EUROPEAN JOURNAL OF ACCOUNTING, FINANCE & BUSINESS

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ISSN: 2344 - 102X

ISSN-L: 2344 - 102X



 

Content of Issue 24, Year 2020

1. Editorial
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Author(s): Veronica Grosu
Topic: -
Abstract: -
Keywords: -

2. ANALYSIS OF THE INFLUENCE OF THE AVERAGE MONTHLY CONTRIBUTION PER PARTICIPANT OF THE PRIVATELY MANAGED MANDATORY PENSION FUND BRD
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Author(s): Constantin Durac
Topic: General Accounting
Abstract: Starting with the first month of 2018, policy makers have taken measures to reduce the percentage of contributions to privately administered mandatory pension funds (Pillar II) in Romania. In this way, it decreased from 5.1%, as it was at the end of 2017, to 3.75%, starting with January 2018, which negatively affected the evolution of the average contribution / participant to the pension funds from Pillar II. This is why I propose an analysis through a unifactorial model of regression of the influence of the average contribution to a pension fund on the VUAN and thus on the pension that future retirees will receive. from Pillar II. I will try to obtain an econometric model that can be used to make forecasts using specialized software and statistical data published by the Financial Supervisory Authority from 2010-2019.
Keywords: Voluntary Pension Funds; Pilar II; Econometric Model; Linear Regression; Net Asset Value

3. ANALYSIS OF THE IDEA OF SUSTAINABILITY IN RELATION TO THE ECONOMIC, SOCIAL AND EDUCATIONAL DIMENSIONS OF BUSINESS ORGANIZATIONS. FROM THE SUSTAINABILITY OF THE PRESENT TO THE SUSTAINABILITY OF THE FUTURE
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Author(s): Marius - Costel Esi
Topic: Business
Abstract: The purpose of this paper is to analyze to what extent we can discuss social and economic sustainability in the context of the contemporary society. We are considering, on the one hand, the analysis of the social-educational dimension in relation to the way of implementing sustainability at the level of the business organizations. On the other hand, we aim towards a proper explanation of what extent the axiomatic core (values, customs, principles, etc.) of a business organization can contribute to its development/growth from an economic standpoint. Therefore, our analysis seeks first of all to deal with the ways in which an epistemic and practical correspondence between the idea of sustainability and the economic, social and educational dimensions of business organizations is possible. Secondly, we want to show that an exhaustive analysis of the idea of sustainability in relation to these dimensions implies a reassessment by the decision-makers (stakeholders) of what the organizational management, organizational culture, organizational behavior and the education for the future mean.
Keywords: Business Organizations; Economic Sustainability; Educational Sustainability; Organizational Values; Social Sustainability

4. THE EVOLUTION OF AGRICULTURE AND ITS POSITION IN THE ROMANIAN ECONOMY
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Author(s): Camelia - Catalina Mihalciuc
Topic: General Accounting
Abstract: In the current economic context, it is important to be aware that agriculture is the only branch of the economy that provides us with most of the food and raw materials for industry. Therefore, the purpose of the paper is to highlight this branch of the economy, from the perspective of its importance and role in the economy of our country, the objective of the paper being to present the evolution of agriculture. In order to achieve this goal, the methodological approach aims first at a brief foray into the history of agriculture by analyzing both written sources and archaeological discoveries, and then considered determining the role and place of the agricultural sector in Romania's economy based on statistical research.
Keywords: Agriculture, CAEN Code, Romanian Economy, CON103I Matrix, CON103G Matrix

5. DIFFICULTIES OF THE IMPOSITION MECHANISM OF WEALTH TAX
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Author(s): Roman Vieru, Liliana Lazari
Topic: General Accounting
Abstract: This article examines the emergence and evolution of wealth tax, as well as the issues related to the applicability of this taxation mechanism. At the same time, we will make an association of the application of this taxation instrument in the Republic of Moldova with the best-known practices of other countries, as well as the tendency to harmonize and adapt the need for this mechanism to nowadays realities. The importance of studying the application of the imposition mechanism of wealth tax in the Republic of Moldova results from the act of signing of the European Union Association Agreement and the tendency to align the country with international standards and practices. In the context of the above mentioned, tax legislation requires a revision and adjustment to international practices, taking into account the varied and long experience of applying this tax instrument by countries that have gone through the same stages leading to the harmonization of imposition system that today is applied in fiscal system of the Republic of Moldova. The research on wealth tax in the Republic of Moldova in terms of its evolution and application is to be carried out through the combined application of classical research methods: the method of deduction and analysis, as well as the historical research method, necessary to investigate the historical background that may be the basis for explaining current decisions, can provide information to facilitate understanding of taxation mechanism. In the final part of the research, the opportunity and the need of taking into consideration international practices in order to continue the harmonization of the fiscal legislation of the Republic of Moldova regarding the imposition of wealth tax, its analysis from the perspective of two criteria: the efficiency and the ethical criteria, is established.
Keywords: Subject Of Taxation; Tax Rate; Object Of Taxation; Taxpayer; Wealth Tax; Luxury Tax

