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ISSN: 2344 - 102X
ISSN-L: 2344 - 102X
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Volume 11, Number 1, Year 2023| 1. FINANCIAL-ACCOUNTING MODEL FOR TRANSFER PRICING BASED ON STANDARDISED ACCOUNTING POLICIES | 
Download | | Author(s): Lilia Grigoroi, Veronica Grosu, Anatol Melega | | DOI: 10.4316/EJAFB.2023.1111 | | Abstract: The globalisation of the world's economies and the internationalisation of companies are contributing to the development of new accounting and tax paradigms, which require a particular approach by regulators and multinationals. Increasing tax pressure on multinationals has led to the development of tax minimisation mechanisms through transfer pricing, a niche that has developed mainly due to the lack of tax regulation, i.e. clear tax and accounting policies for pricing transactions between related parties. The aim of this research is to develop a financial-accounting model for transfer pricing based on standardised accounting policies. The research methodology is oriented on the analysis of tax and accounting policies of 163 countries, which are affiliated to different economic and political groups. The results of the research are translated into the design of an econometric model of transfer pricing based on economic and financial information. The results of the research indicate that the method of transfer pricing depends on the economic strength of the affiliated entities that are based in the analysed state, and the dynamics of fiscal health is directly proportional to the overall development of economic security and the economic growth rate of the group. At the same time, it is observed that standardization is a method of optimising the calculation of transfer pricing if the distribution of the tax health index in dynamics at the level of the sample applying standardization is homogeneous. The proposed model helps to ensure that transfer pricing practices are consistent and transparent and that they comply with relevant laws and regulations. The limitations of the research are that the specific details of the model depend on the company's industry, its size and the nature of its operations. | | Keywords: Transfer Pricing; Accounting Policies; Fiscal Health; Financial-accounting Model |
| 2. GENERAL ASPECTS REGARDING THE AUDITING OF PROJECTS WITH NON-REIMBURSABLE FINANCING |
Download | | Author(s): Lucia Morosan - Danila | | DOI: 10.4316/EJAFB.2023.1112 | | Abstract: An audit of projects with non-reimbursable financing is an important part of ensuring that the funds granted by public and private organisations are used appropriately and efficiently. Audits help to detect fraud, waste, and abuse, thereby protecting the public trust in the grant process. Audits are supporting the financing organisations, because they provide assurance that the grantee is meeting the objectives of the project (as formulated in the application form and assumed by the financing contract), as well as providing a way to assess the effectiveness of the project. Audits ensure that the grant funds are being used for the purposes for which they were intended and that the grantee is meeting the requirements of the grant, and that the project with non-reimbursable financing is being administered properly. This article aims to present the procedures and standards to be followed by the auditor in carrying out the verification and certification of expenses financed from non-reimbursable funds, according to national, European, international and financier norms. The necessity and importance of the field resides in the fact that annually funds of billions of euros are granted in the form of non-reimbursable financing all over the world. | | Keywords: Audit Mission; Project Audit; Non-refundable Financing; Audit Report; Financial Audit |
| 3. EARNINGS PER SHARE - RELEVANT INDICATOR FOR MEASURING THE PERFORMANCE OF COMPANIES LISTED ON THE BUCHAREST STOCK EXCHANGE |
Download | | Author(s): Maria Grosu, Camelia - Catalina Mihalciuc | | DOI: 10.4316/EJAFB.2023.1113 | | Abstract: The supply of information that reflects the performance of entities is among the most important objectives of financial statements, so that by publishing them, entities meet the requirements of a diverse range of users. Regarding the measurement of financial performance, the benchmark or basis for calculating many performance indicators was considered profit, but over time, in the process of performance measurement, other relevant concepts made their way, one of these concepts being the result per action. Thus, for a more consistent analysis of the performance of the sampled entities (companies listed on the BSE), the main objective of this paper is the analysis of the result per share indicator, this result per share being analyzed according to the main field of activity. | | Keywords: Performance; Financial Performance; Global Performance; Bucharest Stock Exchange; Earnings Per Share |
| 4. ACCOUNTING TREATMENT OF DIRECT CONTRACT COSTS |
Download | | Author(s): Angela Popovici | | DOI: 10.4316/EJAFB.2023.1114 | | Abstract: This article examines the content and application of the provisions of the National Accounting Standard "Construction Contracts," the General Plan of Accounting Accounts, and other normative acts related to contractual cost accounting. The results presented mainly refer to issues related to direct contractual costs, such as the classification and characteristics of costs in construction contracts, the recognition, evaluation, documentation, accounting, and disclosure of information related to contractual costs in financial statements.
