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ISSN: 2344 - 102X
ISSN-L: 2344 - 102X
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Volume 12, Number 1, Year 2024
| 2. CONNECTING THE AUDIT ACTIVITY IN THE REPUBLIC MOLDOVA TO THE NEW QUALITY REQUIREMENTS | 
Download | | Author(s): Anatolie Iachimovschi, Svetlana Mihaila | | DOI: 10.4316/EJAFB.2024.12101 | | Abstract: Reforms in the audit sector in the Republic of Moldova have been marked by a series of regulatory developments in line with international regulations. The current efforts of domestic audit firms to meet the requirements of professional standards in the field, which have been significantly revised in recent years in terms of quality assurance, are a challenge for the business environment. And the traditional linear approach to the concept of internal control in audit can no longer meet today's requirements of a modern quality system. This research aims at highlighting directions for improvement of audit activity in the Republic of Moldova under the new quality requirements. The investigations in question constitute empirical research in the context of the modernization of domestic audit by examining the performance of engagements in line with current audit quality requirements. The research results underline the importance of regulatory reforms to increase the prestige and professionalism of domestic auditing by linking it to international standards. | | Keywords: Audit Activity; Audit Entity; Auditing Standards; Normative Framework; Professionalism; Quality Requirements. |
| 3. THE IMPACT OF IFRS 9 ON THE GREEK SYSTEMIC BANKS |
Download | | Author(s): Gerasimos Rompotis, Dimitris Balios | | DOI: 10.4316/EJAFB.2024.12102 | | Abstract: This paper examines the impact of IFRS 9 - Financial Instruments on the four systemic banks in Greece upon the transition to the new accounting standard on January 1, 2018. The implementation of the new standard resulted in an average increase in the impairment of financial assets by 1.38 billion euros (or 11%) at the group level and 1.30 billion euros (or 12%) at the bank level. In addition, the impact on average equity on 1/1/2018 was a decrease of 1.38 billion euros (or 16%) at the group level and 1.34 billion euros (or 17%) at the bank level. The impact on the regulatory capital was an average decrease of 0.55% (0.45%) at the group (bank) level, based on the transitional arrangements, or a decrease of 3.84% (3.91%) at the group (bank) level on a fully-load basis. Finally, some key financial leverage ratios were significantly affected by the new standard. | | Keywords: Accounting Standards, IFRS 9, Financial Assets, Expected Credit Loss, Banks. |
| 4. ASSESSING THE RESILIENCE OF TRANSPORT INDUSTRY FIRMS IN TIMES OF CRISIS |
Download | | Author(s): Veronica Grosu, Corina Petrescu, Anatol Melega, Florin Brinzei | | DOI: 10.4316/EJAFB.2024.12103 | | Abstract: The recent overlapping crises have had a significant impact on the global economy, causing major changes within many industries, reconfiguring virtually entire businesses. In this context, resilience has become a crucial concept for most companies, representing an indicator that assesses their ability to face the challenges of crises and recover. The aim of the research is to assess the resilience and strategies adopted by companies in the European transport industry to maintain their long-term sustainability. The research focuses on the analysis of performance indicators of 566 companies in the European transport industry for the period of 2014-2022. The research results highlight the challenges faced by the sample in the context of overlapping crises, highlighting the need to implement robust strategies to ensure sustainable growth and long-term success in a volatile and unpredictable economic environment. | | Keywords: Resilience; Overlapping Crises; Sustainability; Logistics; Transport. |
| 5. THE RELEVANCE OF PERFORMANCE INDICATORS IN THE DECISION-MAKING PROCESS |
Download | | Author(s): Vilena Tiscenco, Galina Badicu, Svetlana Mihaila | | DOI: 10.4316/EJAFB.2024.12104 | | Abstract: Financial performance often does not paint the complete picture of profit, and a sole focus on it would lead to the neglect of essential aspects for both the entity and society as a whole. Solely concentrating on a single indicator would be inadequate, especially considering the evolutionary era we are in and the opportunities and conditions (standards) intentionally followed to keep pace with desired growth rates and to avoid irresponsible practices and the associated risks they may generate. Additionally, any managerial decision must be based on a thorough understanding of the situation, which is not possible without complex investigations into financial performance that elucidate performance measurement criteria, evaluation indicators, and calculation methods. The purpose of this article is to highlight the importance of performance indicators in the decision-making process. This scientific endeavor is based on information derived from national and international specialized literature and practice. | | Keywords: Financial Performance, Financial Performance Indicators, Financial Result, Decision-making Process. |
