THE ADAPTATION OF PROFIT AND LOSS ACCOUNT TO THE CURRENT REQUIREMENTS REPORTING OF THE PERFORMANCES

Authors

  • Liana GADAU

DOI:

https://doi.org/10.26458/1637

Keywords:

the financial performance, the profit and loss account, the models of profit and loss account respond best to users’ needs, a situation of the integrated performance of the enterprise

Abstract

The financial performance - a very complex notion and high informational load forusers of accounting information is reflected best by the financial statements, the profit andloss account and the situation of equity variations. The last situation can be presented as astatement of comprehensive income, including beside the result of profit and loss account, thegains and losses directly recognized in equities without passing through the profit and lossaccount.The development of increasingly complex activities emphasizes the utility, thenecessity of the profit and loss account in the financial reporting by increasing the interest inthe enterprise performance, especially for the dynamic information that this situation canprovide.Meanwhile, there is a declining interest in the historical costs and static information.Although the balance sheet contains information on performance, it does not prevent theachievement of its forecasts.In this paper we propose to approach the profit and loss account in view of tworepresentative referential, namely in terms of IAS 1 standard “The preparation andpresentation of the financial statements” and the national regulation, the Finance Order no.1802/2014 regarding the Approval of the Accounting Regulations on the annual individualand consolidated financial statements, aiming to emphasize the advantages, but also thelimits provided by this models. This way, will see which of these models of profit and lossaccount respond best to users’ needs.

References

. Gădău, L. (2014), Întocmirea, prezentarea şi utilizarea situaţiilor financiare. Studii şi

cercetări, Bucureşti: Editura Tribuna Economică.

. Iacob, P., P. (2014), Contabilitate financiară, ediţie actualizată, Bucureşti: Editura

Intelcredo.

. IASB, (2015), Standardele Internationale de Raportare Financiară, Bucureşti: Editura

CECCAR.

. *** IAS 1 „Presentation of Financial Statements”.

. *** The Finance Order no. 1802/2014 regarding the Approval of the Accounting

Regulations on the annual individual and consolidated financial statements with subsequent

amendments

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Published

2016-09-25

How to Cite

GADAU, L. (2016). THE ADAPTATION OF PROFIT AND LOSS ACCOUNT TO THE CURRENT REQUIREMENTS REPORTING OF THE PERFORMANCES. Annals of Spiru Haret University. Economic Series, 16(3), 93–102. https://doi.org/10.26458/1637

Issue

Section

ACADEMIA PAPERS