Theoretical and Applied Economics
No. 5 / 2006 (500)
Financial Accounting Constitution or its Referential Matrix
Niculae Feleaga
Academia de Studii Economice Bucuresti
Abstract. Using a simplified approach it may be stated that the financial accounting theoretical framework is structured on three levels. At the first level, reference is made to the accounting objectives. These objectives are fundamental for the theoretical framework. At the second level, we find the accounting information characteristics and explicit mentions about the headings of financial statements. The mentioned characteristics of accounting information represent the basic issues for ensuring its utility. The headings represent the main categories of elements disclosed in the financial statements, like assets and liabilities – these two elements’ definitions brought radical changes both in the accounting thinking and practices. Overall, the second level’s components represent the basis for building the practice directives as a matter of recognition (identification) and measurement (evaluation). Inside the third level, the recognition and measurement directives are being detailed, which will be further used by the accounting specialist in order to identify and apply the accounting standards. These two directives enclose postulates, principles and restrictions. Such specifications prove to be useful whenever precise answers must be given to relative financial information issues. Usually, it is accepted that the theoretical framework, also called the accounting framework is the standard-setting, metaphorically speaking is actually the constitution of financial accounting, or in other words, its reference matrix.
Keywords: relevance; reliability; assets; liabilities; equity.
Contents
- Deciziile publice si cultura
Ioan Talpos
Bogdan Dima
Cosmin Enache
Mihai Mutascu
- Optimal Pareto Allocations
and Public Goods Production Financing
Daniela Marinescu
Dumitru Marin
- Financial Accounting Constitution
or its Referential Matrix
Liliana Feleaga
Niculae Feleaga
- Credit Risk Quantitative
Evaluation in the Basel II Perspective
Nicolae Dardac
Bogdan Moinescu
-
Economia subterana in Romania
Costantin Roman
Aureliana Geta Roman
Cleopatra Sendroiu
- Research
about Quality Life in Romania
Constantin Anghelache
Alexandru Isaic-Maniu
Constantin Mitrut
Vergil Voineagu
- Dashboard and Firms
Performance Optimization Using
Piloting Indicators
Sorinel Capusneanu
-
Hegemony and Stability of the International
Economy
Gheorghe Gruia
- Accountancy Against Financial
Engineering Challenges
Cicilia Ionescu