| 6. CONVERGENCE MATRIX OF IFRS METHODOLOGY AND SEEA FOR THE RECOGNITION OF MINERAL RESOURCES IN THE CONTEXT OF TRANSITIONING TO A SUSTAINABLE ACCOUNTING AND REPORTING MODEL: LIMITATIONS AND OPPORTUNITIES OF MOLDOVA'S PRACTICE |
Download | | Author(s): Irina Golochalova | | DOI: 10.4316/EJAFB.2024.12105 | | Abstract: The objective is to develop a Matrix of convergence indicators for the IFRS methodology and the SEEA concept for the recognition of mineral resources in the financial statements, the format of which adheres to the socio-economic model. In order to achieve this goal, the hypotheses were put forward and substantiated. The study identified a set of indicators characterizing the degree of correlation between IFRS and SEEA, developed a convergence matrix for the two frameworks, demonstrating a high degree of connection between them with respect to the recognition of mineral resources. The proposed matrix is a conceptual basis for the calculation of the En-contribution of business to the realization of sustainable development goals. The application of IFRS methodology, which meets the goals of sustainable development and which represents the base to form a socio-economic model of accounting and financial reporting, should be considered as a promising direction for recognizing mineral resources and natural capital as a source of their origin. The assessment model of mineral resources adopted at the legislative level in Republic of Moldova leads to an asymmetric effect of the contribution of real sector enterprises related to the use of mineral resources, to the development of the national economy. | | Keywords: Methodology Of Accounting, SEEA Concept, Measurement Of Natural Capital. |
| 7. THE IMPORTANCE OF THE FINANCIAL AUDIT IN THE IDENTIFICATION OF FRAUD AND ERRORS RECORDED BY COMPANIES |
Download | | Author(s): Claudia - Elena Grigoras- Ichim, Otilia - Maria Bordeianu, Lucia Morosan- Danila | | DOI: 10.4316/EJAFB.2024.12106 | | Abstract: Increasing concerns regarding the transparency and correctness of financial reporting in the current global economic context underline the importance of financial audits in identifying fraud and errors recorded by companies. The purpose of the paper is to examine the issues related to fraud and errors from the perspective of financial audits in the national and world economic reality. The motivation for this scientific approach resides in identifying elements and vulnerabilities at the company level that can influence the auditor's ability to issue his opinion within a financial audit mission. By identifying and eliminating these elements, the aim is to increase the trust of end users in financial accounting information and the work carried out by financial auditors. The paper emphasises the need for auditors to exercise professional scepticism and apply effective internal control to prevent and detect fraud and error. Implementing fraud risk management strategies is also highlighted, including promoting an organisational culture based on integrity and transparency. The presented research results include improving internal audit and control systems, increasing awareness of fraud and error risks, and promoting corporate governance practices that better protect stakeholders' interests. The importance of the theme, the purpose of the work and the intended results underline the crucial role of the financial audit in ensuring the integrity and transparency of financial information, thus contributing to stability and confidence in the business environment. | | Keywords: Financial Audit; Fraud; Error; Company Transparency |
| 8. THE UTILITY OF ACCOUNTING POLICIES FOR FINANCIAL REPORTING |
Download | | Author(s): Vilena Tiscenco, Galina Badicu | | DOI: 10.4316/EJAFB.2024.12107 | | Abstract: In an increasingly globalized and complex world, the efficient management of the activity of economic entities becomes a vital necessity for achieving success and competitiveness in the market. Accounting policies are a crucial aspect of this management, as they directly influence how financial information is presented, interpreted and used within organizations. To ensure efficient management of the activity, economic entities must adopt the appropriate accounting policies that correctly reflect their financial situation and performance. The refinement of these accounting policies becomes essential in the context of a continuously evolving economic environment and increasingly rigorous requirements of users of financial information. It has already been proven that the very presentation of business transactions can be done in completely different ways, leading to varied financial results. Having a considerable source of bibliographic sources and international normative acts, a qualitative analysis can be carried out regarding the utility of accounting policies for financial reporting. | | Keywords: Accounting Policies; Financial Position; Financial Results; Financial Statements; Users Of Financial Statements. |
