Annual Financial Statements In The Context Of Accounting Convergence

The main objective of accounting is to provide information that ensures a true, clear and complete picture of the assets, financial position, financial performance obtained by the economic entity to all stakeholders, thus ensuring the "transparency of accounting information". This objective can be achieved by periodically preparing summary and accounting reporting documents, which in accounting are found under the name of annual financial statements. The annual financial statements are a source of information to determine how an economic entity carries out its economic activity and reaches maturity. The annual financial statements are the fundamental instrument in adopting the economic-financial decisions at the level of the management of the economic entity. In the financial statements, the information is presented in a way that should support the user in assessing the liquidity of an economic entity's assets and liabilities to help investors, creditors and other users of the annual financial statements analyze an entity's financial position and performance and any changes made due to the economic activity. Starting from this consideration, in this paper we intend to approach from a theoretical point of view the importance, role and principles of the annual financial statements in the context of the new accounting regulations compliant with the European Directives.