These aspects are the result of changes made in the National Accounting Standards and the General Plan of Accounting Accounts, which were developed based on Directive 2013/34/EU and the General Framework for Financial Reporting and came into effect on January 1, 2020.
To address the aforementioned issues and ensure proper implementation of national accounting regulations, it is recommended to review the composition of direct contractual costs in accordance with legislative provisions, specify the recognition and evaluation of contractual costs, include a separate section in the accounting policies of construction entities for primary documents and accounting registers established by the entity independently based on the specificity of the activity and information needs of users, properly account for direct contractual costs, and make changes to accounting programs to generalize the information needed to prepare financial statements and their explanatory notes. | | Keywords: Costs; Direct Contractual Costs; Evaluation; Financial Statements; Recognition |
| 5. APPLICABILITY AND USEFULNESS OF THE BENCHMARKING TOOL IN BUSINESS PRACTICE |
Download | | Author(s): Camelia - Catalina Mihalciuc, Diana Nicoreac | | DOI: 10.4316/EJAFB.2023.1115 | | Abstract: The best lesson a firm can learn to maximize profits and survive in the marketplace is to continually benchmark itself against its main competitors. Benchmarking is the comparison tool used in business, being a good support for choosing the best practices and solutions, this practice of using the benchmarking tool, being more and more advanced and adapted to new market trends. Thus, the research objective of the paper is, on the one hand, the analysis of specialized works that address the usefulness of the benchmarking concept, the report and the relationship that this concept has with feasibility studies, but also other aspects specific to the use of benchmarking in a transition economy and in a crisis situation, as well as the presentation of benchmarking indicators specific to different fields, and on the other hand, the applicability of the benchmarking tool on a company will be considered to analyze the efficiency and profitability obtained in relation to the methods and techniques applied for this purpose. | | Keywords: Strategies; Performance; Management Practice; Managerial Decision; Benchmarking; Benchmarking Techniques. |
| 6. REGULATING CRYPTOGRAPHIC FINANCIAL INSTRUMENTS FROM INTENT TO EXECUTION |
Download | | Author(s): Radu Bores, Ana - Maria Bores | | DOI: 10.4316/EJAFB.2023.1116 | | Abstract: Cryptocurrencies are a new class of financial assets that have the potential to disrupt the traditional financial system and provide the premises for a genuinely innovative framework for new economic and financial interactions. The characteristics and technical specifications of these technologies, while the source of innovation, are challenging elements for various regulators. The purpose of this paper is to identify the main regulatory concerns, i.e. what the regulatory intentions are, the philosophy behind them and, to the extent possible, to assess the effects, specifically, whether the intentions align with the manifestations in practice. We consider three of the most significant events with price impact in crypto in the past year and analyze what was the contribution of the crypto legal framework, as well as changes or proposals in the aftermath. | | Keywords: Cryptocurrency; Regulation; Taxation; Bitcoin. |
| 7. CSR, SUSTAINABILITY STRATEGY AND COMPANY PERFORMANCE |
Download | | Author(s): Liliana Scutaru | | DOI: 10.4316/EJAFB.2023.1117 | | Abstract: The paper aims to carry out an analysis of Romanian companies that approach their business through the lens of the concept of Corporate Social Responsibility (CSR). The research is carried out based on the estimated equation of the cubic regression model and its main objective is to determine if there are correlations between the results suggested by the cubic regression model and the CSR scores obtained by the companies, as well as to determine the trend of the related CSR scores for the next period of time. The analysis highlights the fact that high-performing companies, with a strong organizational culture created through years of experience, capable of permanently adopting new business strategies, based on innovative management, are increasingly performing. | | Keywords: CSR; Cubic Model; Sustainability Strategy; Performance; Romania. |
| 8. THEORETICAL APPROACH TO THE CONCEPTS OF ECONOMIC, ACCOUNTING AND MANAGERIAL PROFILE OF PRODUCTION SMEs |
