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Conservative Accounting Practices Used by Companies Listed on Stock Exchanges in Romania

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  • Ema MASCA

    (Petru Maior University, Tîrgu Mures, Nicolae Iorga,no.1, Tîrgu Mures, 540088, Romania)

Abstract

Academic research shows that financial activity implies accounting conservatism and practical studies prove that regardless of the position of the International Accounting Standards Board (IASB) and academic theories, professional accountants manifest accounting conservatism at the preparation of financial reports. Our study has taken into account the use of adjustments for impairment of assets - a conservative practice, by companies listed on the stock exchanges in Romania. We have found that sustainable companies use this conservative practice in a greater extent than others, so sustainable companies are interested in conservatism more than others. We also have found that professional accountants use revaluation of tangible assets when necessary.

Suggested Citation

  • Ema MASCA, 2015. "Conservative Accounting Practices Used by Companies Listed on Stock Exchanges in Romania," Acta Marisiensis. Series Oeconomica, "George Emil Palade" University of Medicine, Pharmacy, Sciences and Technology of Târgu-Mureș, România - Faculty of Economics and Law, vol. 1, pages 74-101, December.
    • Handle: RePEc:pmu:oecono:v:1:y:2015:p:74-101
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    File URL: https://oeconomica.umfst.ro/O_IX/74-101_Practici%20contabile%20conservatoare%20utilizate%20de%20entitatile%20listate%20la%20bursa%20din%20Romania_Masca%20Ema.pdf
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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