6. THE MECHANISMS FOR ESTIMATIMG THE INTRA-COMMUNITY TAX FRAUD
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Author(s): Cristina Gabriela Cosmulese
Topic: General Accounting
Abstract: In the current economic and social context, the difficulties induced by the economic crisis, respectively, the public finance crisis, the black economy and the high level of evasion, the diversification of means / possibilities to evade the fulfillment of legal obligations, the need to fulfill obligations by joining various supranational bodies, have led over time to a series of debates about the interaction between accounting and taxation, the outcome and the elements influenced by this interaction. The purpose of this article is to analyze, at a theoretical level, how tax evasion can be generated by non-compliant economic practices related to intra-Community operations.
Keywords: Tax Evasion, Fraud Mechanisms, Method, Corporation And Personal Income Tax

7. EUROPEAN CIRCULAR ECONOMY - A REAL MODEL FOR THE SUSTAINABLE DEVELOPMENT OF THE ECONOMY OF THE REPUBLIC OF MOLDOVA
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Author(s): Victoria Ganea, Iulita Birca
Topic: General Accounting
Abstract: The actuality of this study is to identify the most effective ways to overcome the resource deficit, in order to reduce the pressure on the environment, ensure sustainable economic growth and improve the living standards of the population. By analyzing the postulates underlying the development of the circular economy from an European perspective, there is outlined the aim to identify the best possibilities for their application in the national economy of the Republic of Moldova, so that it was possible to highlight certain solutions in overcoming impediments in the researched field, some of which are: moderate use of resources, socially responsible consumption, waste-free production, design of organic products and their reuse. Adopting the principles of the circular economy and developing related innovative business models, introducing new closed-cycle production technologies such as the donut model, involve not only timely and consistent modernization of legal regulation in the country and the creation of appropriate framework conditions for business, but also require new qualitative approaches of economic entities.
Keywords: Circular Economy; Globalization; Sustainable Development; Green Economy; Sustainability; Environmental Protection

8. EFFECTS OF THE IMPLEMENTATION OF IFRS 16 ON FINANCIAL STATEMENTS
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Author(s): Veronica Grosu
Topic: General Accounting
Abstract: The purpose of this paper is to analyze the effects of the implementation of IFRS 16 leasing on the financial statements of reporting entities, given that the International Accounting Standard IFRS 16 eliminates the difference between operational leasing and financial leasing by unifying the accounting treatment of the user who, in both cases, records now the right of use and related debts.
Keywords: IFRS 16, Financial Statements, Operational Leasing, Financial Leasing, Contract

9. ANALYSIS ON THE CAUSALITY RELATIONSHIP BETWEEN INVESTMENTS AND THE CAPITAL'S MARGINAL COST
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Author(s): Irina Cibotariu
Topic: General Accounting
Abstract: Capital's cost is the result of two kinds of behaviours, namely the entrepreneur's behaviour, on the one hand, and the investor's behaviour. These two types of behaviours have a common background, namely maximizing the value of the business entity. The business entity itself can be considered as the very expression of the financing costs which are part of the optimization process of its financial strategy. The diversity of the investment options requires the assignment of those financial resources which are based on estimating the entity's value which refers to the conversion of the future incomes into the present turnover of the business as such. Thus, there is an occasional cost from the point of view of the investors, whereas for the users, there is an average cost involved due to the fact that one needs to take into account the existence of the financial structure itself which is responsible for the existence of both the equity and the loan capital.
Keywords: Capital's Cost, Investments, Marginal Cost; Profitability, Investors, Financial Structure, Loan Capital, Financing Decision