Download | | Author(s): Corina Petrescu, Veronica Grosu, Simona - Maria Brinzaru | | DOI: 10.4316/EJAFB.2023.1118 | | Abstract: The image or overall performance of a company is determined by many internal and external factors that have a greater or lesser influence on it, depending on the specifics and characteristics of each company. It is therefore a priority for management and investors to be aware of the main factors impacting on a company's financial and overall performance so that decisions and development strategies are the most optimal in a given context. In this sense, this paper aims to analyse the components and determinants of the economic profile and performance of the managerial and accounting profile of companies, and their contribution to the creation and construction of their overall performance profile. The usefulness of the research results is that they can be of interest to different categories of stakeholders, depending on their role in the decision-making process and in the establishment of company development strategies. | | Keywords: Accounting Profile; Bibliometric Analysis; Economic Profile; Managerial Profile; Global Performance Profile. |
| 9. THE QUALITY OF SERVICES PROMOTED BY THE ACCOUNTANCY PROFESSION IN THE AGE OF DIGITALISATION AND ORGANISATIONAL PERFORMANCE |
Download | | Author(s): Mihaela Tulvinschi | | DOI: 10.4316/EJAFB.2023.1119 | | Abstract: Advances in technology over the past decade have made information technology part of the everyday work of accounting professionals. The aim of the research is to carry out a study highlighting the changes taking place in the accountancy profession due to digitisation. This aim can be achieved by meeting the following proposed objectives: O1: to conduct a literature review to identify research trends on digitisation in the accounting profession; O2: to highlight the positive and negative aspects of the digitisation of the accounting profession; O3: to determine the link between services promoted by the accounting profession and organisational performance. In a digitization-driven economy, the diversification and increased quality of services offered by accounting professionals is noticeable. They are no longer data holders, they provide value-added commentary and solutions to change for the better the financial situation and performance of firms, provide business advisory services, offer recommendations and solutions before things happen, and contribute to setting business strategy. | | Keywords: Digitisation; Accounting Profession; Organisational Performance. |
| 10. INVENTORY COST FLOW ASSUMPTIONS AND LIMITATIONS OF LIFO: A CASE STUDY OF A MANUFACTURING FIRM IN ALBANI |
Download | | Author(s): Kejsi Sulaj | | DOI: 10.4316/EJAFB.2023.11110 | | Abstract: Valuing the inventory at its cost has become a crucial need as a firm needs to know the cost it makes for the products made and sold and how the cost will have an impact on the firm's gross profit, tax to be paid, net income, and at the ending inventory during a specific accounting period. The two most known financial reporting standards, namely IFRS and U.S. GAAP, allow the use of an inventory cost flow assumption. This study mainly focuses on inventory cost flow assumptions. It is found, through the information collected, that the Albanian accounting system accepts Specific Identification (SI), First In, First Out (FIFO), and Weighted Average Cost (WAC) Flow Methods. At the same time, the most adopted inventory cost flow assumptions are the latter two, respectively. The second question emphasizes the reasons for the Last In, First Out (LIFO) cost flow assumption bans by IFRS and Albanian accounting standards. A case study of an actual manufacturing firm was used to conduct an empirical analysis and application of LIFO and WAC flow assumptions, resulting that the WAC flow assumption is more favorable to be used as it provides lower COGS, and a cost of the ending inventory, closer to the one with the current market prices. | | Keywords: Inventory Cost Flow Assumptions; FIFO; LIFO; WAC; Gross Profit. |
| 11. OIL DEMAND AND WORLD OIL PRICE DEVELOPMENTS DURING ECONOMIC CRISIS, MACRO-ECONOMETRIC ANALYSIS
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Download | | Author(s): Anamaria - Geanina Macovei | | DOI: 10.4316/EJAFB.2023.11111 | | Abstract: The economic crises have had a significant impact on oil demand and oil prices per barrel worldwide, with significant economic consequences and requiring appropriate adaptation strategies. Oil is one of the most important energy sources used in industry, transport, and production. Fluctuations in oil demand and oil prices have a significant impact on national and global economies. The aim of this study is to provide a time series analysis of the evolution of oil demand and the price of a barrel of oil as an important source of energy in the world that plays a role in the global industry. The proposed objectives to achieve this aim are O1: analysis of the influence of crises on global oil demand, O2: analysis of the influence of crises on global oil barrel prices, O3: time evolution of global oil demand, and O4: time evolution of global oil barrel prices. Analytical and forecasting methods will be used to achieve the proposed aim, using statistical data on oil demand over the period 2005-2022 and the average oil price per barrel over the period 1976-2022. The results of the study consist of macro-econometric models for the analysis of the evolution over time of the level of oil demand and the average price of a barrel of oil, focusing on the economic crises that occurred during the period analyzed. | | Keywords: Macro-econometric Model; Oil Demand; Oil Price Per Barrel; Economic Crisis. |