| 9. ANALYSIS OF TAX EVASION IN THE NORTH EAST REGION OF ROMANIA |
Download | | Author(s): Lucia Morosan- Danila, Claudia - Elena Grigoras- Ichim | | DOI: 10.4316/EJAFB.2024.12108 | | Abstract: Tax evasion is a critical issue threatening economic stability and tax fairness globally, including in Romania. This study focuses on tax evasion within Romania's North-East Region, which is crucial due to its border proximity with the EU, Ukraine, and the Republic of Moldova. It aims to clarify tax evasion concepts, determine its causes, examine the accounting practices involved in evasion and fraud, and assess the role of accounting information in addressing this widespread challenge. Through a thorough methodology that encompasses the analysis, debate, and synthesis of data from Romanian and international sources, statistical reports, and specific studies on tax evasion, the paper provides a detailed exploration of the theoretical and empirical facets of tax evasion. It notably investigates tax evasion's extent at national and regional scales, offering a unique perspective on the current business climate. The findings highlight key trends and statistics concerning tax inspection and anti-fraud efforts in the North-East, particularly considering the COVID-19 pandemic's effects, which led to a decrease in tax audits in 2020. This situation points to the necessity for new enforcement approaches. However, the study observes signs of improvement in compliance rates and inspection activities in subsequent years. It stresses the importance of digitalisation, legal reforms, and increased transparency for effective tax evasion combat. The paper presents insightful recommendations for policymakers and tax authorities to boost compliance and reduce evasion, emphasising the need to tackle tax evasion for the region's economic well-being and broader tax justice. | | Keywords: Tax Evasion, Romania, North-East Region, Tax Compliance, Anti-fraud Activities. |
| 10. USE OF CORPORATE INCOME TAX IN ACHIEVING ECONOMIC GROWTH OBJECTIVES. THE CASE OF THE REPUBLIC OF MOLDOVA |
Download | | Author(s): Dorel Noroc | | DOI: 10.4316/EJAFB.2024.12109 | | Abstract: The paper contains the author's analysis and research on using the corporate income tax for economic recovery after the post-crisis period. The case of the Republic of Moldova, which implemented a tax reform regarding the tax exemption on reinvested profit, is analyzed. The article aims to explore the effects of the reform from the perspective of the impact on economic growth and budget revenues. Following the analysis, solutions are proposed to improve the national tax system to contribute more to economic growth. The solutions aim to implement tax incentives better directed to the intended purpose and have a lower budgetary impact. | | Keywords: Tax Policy, Economic Growth, Tax Revenues, Structure Of The Taxation System, Corporate Income Tax, Accelerated Depreciation. |
| 11. ENVIRONMENTAL MANAGEMENT: BETWEEN SUSTAINABLE DEVELOPMENT AND COSTS |
Download | | Author(s): Valentina Panus | | DOI: 10.4316/EJAFB.2024.12110 | | Abstract: Environmental aspects - especially in the financial-accounting field - should be researched with priority, given that the way in which this type of information is collected, processed and reported will have a significant influence on the decision-making process related to this domain. Thus, this research focuses on the analysis of the core of this field, represented in this context by the environmental cost nomenclature. Considering the different types of information collected through environmental costs, it can be appreciated that they summarize the multitude of different reports, analyses, and charts, representing the basis for decision-making. However, to isolate the essence of the costs, it is necessary to investigate the research in the field, the opinions of scientists and also the related norms: what they provide, what they require, what activities they recommend regarding the environment, sustainability, etc. Thus, the author highlighted various costs specific to the environmental management, resulting from the provisions in force and the entities' activity processes. | | Keywords: Environmental Management; Corporate Social Responsibility; Sustainability; Environmental Accounting. |
