Being a member of the EU, Romania in order to comply by the requirements of the membership makes investments for modernization and development of its infrastructure. In the year 2008, Romania showed economic development by an impressive 7.1%, but since then there has been a decline with 1% in 2012. The public sectors act as the buyers of products and services, while the agriculture sector is funded by the EU or developmental banks like the World Bank among others (“Doing business in Romania”). In the 1990s, Romania started to reform its economy to make it completely market-based. The government applied reform methods between 2000 and 2007 in order to maintain growth and stability in the long run. Although there was economic growth in 2008, there was huge disparity in the income between Romania and the EU. For solution, the government implemented many flexible policies to allow firms to use their resources like labour and capital more efficiently (“Romania: Functional Review” 64). Legal environment and forms of business Structuring of market-based economy in Romania in the 1990s has stabilized the legal regulations of corporate entities. Business activities can be performed by any individual who has the professional qualifications to execute commercial activities, or by legal bodies who have documental rights and efficiency to perform business activities. The classes of business entities in Romania as per regulations are “commercial companies, regies autonomes, economic interest groups and European economic interest groups, authorised persons, individual enterprises and family enterprises.” (“Forms of doing business” 27) Joint ventures do not enjoy any legal status as stated by Romanian law and they concentrate on specific operation or series of operations. The members contribute funds and other assets for a common goal and get share of the profit and loss of the ventures. Joint ventures can have shareholders minimum of two with no limit to the maximum number. The number of shareholders can be one to 50 in case of limited liability companies which can include an individual or legal entity (“Forms of doing business” 27-28). The legal aspect of Romanian employment or Labor Code is governed by Law No. 53/2003, collective bargaining agreement by Law No. 130/1996 and labour conflicts are governed by Law No. 168/1999. Ad per the Labor Code, the terms of collective bargaining agreement that are agreed on at national level can be applied on all employers and employees in Romania in any kind of business activity (“Tax and legal guide....” 3). Capital markets For economic development of any country, an active capital market plays an essential role. The capital market should be such that national assets can be freely mobilized for serving the national economy. On the other hand, it should be able to effectively utilize the available financial resources. The role of foreign investment is important for maintaining competitive environment in the receiving country. Foreign investments generated by another economy have huge potential to accelerate the GDP. Similarly, in Romania financial sources in the form of external capital like foreign investments pave the way for both quantity and quality development of internal capital, and also allows optimum use of the unused available resources. With the development of capital market in Romania there emerges “
Romania: Business and Accounting Environment Introduction Romania is a member country of the European Union and is rich in resources for attracting U.S. investors. It has marketplace for 22 million and cultivable land for over 37 million acres. The workforce in this country is well qualified with over 50,000 experts in information technology…
sale 900000 1.3 1170000 Less cost of sales 720000 1.3 936000 gross profit 180000 234000 less depreciation 70000 1.4 98000 other expenses 30000 1.3 39000 net profit 80000 97000 c) IAS21 provides accounting concept when preparing financial statement of foreign subsidiaries.
Moreover, the local headwinds such as the increasing trend of the interest rates, policy impediments and the inflation has added on to the shaky global environment on the growth of the domestic frontier. Furthermore, muted global sentiments were followed by acute financial instability that led to decrease in the totaling of net capital inflows US $66 billion as against net inflows of US $62 billion a year ago.
and Hennes & Mauritz AB (H&M) in their latest annual reports concerning the year 2011. The environmental disclosures have been compared with G3 sustainability guidelines of the Global Reporting Initiative (GRI) taking into account different environmental performance indicators related to various disclosure requirements as recommended by GRI.
Accounting is regarded as the language of business and hence IASB insists that accounting must speak an international language. In order to make global business transactions easier, the IASB/IASC had dealt with different accounting practices across the Europe in association with EU.
On the contrary, there are some countries in which international accounting standards are considered as an appropriate means for carrying out financial reporting. This difference in their financial reporting is based on varying prejudices and preconceived concerns, the basis of which has often been questioned by experts and proponents of adopting national and international accounting standards.
The IASC (International Accounting Standards Committee) Foundation is a private, not-for-profit organization that oversees the activities of IASB. As stated above, the main objective of IASC Foundation is to oversee development and refinement of IFRS that can be applied globally.
The IASC was set up in 1973 by the professional accounting bodies of nine countries with two principal objectives including: 1) the formulation and publication of accounting standards to be observed in financial statements and to promote their worldwide acceptance and; 2) To work generally for the improvement and harmonization of regulations, accounting standards, and procedures relating to the presentation of financial statements.
forms an important role through rights of nationalized enterprises and the management of costs of a range of the goods containing rice, electricity and fuel. The financial freedom score of the country about 58.5 and it is ranked about 21st out of about 42 countries in the
In other words, the introduction of double entry bookkeeping is one aspect of westernizing the Japanese accounting system (Okada 1997). Prior to this time, the central government was very influential and determined what happened in the
10 pages (2500 words)Essay
Get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Apply my DISCOUNT
Got a tricky question? Receive an answer from students like you!Try us!
Didn't find an essay?
Contact us via Live Chat, call us at +16312120006or send an email to firstname.lastname@example.org