| 12. AN OUTLOOK OF FREIGHT ROAD TRANSPORT IN ROMANIA INDUSTRY |
Download | | Author(s): Cristina Gabriela Cosmulese | | DOI: 10.4316/EJAFB.2023.11112 | | Abstract: The road transport sector is dominated by SMEs. While some companies are definitely leading the way in terms of circularity, many others are still classic SMEs with linear business strategies. Traditional SMEs have new opportunities and challenges as they embrace the green shift. They require information, direction, and technical assistance to get started on the path to sustainability. Shippers have faced uncertainty in transferring goods as a result of the health crisis's limitations and bottlenecks. The supply-demand imbalance, as well as a shortage of long-distance and last-mile fulfillment service capacity, have disrupted logistics networks, impeding the expansion of the freight transport business. Because of the polluting character of this industry, this study focuses on sustainability in Romanian road transport SMEs. This study will look into which tactics are effective in assisting SMEs to become more sustainable. According to the research, the reason for corporations to engage in corporate sustainability may be competitiveness, legitimacy, and environmental responsibility. | | Keywords: SMEs; Road Freight Transport; Sustainability Strategies; Competitiveness; Legitimacy; Environmental Responsibility. |
| 13. INNOVATIVE APPROACHES FOR OPTIMIZING ANALYTICAL EVIDENCE AND MANAGING VALUE-ADDED TAX |
Download | | Author(s): Anatol Graur, Ruslan Harea, Igor Melnic | | DOI: 10.4316/EJAFB.2023.11113 | | Abstract: This publication aims to examine and solve problems related to the analytical structuring of value added tax information in the accounting information system. A connection is made between the analytical VAT record, the structure of the accounting sub-accounts and the fiscal registers of purchases and sales. The author also made a correlation between the information detailed in the accounting and that in the administrative database of the State Fiscal Service. Some proposals are made regarding the organization of the analytical record of VAT in relation to the fiscal system. The article provides concrete examples and detailed explanations on how information related to VAT should be structured and managed in accounting and in relation to the tax administration, for cases of accounting for advances received, VAT refunds from the budget, VAT surcharges, and reverse charging operations . The authors make a connection between the General Chart of Accounts and the VAT Return and analyze the method of correlating balances from accounts related to settlements with the budget and the resulting information from the tax report. | | Keywords: Accounts Analytical; Delivery Record Register; Import Services; Obviously Analytics; Procurement Record Register; Sales; Sub-accounts; Tax System; Taxation Reverse VAT Return; VAT. |
| 14. SOME CONSIDERATIONS ON MANAGEMENT ACCOUNTING WITHIN COMMERCIAL ENTITIES |
Download | | Author(s): Andrei Jizdan, Anatol Graur | | DOI: 10.4316/EJAFB.2023.11114 | | Abstract: Traditionally, management has been primarily concerned with the selection among various alternatives and the subsequent decision-making process. Underlying this approach is the reliance on information furnished by management accounting. The current study delves into the distinct characteristics of business entities' operations and the informational needs of managers. Central to this discussion is the role of management accounting, which aims to steer managers in the formulation and execution of strategies, budgets, forecasts, and the like. The methodological framework of this research adopts a theoretical perspective, utilizing conventional research methods such as analytical, comparative, synthetic, inferential analysis, and bibliometric assessment to gauge the efficacy of research within the examined domain. | | Keywords: Accounting Data; Decisions; Entities; Management Accounting; Trade. |
| 15. ACCOUNTING AND TAX TREATMENTS REGARDING THE INVENTORY OF ASSETS, EQUITY, AND LIABILITIES |