| 12. THE BASICS OF ESG INTEGRATION IN THE BANKING SECTOR: EFFECTS ON ASSET MANAGEMENT AND THE GROWTH OF THE GREEN BOND MARKET |
Download | | Author(s): Angelica Buboi (danaila), Cristina Gabriela Cosmulese | | DOI: 10.4316/ejafb.2024.12111 | | Abstract: Financial crises, climate change, the CoViD-19 pandemic and, more recently, the emerging political crisis in Eastern European countries, have created an extremely complex context, characterised by strong instability, which threatens the achievement of most of the goals set by the UN 2030 Agenda. In this context, we aim to synthesize the most significant passages of international positions, which have gradually consolidated from environmental issues in order to explore how the integration of ESG principles influences investment strategies and asset management in financial institutions, as well as the evolution and dynamics of the green bond market. The study highlights the importance of green bonds as key financial instruments for promoting sustainable investment, providing valuable insights for practitioners and academics interested in sustainable finance. The findings explore the leverage points for the progressive expansion of the ESG galaxy, which is a cross-cutting and shared topic with public procurement and the real estate market. | | Keywords: ESG; Banking Market; Green Bond; Sustainability. |
| 13. CONTRIBUTIONS OF SOCIAL ENTREPRENEURSHIP TO SUSTAINABLE ECONOMIC DEVELOPMENT: A BIBLIOMETRIC ANALYSIS |
Download | | Author(s): Simona - Maria Brinzaru, Cipriana Mihai | | DOI: 10.4316/EJAFB.2024.12112 | | Abstract: In the current economic context, social entrepreneurship is an innovative and socially responsible approach that combines economic objectives with addressing social and environmental problems, thus promoting sustainable development. The main aim of the research is to map the thematic of social entrepreneurship in order to highlight its contributions to sustainable economic development. The objectives that help to achieve the main goal are as follows: O1: To analyze the evolution of the concept of social entrepreneurship by identifying the most common terminologies used in the research topic and the links between the keywords that outline the most relevant thematic clusters; O2: To identify the key publications that have contributed to the development of the analyzed topic; O3: To outline future directions of social entrepreneurship research. The results obtained contribute to the development of the literature by providing a broad perspective on the evolution of the concept of social entrepreneurship. Outlining future research directions may also identify business opportunities generated by current digitalization trends in the context of social entrepreneurship. | | Keywords: Social Entrepreneurship, Sustainability, Economic Development, Social Value. |
| 14. NEW MANAGERIAL PARADIGM AIMED AT NATIONAL INFRASTRUCTURE DEVELOPMENT ACTIVITIES IN THE PUBLIC HEALTH SECTOR |
Download | | Author(s): Oana Miron | | DOI: 10.4316/EJAFB.2024.12113 | | Abstract: The current healthcare system in Romania faces many challenges, including regional disparities and lack of modern equipment. Adopting an efficient organizational model is essential for the prudent use of resources - both national and European - and for accelerating development. This paper aims to highlight the circumstances and motivations behind adopting an organizational and functional model focused on healthcare infrastructure development, starting from an analysis of the general state of this infrastructure and its effects on meeting patient needs. The establishment of the National Agency for Healthcare Infrastructure Development (NAHID) represents such a managerial model, emphasizing performance and efficiency to optimize resources and mitigate risks. This model also underpins the management of the construction of three regional emergency hospitals in Romania, equipped with state-of-the-art technology designed to significantly improve access to high-quality medical care. Our analysis underscores the potential of this model to radically transform Romania's healthcare infrastructure and effectively address both current and future patient needs. In preparing this paper, I have considered data and information from the most credible sources, as well as the relevant regulatory framework as it has evolved recently. | | Keywords: Management; Healthcare Infrastructure Development; Performance / Efficiency; Patient Needs; Quality Of Medical Services. |
| 15. OPTIMIZATION OF RESOURCES THROUGH MODERN DECISION-MAKING TECHNOLOGIES AS A FUNCTION OF CAPITAL INVESTED |