10. PROBLEMS OF COMPETITIVE DEVELOPMENT OF INDUSTRY IN UKRAINE
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Author(s): Viktoriya Marhasova, Nadiia Shmygol, Olga Galtsova, Oleksiy Solovyov, Artur Zhavoronok
Topic: General Accounting
Abstract: In the work, the study of the factors of sectoral competitiveness has been further developed on the basis of modern scientific experience, in contrast to the existing ones, it goes out of the directions of assessing the market position, socio-economic situation in the region, property status and financial well-being of business entities. In the framework of this study, based on the accumulated scientific experience, many factors were formed to determine the industry's competitive position and an analysis of the current state of Ukrainian industry in certain areas of assessment.
Keywords: Industry, Economy, Market, Competition, Development

11. MEDIATION ON MATTERS ARISING FROM LABOUR RELATIONS. THE CHINESE AND EUROPEAN PERSPECTIVE
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Author(s): Rafa? Blicharz, Dong Yan
Topic: General Accounting
Abstract: The article is devoted to the issue of mediation on matters arising from labour relations from Chinese and European perspective. It provides historical context of mediation on matters arising from labour cases in China, shows principles, institutions, mechanisms and proceedings concerning labour cases specification on mediation. The second part of the article is devoted to European regulation on the same aspects of mediation rising from labour cases.
Keywords: Mediation In China; Mediation Principles; Mediation Proceedings; Types Of Mediation In China; Labour Relations

12. DIGITALISATION OF THE BANKING SYSTEM AT EU LEVEL - QUANTITATIVE APPROACHES
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Author(s): Anisoara Niculina Apetri, Diana Tira
Topic: Banking
Abstract: Digitalization has already influenced many industries, including the banking industry. Thus, there is an urgent need to research the implications of digitalization on the banking industry, which is constantly dynamic and dependent on IT technologies. Digitalization changes the classic banking, causing the reconfiguration of the territorial networks of credit institutions, in a situation in which the population will be more and more open to new technologies. As a result, the present research has as a pillar for research the quantitative analysis of the implications of digitalization on the current banking industry in the European Union.
Keywords: Banking System, Classic Banking, DESI Index, Digitalisation

13. ANALYSIS OF THE RESULT OF THE FINANCIAL YEAR AND OF THE EARNINGS PER SHARE
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Author(s): Anatol Melega, Vasilica - Monica Ancuta (arsene)
Topic: General Accounting
Abstract: The issue of management and administration of the entity, regardless of the object of activity and the proposed purpose is complex. The assessment of differences in performance and financial position depends on the nature of the entity, the system of instruments used in wealth management. In order to withstand the competitive environment, any entity needs information, without which the decision-making process through which the entity is managed could not take place. To obtain this information, an analysis of the annual financial statements is required to assess the entity's financial position and performance. The information is useful both for the entity that analyzes the financial statements and for suppliers, customers, potential investors, financial creditors and anyone who wants to know information about the entity. This paper aims to present the main theoretical and practical aspects related to the delimitation and analysis of the result of the financial year and, implicitly, of the earnings per share.
Keywords: Accounting; Enterprise Performance; Earnings Per Share

14. ECONOMETRIC ANALYSIS OF THE EVOLUTION OF VAT IN ROMANIA AND OF THE DIRECTIONS TO FOLLOW FOR A SUSTAINABLE ECONOMY
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Author(s): Anamaria - Geanina Macovei, Mihaela Tulvinschi
Topic: General Accounting
Abstract: The importance of efficient value added tax collection is vital for obtaining public revenues close to the level needed to finance public investment in infrastructure, health and education. In this context, the VAT rate is important because a change in it, regardless of the meaning of the change, can generate both positive and negative effects on the economic environment and budget revenues. The purpose of the article is the analysis of the evolution of the standard VAT rate in Romania in the period 1.07.1993 - 31.12.2020, based on the estimated equation of the cubic regression model. The research aims to observe whether there is a correlation between the results suggested by the cubic regression model and the decisions that have been applied or could be applied in the framework of VAT policy.
Keywords: VAT, Cubic Model

