IDEAS home Printed from
   My bibliography  Save this article

Principles- And Rules-Based Accounting Debate. Implications For An Emergent Country


  • Deaconu Adela

    () (Babes-Bolyai University, Faculty of Economics and Business Administration)


By a qualitative analysis, this research observes whether a principles-based system or a mixed version of it with the rules-based system, applied in Romania - an emergent country - is appropriate taking into account the mentalities, the traditions, and other cultural elements that were typical of a rules-based system. We support the statement that, even if certain contextual variables are common to other developed countries, their environments significantly differ. To be effective, financial reporting must reflect the firm's context in which it is functioning. The research has a deductive approach based on the analysis of the cultural factors and their influence in the last years. For Romania it is argue a lower accounting professionalism associated with a low level of ambiguity tolerance. For the stage analysed in this study (after the year 2005) the professional reasoning - a proxy for the accounting professional behaviour - took into consideration the fiscal and legal requirements rather than the accounting principles and judgments. The research suggest that the Romanian accounting practice and the professionals are not fully prepared for a principles-based system environment, associated with the ability to find undisclosed events, facing ambiguity, identifying inferred relationships and using intuition, respectively working with uncertainty. We therefore reach the conclusion that in Romania institutional amendments affecting the professional expertise would be needed. The accounting regulations must be chosen with great caution and they must answer and/ or be adjusted, even if the process would be delayed, to national values, behaviour of companies and individual expertise and beliefs. Secondly, the benefits of applying accounting reasoning in this country may be enhanced through a better understanding of their content and through practical exercise. Here regulatory bodies may intervene for organizing professional training programs and acting towards the improvement of the codes of conduct's effectiveness.

Suggested Citation

  • Deaconu Adela, 2011. "Principles- And Rules-Based Accounting Debate. Implications For An Emergent Country," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 602-608, July.
  • Handle: RePEc:ora:journl:v:1:y:2011:i:1:p:602-608

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Thorsten Sellhorn & Sylwia Gornik-Tomaszewski, 2006. "Implications of the 'IAS Regulation' for Research into the International Differences in Accounting Systems," Accounting in Europe, Taylor & Francis Journals, vol. 3(1), pages 187-217, October.
    2. Ion Ionas¸cu & Mihaela Ionas¸cu & Lavinia Olimid & Daniela Artemisa Calu, 2007. "An Empirical Evaluation of the Costs of Harmonizing Romanian Accounting with International Regulations (EU Directives and IAS/IFRS)," Accounting in Europe, Taylor & Francis Journals, vol. 4(2), pages 169-206, December.
    3. John Francis McKernan & Katarzyna Kosmala, 2007. "Doing the truth: religion – deconstruction – justice, and accounting," Accounting, Auditing & Accountability Journal, Emerald Group Publishing, vol. 20(5), pages 729-764, September.
    Full references (including those not matched with items on IDEAS)

    More about this item


    emergent countries; rules or principles-based system; IFRS;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ora:journl:v:1:y:2011:i:1:p:602-608. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catalin ZMOLE) or (Rebekah McClure). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.