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ISSN: 2344 - 102X
ISSN-L: 2344 - 102X
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Volume 1, Number 1, Year 2013| 1. UPON COMMENCEMENT | 
Download | | Author(s): Prof. Phd Dhc Ionel Bostan | | DOI: | | Abstract: EDITORIAL EJAFB (1): "UPON
COMMENCEMENT" | | Keywords: - |
| 2. THE VALUE RELEVANCE OF EARNING MANAGEMENT IN MANUFACTURING INDUSTRIES BEFORE AND DURING THE FINANCIAL CRISIS |
Download | | Author(s): Stefano Azzali, Luca Fornaciari, Tatiana Mazza | | DOI: 10.4316/EJAFB.2013.111 | | Abstract: This paper empirically investigates the value relevance of reported earnings during the period
2006-2011 for 193 firms (excluding banks and insurance companies) listed in the Milan Stock
Exchange, representing about 91.28% of the stock exchange capitalisation (30 April 2012). The
objective of the paper is to analyze: a) the value relevance of earnings, cash flow from operations,
discretionary and non-discretionary accruals; b) the effect of Global Financial Crisis on the value
relevance of accounting information. The paper contributes to examine different components of
earnings and to filling a gap extending the analysis to the financial crisis. To test our hypotheses
first, we determined the accruals by applying specific models proposed in the international
literature, such as the Jones (1991) model and its subsequent amendments; second, we analysed
the value relevance of earnings, cash flow and accruals basing the analysis on Ohlson (1995)
model, extensively used in previous value relevance researches. The findings show that cash flow
from operations, discretionary and non-discretionary accruals have different value relevance. In
addition, the results describe the reduction of value relevance during the economic and financial
crisis. | | Keywords: Earnings Management, Value Relevance, Discretionary And Non-discretionary
Accruals, Cash Flow From Operating, Global Financial Crisis |
| 3. COMPREHENSIVE INCOME, AN HISTORICAL PERSPECTIVE. THE DEVELOPMENT OF PROPRIETORSHIP AND ENTITY THEORIES, AN INTERNATIONAL APPROACH |
Download | | Author(s): Andrea Cilloni, Marco Angelo Marinoni, Barbara Merino | | DOI: 10.4316/EJAFB.2013.112 | | Abstract: IASB considers that the concept of Comprehensive Income (C.I.) successfully answers financial
statements users' needs. In June 2011, IASB and FASB separately issued convergent amendments
on the presentation of O.C.I. The Boards also agreed two options to present items of O.C.I. This
paper argues that the opportunity should now be taken to carry out further research in order to
validate this new approach as being in accordance with existing accounting principles. The IASB and the FASB working jointly on comprehensive income has rekindled the heated twentieth century debate over proprietary versus entity theory. We examine that historic debate for the purpose of better understanding the current issues related to income determination. We suggest that as long as proprietary theory (Sprague, 1908, Hatfield, 1909, Canning, 1929) more recently residual
equity theory (Sprouse, 1958) and contrast it with entity theory (Paton and Littleton, 1930. We argue that proprietary theory with its focus on measuring stockholder remains dominant. We then examine why we do not think that comprehensive income will not be adequate to meet users' needs
in a global economy.
We then discuss the current IASB standard for measuring comprehensive income and discuss the advantage that entity theory affords in a global economy. We then examine the contemporary literature about "disclosure" (Beretta and Bozzolan, 2004; Hutton, 2004; Beattie and McInnes,
2006) and "value relevance" (Biddle and Choi, 2006; Ernstberger, 2008; Barton et al., 2010). Our objective is to offer an alternative measure of C.I. based on economic income that will provide all users better information for decision making. | | Keywords: Comprehensive, Fair-value, (un)realization, Proprietorship And Entity Theory |
| 4. COMPARATIVE STUDY ON ASSESSING THE PERFORMANCE OF ECONOMIC ENTITIES MEHEDINTI COUNTRY |
Download | | Author(s): Costin Daniel Avram, Veronel Avram | | DOI: 10.4316/EJAFB.2013.113 | | Abstract: The notion of performance normally associated with it other three notions, namely efficiency,
economy and effectiveness. Involves either maximizing efficiency results obtained with a given
amount of resources or minimizing resources to achieve a predetermined result, being in all cases
a report, a comparison of effectiveness (outcome) and effective effort (expense) to obtain the result
by a or process. Economics aims at training resources at minimum cost. Effectiveness is the quality
of process to produce the desired results and that acts as a control criterion level and the
achievement of objectives. | | Keywords: Competition, Productivity, Profitability, Return On Equity |
| 5. FRAUD MANAGEMENT AUDIT AND THE EVOLUTION OF FINANCIAL MARKETS UNDER THESE CIRCUMSTANCES |
Download | | Author(s): Florin Boghean, Carmen Boghean | | DOI: 10.4316/EJAFB.2013.114 | | Abstract: Financial management could not be conducted without information in general and without
financial and accounting information in particular. Economic, financial, accounting and market
information is essential for understanding and applying the management objectives. Financial
decisions rely upon the association between the regulatory economic policies implemented on a
macroeconomic level and the individual financial decisions made on a microeconomic level. The
responsibilities of external auditors, internal auditors and government auditors often require the
investigation of suspected fraud. SAS 99 and SAS 110 require auditors to use the information
obtained during the planning and performance of the audit to identify risks that may result in a
material misstatement due to fraud. In addition, auditors need to be aware of the various types of
frauds, their signs and the need to follow up to determine whether a suspicion is justified. | | Keywords: Audit, Fraud, Stakeholders, Financial Information |
| 6. THE APPLICABILITY OF BAYES' THEOREM IN AUDIT RISK |
Download | | Author(s): Ana- Maria Zaiceanu, Elena Hlaciuc | | DOI: 10.4316/EJAFB.2013.115 | | Abstract: The aim of this paper is to summarize the importance of the statistics in the financial audit area.