15. BANKRUPTCY RISK - CONCEPTS AND APPROACHES IN THE ECONOMIC LITERATURE
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Author(s): Veronica Grosu, Ancuta - Anisia Chelba
Topic: General Accounting
Abstract: In a competitive economy, the development of a business is closely linked to the occurrence and manifestation of any type of risk. The risk consists in the occurrence of a future event, probably, but uncertain which results in a damage or loss manifested in the form of a company's inability to meet its objectives. The main objective of this article is to provide a realistic and useful introduction to addressing the concept and definitions of bankruptcy risk in the literature. This topic was chosen because we believe that only by applying a bankruptcy risk assessment model will economic entities know the real financial situation they face at a given time, thus having the opportunity to rethink the decision-making process.
Keywords: Bankruptcty Risk, Prediction Model, Financial Difficulty

16. THEORIES AND PHILOSOPHIES OF CORPORATE GOVERNANCE
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Author(s): Cristina Gabriela Cosmulese
Topic: General Accounting
Abstract: Taking into account the complexity of economic and financial events taking place today, we can say that the process of globalization of markets is not enough to support the coveted economic and socio-cultural development, but requires the globalization of cultures, their integration into evolution and development. mankind. Unfortunately, global pressures can motivate managers to manipulate revenue and delay or hide not-so-positive news. In this sense, financial accounting is a privileged information tool for governing relations with financial partners. It provides the necessary information to manage possible conflicts of interest, related to the distribution of wealth created by those transactions. The paper wants to highlight the importance of corporate governance characteristics in expressing the performance determined with the help of accounting data.
Keywords: Corporate Governance, Financial Performance, Theories, Developing Country

17. THE ROLE OF CIRCULAR ECONOMY ON GLOBAL COMPETITIVENESS
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Author(s): Dumitrita Nuca
Topic: General Accounting
Abstract: Lately, society is increasingly concerned about the threat of a possible resource crisis, which could affect the whole globe, and the economic models developed have not always considering the characteristic of resource depletion. Thus, the transition to another type of economy - the circular economy - was designed to cover the problems that society is currently facing and that it could have in the future due to massive pollution and climate change worldwide. In this sense, the purpose of this paper is to clarify the notion of circular economy, as well as its benefits in order to create a sustainable and competitive system at the same time, because these are the key points in achieving success.
Keywords: Circular Economy; Sustainability; Development; Competitiveness

18. THE ROLE OF AGRICULTURE IN THE ROMANIAN ECONOMY
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Author(s): Camelia - Catalina Mihalciuc
Topic: General Accounting
Abstract: In the current economic context, it is important to be aware that agriculture is the only branch of the economy that provides us with most of the food and raw materials for industry. Therefore, the purpose of the paper is to highlight this branch of the economy, from the perspective of its importance and role in the economy of our country, the objective of the paper being to present the evolution of agriculture. In order to achieve this goal, the methodological approach aims first at a brief foray into the history of agriculture by analyzing both written sources and archaeological discoveries, and then considered determining the role and place of the agricultural sector in Romania's economy based on statistical research.
Keywords: Agriculture, CAEN Code, Romanian Economy, CON103I Matrix, CON103G Matrix

19. SOCIAL PROTECTION IN ROMANIA. PROTECTING CITIZENS OR ELECTORAL ALMS?
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Author(s): Gheorghe Morosan
Topic: General Accounting
Abstract: Social protection is necessary in the context of the existence of a larger or smaller part of the population that does not have an adequate standard of living. The study was conducted based on data collected from the National Institute of Statistics in 2015-2018 and existing legislation in this field. The economic and social life in Romania shows us that too often the governing parties neglect this aspect and use social protection more as an electoral weapon. Based on the study of legislation and statistical data, we will demonstrate that the social protection of disadvantaged groups is of less interest to the ruling parties and the policies pursued are not aimed at improving living conditions but using public money for this field as a tool to earn or maintain As proof is the data presented which shows an ever-changing, contradictory, always postponed and unenforced legislation. The data collected show that despite the fact that money has been spent, increasing during the analyzed period, the efficiency of their spending is minimal, no progress has been made, we are always the tail of EU countries on indicators relevant to our existence: poverty rate, health status, life expectancy. The present study is structured as follows: in the first section the importance of social protection was presented, in the second section the working methods were shown, in the next section the relevant legislation for this field was presented, further the fourth section provides the basis for data, and the results and conclusions of the study are presented in the last chapter.
Keywords: Social Protection, Social Insurance, Social Benefits, Social Services, Social Reference Indicator