Download | | Author(s): Angela Popovici, Lidia Caus | | DOI: 10.4316/EJAFB.2023.11115 | | Abstract: Inventory is a process through which the factual, quantitative, or only quantitative value of elements such as assets, equity, and liabilities is determined, with the purpose of comparing them to the recorded situation in accounting. The aim of the research is to analyze and clarify the types of inventory, the specific procedures related to the preparation of inventory, the actual inventory, and the regularization of differences found during the inventory of assets, equity, and liabilities of entities, as well as their tax consequences. As a result of the research, for the proper application of the rules for accounting the results of inventory, it is recommended to: comply with all inventory stages in accordance with legislative provisions; comply with specific work and operations related to content, procedures to be followed, and documents to be prepared in the case of inventorying assets, equity, and liabilities; establish and correctly account for the results of the annual inventory in order to obtain accurate data that will be presented in the financial position and financial performance of the entity; study and correctly apply the tax consequences related to shortages and surpluses of goods, as well as the recovery of material damages according to the provisions of the Tax Code of the Republic of Moldova. | | Keywords: Inventory; Inventory Surpluses; Inventory Shortages; Inventory Register; Value Depreciation. |
| 16. DIGITIZATION OF THE ACCOUNTING PROFESSION - A BIBLIOMETRIC ANALYSIS |
Download | | Author(s): Marian Socoliuc, Iulia - Maria Tiganas | | DOI: 10.4316/EJAFB.2023.11116 | | Abstract: In an environment where digitization is implemented in any field at an accelerated pace, the issue of its implementation in the accounting field is significant. This digitization brings both advantages and opportunities in the accounting field, as well as disadvantages and even threats from the point of view of data security. The main objectives of this work are the following: Objective 1 - Deepening the subject of digitization of accounting, carrying out a review of the specialized literature; Objective 2 - Bibliometric analysis of specialized literature through the Web of Science platform with the theme "digitalization of accounting" and Objective 3 - Evaluation of research trends regarding the impact of digitization on the accounting profession. | | Keywords: Accounting Digitalization; Digitalization; Bibliometric Analysis. |
| 17. OPTIMISING EXPENDITURE IN HOSPITAL UNITS |
Download | | Author(s): Sorinel Toderas Siretean, Veronica Grosu, Anamaria - Geanina Macovei, Simona Maria Brinzaru | | DOI: 10.4316/EJAFB.2023.11117 | | Abstract: In today's healthcare context, effective management of hospital units is essential for controlling expenditure and ensuring the quality of healthcare services. The study explores how management practices influence the evolution of hospital expenditure, examining resource allocation strategies and the impact of technology and health policies on financial efficiency. The aim is to provide insights into the efficient use of scarce resources, thereby contributing to improving the quality of hospital care in a changing economic and social environment. | | Keywords: Efficient Management; Expenditure; Multiple Regression. |
| 18. STRATEGIC ANALYSIS ON THE ORGANISATION OF PUBLIC ADMINISTRATION IN ROMANIA AND EU COUNTRIES |
Download | | Author(s): Camelia Baesu | | DOI: 10.4316/EJAFB.2023.11118 | | Abstract: Over the last two decades, European nations have embarked on public administration reforms, facing distinct challenges and exhibiting significant diversity in their approaches. The complexity arises from the heterogeneity among Western European, Central, and Eastern European countries, impacting the outcomes of these reform initiatives. Understanding the variations in administrative systems, human resources structures, governance models, and service provisions across EU member states is crucial for comprehending the broader landscape of public administration reforms in Europe. This article aims to thoroughly investigate the multifaceted nature of public administration reforms in European countries. Additionally, the study aims to scrutinize the transformations witnessed in Romania's public administration landscape, particularly concerning privatization, decentralization, delegation of public services, management of public institutions, and reforms facilitated with the support of the European Commission, pre and post-EU accession. The research methodology incorporates a comprehensive review and synthesis of existing literature, reports, and studies pertaining to public administration reforms in Europe. Through a comparative analysis approach, the study categorizes European administrative systems based on historical, political, and organizational cultures, shedding light on distinctive traditions prevalent in different countries. The study unveils the complexity and diversity inherent in public administration reforms across European countries, highlights the challenges faced by nations in implementing reforms, emphasizing the implications of heterogeneity among EU Member States on the outcomes of these initiatives. | | Keywords: Public Administration; New Public Management; Public Services; Modern Governance. |
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