Download | | Author(s): Anamaria- Geanina Macovei | | DOI: 10.4316/EJAFB.2024.12114 | | Abstract: In a dynamic and competitive economic environment, the efficient use of resources is essential for the success of manufacturing companies/enterprises. The study examines how modern economic-mathematical methods and technological solutions, such as artificial intelligence (AI), big data analytics and ERP platforms, can be used to help optimize resources and decision-making. To find the optimal solutions in the use of material, human and financial resources, the focus is on integrating linear programming models with complex IT tools. The study focuses on the use of customized IT solutions in value chain management, highlighting how they can improve operational efficiency and the quality of decision-making processes. Through the responsible use of resources, it emphasizes the sustainability of production processes, providing examples of reducing costs, maximizing benefits and minimizing losses. The conclusions emphasize that the adoption of modern digital technologies and the application of optimization techniques enable firms to quickly adapt to market requirements and strengthen their competitive position, ensuring long-term sustainable growth. The study provides a theoretical and practical perspective on the changes in decision-making and how integrated solutions can maximize economic performance in a globalized world. | | Keywords: Optimal Use Of Resources; Production, Advanced Technology; Economic Phenomenon. |
| 16. CRYPTOCURRENCIES - THE KEY TO THE FUTURE OF DIGITAL ECONOMY |
Download | | Author(s): Camelia Baesu | | DOI: 10.4316/EJAFB.2024.12115 | | Abstract: Over the last decades, the money market has become more and more complex and diversified bringing about both greater opportunities and risks for investors. Thus, the investment environment has significantly changed lately, and technology has been playing a major role in this conversion. In time cryptocurrencies have been given greater and greater attention by investors and mass-media, due to the significant increase in their prices and their possibility of providing an alternative to traditional coins and investments. This has led to an increase in demand and interest for cryptocurrencies such as Bitcoin, Ethereum and Litecoin, and has made them be one of the most popular and innovating active financial assets at present. The key factors influencing global cryptocurrency market increase are the increasingly greater demand of expertise in business, limited cash-paying systems, increase in payment demand in developing countries, improvement of data security and increase in market size. | | Keywords: Cryptocurrency; Nft; Investment; Cryptocurrency Market; Blockchain Technology; Recognition. |
| 17. THE ACCOUNTING AND AUDIT PROFESSION IN THE AGE OF EMERGING TECHNOLOGIES. DESCRIPTIVE ANALYSIS |
Download | | Author(s): Camelia Catalina Mihalciuc | | DOI: 10.4316/EJAFB.2024.12116 | | Abstract: The accounting and auditing profession is at a crucial moment of transformation, driven by the rapid advance of emerging technologies. In the era of digitization, tools such as Robotic Process Automation (RPA), Blockchain, Internet of Things (IoT), Artificial Intelligence (AI) and Data Analytics have begun to redefine the way financial-accounting data is identified, collected, processed and reported, these technologies are continuously optimizing and improving traditional processes in any business domain, as well as the efficiency of transparent financial reporting communication. The objectives of this paper is to highlight on the one hand the role of emerging technologies in accounting and auditing, and on the other hand to illustrate the need for applicability of these technologies in business domain, by conducting a survey analysis of the perception of accounting professionals on the adoption and integration of emerging technologies in accounting and auditing. From the analysis of the papers presented, it is thus possible to provide a concrete insight into how technological innovations can be effectively implemented in accounting and auditing practice, as well as a deep understanding of how emerging technologies are shaping the future of the accounting and auditing profession, highlighting both the opportunities and challenges associated with this transformation. | | Keywords: Machine Learning; Robotic Process Automation (RPA); Blockchain, Internet Of Things (IoT); Artificial Intelligence (AI); Data Analytics Accounting Professionals; Information Technologies, Emerging Technologies. |
| 18. MODERN MODELS FOR EVALUATING COMPANY PERFORMANCE THROUGH LOGISTICS CHAINS |
