Financial Reporting Within The Context Of A Good Corporate Governance

Corporate governance is increasing the value of an economic entity on solid, well-grounded base, making use of the professionalism of the management team and all employees; it creates a close link between the added value of the economic entity and the tools available to management and used in order to achieve effective control on the results reflected in the entity financial reports. Applying the principles of corporate governance is an asset to economic entities which can thus more easily manage specific activities, knowing and controlling the risks that may affect those and reaching the established objectives. Therefore, corporate governance applies to both privateand public sector. According to the author, the public should be more interested in the application of corporate governance principles by the fact that economic entities operating in this sector provide services for the society, its members contributing by paying taxes to the consolidation of national budgets; this is doubled by the fact that members of the society have high expectations that all money is spent safely and in terms of efficiency.