Our main goal it is focused on "dissecting" the area of statistics to see what we can "steal" more
from it for introducing it in the audit field. In the following paper we foresee a future direction of
the audit for the next century. We try to prove that, if the auditor will used the Bayes' Theorem,
then he will know for sure which is the possibility for a certain audit risk to appear, and which
consequences can generate. | | Keywords: Financial Audit, Audit Risk, Bayes' Theorem |
| 7. THE IMPORTANCE OF TACIT KNOWLEDGE IN TRAINING THE EMPLOYEES TO ACCES THE EXECUTIVE POSITIONS IN THE BUSINESS ORGANIZATION |
Download | | Author(s): Laurentia Elena Scurtu, Daniela Neamtu | | DOI: 10.4316/EJAFB.2013.116 | | Abstract: The aim of the present paper is to underline the most important definitions regarding some key
concepts like: knowledge management or tacit dimension, to pinpoint its implications in the global
competition of the business and to explain which is the importance of the tacit knowledge in the
formation of the employees to reach the executive positions in a business organization. This paper
focus as well on the possibilities of training within the company and emphasize which are the ways
to capture the tacit knowledge from the individuals and use it for the organizational welfare and
for the personal development that brings promotion to another level, called 'C' level. | | Keywords: Knowledge, Management, Tacit Dimension, Training, Executives |
| 8. CODE OF ETHICS - TOOL IN THE DEVELOPMENT OF A FAVORABLE CLIMATE ACCOUNTING PROFESSION |
Download | | Author(s): Greti Daniela Togoe, Marioara Avram | | DOI: 10.4316/EJAFB.2013.117 | | Abstract: Code of Ethics is a formal organization through which it declares its values and principles in
social issues and defines its responsibility towards stakeholders and behavior they expect from
their employees. The aim is to communicate the code of ethics are standards of the organization,
namely to guide present and future behavior and actions in different situations makes them clear
objectives, norms and values that support them and who is responsible.
National Code of Ethics for Professional Accountants of Romania establishes rules of conduct for
professional accountants and formulates the basic principles to be observed by them in order to
achieve common goals. Professional accountant pursue his professional activities under the rules
of conduct laid down by the Code of Professional Ethics and Compliance national and
international regulations. | | Keywords: Coding, The Accounting Profession, Code Of Ethics, Regulation, Moral Values |
| 9. THE DENATIONALIZATION OF THE BANKS - BASIC OBJECTIVE OF THE RESTRUCTURING OF THE BANKING SYSTEM IN THE CENTRAL AND SOUTH EASTERN EUROPE (CSE) COUNTRIES |
Download | | Author(s): Anisoara Niculina Apetri, Anamaria Hlaciuc | | DOI: 10.4316/EJAFB.2013.118 | | Abstract: In this study we shall try to elaborate a comparative analysis regarding the policies of the process
of banking denationalization used in five Central and South Eastern Europe (CSEE) countries
(Poland, Slovakia, Hungary, Romania and Bulgaria) during the transition period, as they had a
great influence on the increasing domination of the foreign capital banks and we shall offer a
complete image of the denationalization process that tended in the last years to sell all these banks
to foreign investors. We also intend to make a comparison between the features and the structure
of the banking system in the above mentioned CSEE countries and we will show that in the last
years, each of the five counties noticed an increasing domination of the foreign capital banks,
numerically but also from the point of view of the market share. | | Keywords: Banking System, Foreign Banks, Methods Of The Denationalization, Banking Reform |
| 10. MOMENTS IN THE MODERNISATION OF PUBLIC ACCOUNTING IN ROMANIA. A CASE STUDY REGARDING THE REVALUATION AND ARMONIZATION OF FIXED ASSETS |
Download | | Author(s): Geanina Maciuca, Mihai Seucea | | DOI: 10.4316/EJAFB.2013.119 | | Abstract: The introduction of accrual accounting in the public sector is a recent phenomenon and a
worldwide subject of debate. In this article, we presented the steps taken by Romania in adopting
accrual accounting, first as a candidate country for European Union accession and later as a
member state. Furthermore, we studied how the transition to accrual accounting led to a better
management of the assets of public institution while choosing, as a case study, the revaluation and
amortization of fixed assets.
The scientific approach of this research paper consists of two parts: in the first part, we presented
a gradual historical evolution of public accounting, combined with Romania's efforts in adopting
accrual accounting. In the second part, we showed, in the form of a case study, the advantages of
introducing amortization and revaluation of fixed assets as a first step in the strengthening of
accrual accounting. | | Keywords: Accrual Accounting, Cash Accounting, Revaluation, Amortization |
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