20. MECHANISM OF THE FINANCIAL AND ECONOMIC SECURITY OF THE CORE PORT ACTIVITY ENTERPRISES
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Author(s): Olga Koretska
Topic: General Accounting
Abstract: The analysis of financial and economic security (FES) issues of the core port activity enterprises (CPAE), which provide services for the maintenance of sea vessels, cargo, passengers and other services in seaports, assumes particular importance due to the adoption of the Law "On Seaports of Ukraine" and the Law "On Concessions". The article confirms the relevance and necessity for studying the maintenance of financial and economic activity of the core port activity enterprises and the mechanism of the FES. It was studied its role in the financial and economic security, there were considered the functions and principles affecting the level of FES, tasks and requirements for the mechanism.
Keywords: Analysis Of Financial And Economic Security, Business Entities, Government Agencies, Provision

21. ASPECTS REGARDING BASE EROSION AND PROFIT SHIFTING IN ROMANIA
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Author(s): Marius - Sorin Ciubotariu, Corina Petrescu
Topic: General Accounting
Abstract: In a world characterized by globalism and initiatives of harmonization in almost every aspect of the social and economic life, showing interest, support and credibility towards the international common struggle against base erosion and profit shifting (BEPS) phenomenon has been seen like a duty by the Romanian government, which in June 2016 approved the country's adherence to the BEPS Implementation Forum. This huge step involved Romania in an international complex system of communication, exchange of information and strategical planning, which includes many other countries from all over the globe, every one of them having their irreplaceable role in this entire process, because an extra country that accessed this system, means more power and resources in the global fight against BEPS. What are the steps to be made and what are the legal and procedural implications of Romania adhering to the BEPS Implementation Forum is what this article is going to focus on, finding out the progress made until now and the domains with deficiency that need improvement, so that everything to be according to the international demands in the field.
Keywords: BEPS, Tax Practices And Policies, OECD, BEPS Action Plan, Legal Framework

22. AN APPROACH FOR ASSESSING THE BUSINESS ENTITY'S FINANCIAL POTENTIAL
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Author(s): Olha Chuniak
Topic: General Accounting
Abstract: The paper examines the issues related to assessing the level of economic entities' financial potential. Approaches to determining the essential content of the financial potential category are analyzed, followed by its consideration as the ability of the business entity to rational and efficient use of financial resources. The main approaches to assessing the level of financial potential are considered, their main shortcomings are identified, which mainly consist in insufficient substantiation of defining the boundaries of levels. It is established that one of the most common approaches to solving the problem of financial potential assessment is the use of comprehensive index assessment technology based on financial ratios. The main methods for data normalization and convolution of initial indicators are given. The paper considers the approach to design a financial potential composite index of the enterprise, which is based on the normalization of the initial indicators by comparing them with the normative values with their subsequent convolution into a single measure using the distance method. A verbal scale for determining the levels of financial potential is proposed. A new approach to the interpretation of calculation results has been developed by defining and substantiating the bounds of the composite index according to each level of financial potential, which is based on the use of the Harrington desirability scale. Practical testing of the approaches proposed is executed for PJSC "Khmilnyk garment factory "Lileia" according to the data of 2017-2019. Based on the calculations, the level of financial potential is identified as "normal", which allows us to conclude that the company's financial resources are sufficient for doing business.
Keywords: Business Entities, Financial Potential, Comprehensive Index Assessment Technology, Composite Index, Harrington Scale

23. ECONOMIC SUBSTANTIATION OF TECHNOLOGY OF RESEARCH OF FUEL SYSTEMS OF SHIP DIESELS
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Author(s): Konstantin Shaposhnykov, Mykola Slobodianiuk
Topic: General Accounting
Abstract: The article is devoted to substantiation of technology of research of fuel systems of marine diesels. The necessity of economic estimation of technologies of control over work of fuel system of marine diesel is substantiated. According to the literature, the need to use a combination of economic and technical methods in research has been clarified. Using the problem-target approach and economic-methodical components, the technology of development of the control program taking into account economic components is offered. As a result of structuring the purpose of control over the high-pressure fuel system, technical and economic indicators are determined taking into account the sequence of interrelated categories "goal"-"activity"-"scenario"-"means"-"result". The mathematical apparatus of solving the problem of ensuring the reliability and efficiency of the marine diesel fuel system, with further assessment of economic costs during the implementation of the control program.
Keywords: Economic Justification, Research Technology, Economic And Technical Problems, Problem-based Approach, Control Program, Alternative Scenarios, Economic Costs, Economic Potential.

 
     
     
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