ending 31 December 2011. Our analysis illustrates the differences between these two categories of standards and configures the causes of the differences and the way in which the new IFRS may affect the independent audit process of the financial statements of banks. Our approach represents a forward-looking landing of the challenges of the audit of the IFRS banking financial statements, because the financial statements of the year ending to 31 December 2012 will be the first issued according to the new accounting rules based on IFRS. We study the Auditors' Reports for the year 2011 of the listed Romanian banks at the Bucharest Exchange Stock and emphasize the auditors' fear regarding to the subsequent events, after the beginning of 2012, referring to the new IFRS standards applicable from 1 January 2012.

Suggested Citation

  • Adela Socol, 2012. "Ifrs Adopting Process In Romanian Banks - Impact On Independent Audit Of Financial Statements," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(14), pages 1-12.
    • Handle: RePEc:alu:journl:v:2:y:2012:i:14:p:12
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    File URL: http://oeconomica.uab.ro/upload/lucrari/1420122/12.pdf
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    References listed on IDEAS

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    1. International Monetary Fund, 2012. "Czech Republic: Detailed Assessment of Observance of Basel Core Principles for Effective Banking Supervision," IMF Staff Country Reports 2012/172, International Monetary Fund.
    2. International Monetary Fund, 2012. "Mexico: Detailed Assessment of Observance of Basel Core Principles," IMF Staff Country Reports 2012/066, International Monetary Fund.
    3. Adela Socol, 2011. "Loan Losses Provisioning Processes In Romanian Banks During January 2007 - February 2011," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(13), pages 1-11.
    4. Mariarosaria Agostino & Danilo Drago & Damiano Silipo, 2011. "The value relevance of IFRS in the European banking industry," Review of Quantitative Finance and Accounting, Springer, vol. 36(3), pages 437-457, April.
    5. A K M Kamrul Hasan & Yasushi Suzuki, 2021. "Introduction," Springer Books, in: Implementation of Basel Accords in Bangladesh, chapter 0, pages 1-12, Springer.
    6. International Monetary Fund, 2012. "Republic of Slovenia: Detailed Assessment of Observance of Basel Core Principles for Effective Banking Supervision," IMF Staff Country Reports 2012/324, International Monetary Fund.
    7. Asokan Anandarajan & Bill Francis & Iftekhar Hasan & Kose John, 2011. "Value relevance of banks: global evidence," Review of Quantitative Finance and Accounting, Springer, vol. 36(1), pages 33-55, January.
    8. Yuri Biondi & Tomo Suzuki, 2007. "Socio-Economic impacts of international accounting standards : an introduction," Post-Print halshs-00258291, HAL.
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    Cited by:

    1. Attila Tamas-Szora, 2016. "Views on the Credibility of the Nonfinancial Information – New approaches," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(18), pages 51-63, November.

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    More about this item

    Keywords

    IFRS applying; active banks from Romania; independent audit; financial statements of banks;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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