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

Abstract

The financial performance - a very complex notion and high informational load for
users of accounting information is reflected best by the financial statements, the profit and
loss account and the situation of equity variations. The last situation can be presented as a
statement of comprehensive income, including beside the result of profit and loss account, the
gains and losses directly recognized in equities without passing through the profit and loss
account.
The development of increasingly complex activities emphasizes the utility, the
necessity of the profit and loss account in the financial reporting by increasing the interest in
the enterprise performance, especially for the dynamic information that this situation can
provide.
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 the
achievement of its forecasts.
In this paper we propose to approach the profit and loss account in view of two
representative referential, namely in terms of IAS 1 standard “The preparation and
presentation of the financial statements” and the national regulation, the Finance Order no.
1802/2014 regarding the Approval of the Accounting Regulations on the annual individual
and consolidated financial statements, aiming to emphasize the advantages, but also the
limits provided by this models. This way, will see which of these models of profit and loss
account respond best to users’ needs.