Download | | Author(s): Elena Hlaciuc | | DOI: 10.4316/EJAFB.2024.12117 | | Abstract: The purpose of this paper is to analyze the impact of globalization on the logistics chain in order to be able to deliver globally and record good financial performance in order to be competitive. As a result of rapid technological development, the competitiveness of a company is no longer limited to a city, a county, a country, but is in direct competition globally with other companies that offer the same products or services and can be accessed just a click away. In this context, the established objectives focus on: evaluating the direct influence of the company's earnings, its development and its market share. The research methodology is based on the analysis of the financial statements regarding the turnover of the company ARGUS S.A. during the period 2021 - 2023, and the results obtained materialize in the proposal of objective solutions to reduce logistics costs. | | Keywords: Turnover; Logistics Chains; Market Share; Performance. |
| 19. THE IMPACT OF INFLATION ON THE AUSTRIAN ECONOMY SECTOR |
Download | | Author(s): Muhammad Ridho, Bagas T Harianja, Iskandar Muda, Alexandru- Mircea Nedelea, Cristina Gabriela Cosmulese | | DOI: 10.4316/EJAFB.2024.12118 | | Abstract: environment characterized by uncertainty and price swings. With an emphasis on the factors influencing Austria's long-term economic growth, this study attempts to examine the effects of inflation on the country's economy. Panel data analysis for the years 2011-2021 is used in the study, which draws from trustworthy secondary sources like the World Bank, the OECD, and other pertinent international databases. Advanced econometric time series analysis techniques were used to accomplish the study's goals, revealing the connections between the inflation rate, investment, consumption, and other important economic factors. The results show that inflation shows significant annual fluctuations, with direct and indirect effects on economic growth. Moderate increases in inflation have been associated with a positive impulse to investment and consumption, but high levels of inflation have had a destabilizing impact, generating market uncertainty and a decline in investor confidence. | | Keywords: Inflation; Econometric Procedures; Economic Growth. |
| 20. STUDY ON TAX COMPLIANCE AND DETECTION OF POSSIBLE TAX EVASION BEHAVIOR |
Download | | Author(s): Mihaela Tulvinschi | | DOI: 10.4316/EJAFB.2024.12119 | | Abstract: The topicality of the chosen research topic results from the negative impact that tax evasion has on the collection of tax revenues to the state budget. Combating the evasion phenomenon is an urgency to ensure economic growth, equity in distribution and social stability. The purpose of this study is to present an overview of the situation and a perspective on tax evasion. The objectives proposed to achieve this goal are: analysis of the specialized literature to identify research trends on tax evasion; tax risk analysis based on economic and financial indicators; creation of an econometric model to authenticate the link between various operating expenses and turnover, trying to detect possible evasive behaviours. The results of the study lead to the conclusion that tax evasion could be prevented by early identification of cases of tax non-compliance. | | Keywords: Tax Evasion, Operating Expenses, Turnover, Tax Non-compliance. |
| 21. ACCOUNTING AND SUSTAINABILTY INFORMATION QUALITY AND STAKEHOLDERS' EXPECTATIONS - A QUALITATIVE RESEARCH |
Download | | Author(s): Liliana Lazari, Marian Socoliuc, Irina Iavorschi | | DOI: 10.4316/EJAFB.2024.12120 | | Abstract: The research aims to identify the users of accounting information, to categorize them and to reveal their information needs in order to assess the extent to which they are met through financial reporting. The methodology of the study is based on scientific research methods specific to fundamental analysis, such as information analysis and synthesis, the comparative method and the inductive method.The research results have identified that the heterogeneous and changing needs of stakeholders exert spasmodic pressure on the producers of accounting information, which contributes to changes in the content of financial statements and hence in the additional sustainability information provided in them. The authors emphasize that an understanding of the categories of stakeholders interested in accounting information, as well as the information needs of each group, will determine the usefulness of the financial-accounting information provided through financial or sustainability reporting. | | Keywords: Accounting Information, Sustainability Information, Quality Of Accounting And Sustainability Information, Financial And Sustainability Reporting, Rationale For Decisions, Stakeholder Expectations. |
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