EUROPEAN JOURNAL OF ACCOUNTING, FINANCE & BUSINESS

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ISSN: 2344 - 102X

ISSN-L: 2344 - 102X



 

Volume 10, Number 2, Year 2022

1. EVOLUTION OF ACCOUNTING PROFESSION IN THE BRICS COUNTRIES
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Author(s): Anatol Melega
DOI: 10.4316/EJAFB.2022.1021
Abstract: The role of professional accountants in the development of accounting is undeniable. Professional accountants are those who make considerable efforts, along with state structures, in harmonizing accounting with international accounting standards. In the BRICS economies (Brazil, Russia, India, China, South Africa) the accounting profession is represented by structures that operate independently, having a key role in establishing accounting principles and practices. The development of accounting is closely linked to the development of economic relations in society and has its own history. In this article we aim to determine whether accounting in the BRICS economies is progressive and whether accounting changes are evolving. Thus, the purpose of this article is to give an overview of the evolution of the accounting profession in emerging BRICS economies and to analyze the role of the accounting profession in these countries in accounting harmonization and convergence with international accounting standards (International Financial Reporting Standards).
Keywords: Accounting Profession; Accounting; BRICS; History

2. MACROECONOMIC INSTABILITY, AGGREGATE FINANCIAL LIQUIDITY AND STOCK MARKET LIQUIDITY
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Author(s): Monday Uhunmwangho, Eseoghene Joseph Idolor
DOI: 10.4316/EJAFB.2022.1022
Abstract: This study examined the effects of macroeconomic instability and aggregate liquidity on stock market liquidity. Macroeconomic instability constitutes risk for investments, whereas financial liquidity encourages trading at the exchange. The purpose of this study was to investigate the combined impact of macroeconomic instability and financial liquidity measured at the aggregate level on stock market liquidity in Africa. A cross-section of 16 African countries who are members of African Security Exchange Association (ASEA) were engaged for period from 2013 to 2019. The dynamic model and the Generalized Method of Moments (GMM) in first difference transformation regression technique constitute the methods. This study found that macroeconomic instability has positive and significant effect on market liquidity, while diaspora remittances negatively and significantly influenced it. Bank liquidity and aggregate money supply positively and significantly determined stock market liquidity. This study concluded that the challenge of stock market liquidity in Africa could be tackled through diaspora remittances, bank liquidity and money supply because they have the potential to reduce the cost of raising capital and stimulate trading activities at the exchange, thereby influencing stock market liquidity.
Keywords: African Stock Markets; Aggregate Financial Liquidity; Macroeconomic Instability; Stock Market Liquidity.

3. DESIGN OF AN ECONOMETRIC MODEL FOR EVALUATION O GOODWILL FOR COMPANIES LISTED ON REGULATED MARKETS
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Author(s): Veronica Grosu, Tabita Cirdei
DOI: 10.4316/EJAFB.2022.1023
Abstract: Goodwill is one of the most complex and unclear concepts in financial accounting. It is uncertain what it represents as an asset, it is recognized only in the situation of business combinations and it is subject of depreciation. The aim of this paper is to analyze the causes that determined the significant increase in the importance of intangible assets and especially goodwill in the success of a business and in increasing its global value. The objectives of the research are focused on: highlighting the difference between internally generated goodwill and purchased goodwill; on determining the reasons behind the existence of such controversial opinions regarding the recognition and valuation of goodwill; identifying how goodwill contributes to the deepening of the quantitative difference between the market value and the book value of a company; determining the impact of not presenting goodwill in financial reporting. The obtained results consist in establishing the dependency relationship between goodwill and Insider Holdings, R&D, Capitalized R&D as % of Invested Capital and EV/EBITDA.
Keywords: Book Value; Goodwill; Intangible Assets; Research And Development; The Market Value Of The Enterprise

4. SOME THEORETICAL-PRACTICAL CONSIDERATIONS REGARDING THE CALCULATION METHOD BASED ON THE CONCEPT OF COST ON ACTIVITIES
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Author(s): Svetlana Mihaila, Violeta Codrean, Mihaela Ionela Stanciuc (socoliuc)
DOI: 10.4316/EJAFB.2022.1024
Abstract: In the current context, efficient and judicious cost management involves reducing them in order to increase the profitability of the entity's business. This paper aims to highlight the role of new methods of cost calculation in entities producing products, service providers and contractors, establishing strengths and scourges between traditional methods and modern / evolved methods. Thus, in conducting a quality research, an extensive bibliometric analysis was performed through Google Scholar, Web of Science and Biblioshiny platforms, which allowed the research of the concept of "calculation methods" at national and international level in terms of several criteria. At the same time, in the context of modern costing methods, the ABC method was selected to exemplify the application methodology. In conclusion, the main advantages and disadvantages of the traditional costing method and the ABC method were highlighted. Summarizing the above, it can be concluded that efficient cost management allows the achievement of pre-established objectives, the achievement of the competitive advantage of market entities, the efficient adoption of decisions and the rationalization of consumption at the entity level.
Keywords: Management Accounting, Modern Methods, Production Cost, Decision Making

5. OPPORTUNITIES AND CHALLENGES IN THE ACCOUNTING PROFESSION BASED ON THE DIGITALIZATION PROCESS
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Author(s): Melinda Timea Fulop, Nicolae Magdas
DOI: 10.4316/EJAFB.2022.1025
Abstract: Accounting is embedded in an environment that has undergone radical changes in communication and collaboration for a long time. Successful digitization in a company also has to do with being prepared in accounting. This means recognizing digital trends in good time, assessing them and using them to our advantage. Due to COVID-19 and the associated restrictions, digital working methods are increasingly becoming the focus of domestic companies. This also applies to accounting. Thus, the aim of this study was to present an overview of the various digitization processes in the accounting field that can help companies10 in the selection of the best one for them. In addition, we want to highlight the significance of digitization and more than that, we want to increase knowledge and intensify abilities in order to decrease the reluctance of companies to step into this field. The results of the research show that there are a series of variants for digitizing on the market, the important process being the one to make the optimal choice for each company according to their needs.
Keywords: Digitization; Accounting, Automatization, Artificial Intelligence

6. IDENTIFYING THE METHODS OF ADAPTING THE BEHAVIOR OF CASH FLOWS TO THE VARIATIONS OF THE RELEVANT FINANCIAL-ECONOMIC INDICATORS IN MULTIPLE CRISIS CONDITIONS
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Author(s): Veronica Grosu, Madalina Tanasoaia
DOI: 10.4316/EJAFB.2022.1026
Abstract: The phenomenon of globalization manifests itself in the internationalization of markets, of companies whose products or services are sold all over the world and are available to customers irrespective of their country of origin, but also of financial markets, as the role of international finance and lending is central. In this context, the purpose of this paper is focused on the analysis of the importance that economic entity gives to permanent accounting, supervision and control of cash flows to ensure business continuity and sustainability. The objectives set are focused on: O 1 - identification of the ways to use the financial resources in the organization of business sustainability and O 2 - identification of cash flow behaviors according to the related activities. The results obtained are materialized in the development of a model to evaluate the cash flow behavior for entities listed on a regulated stock exchange, affected by overlapping crises.
Keywords: Cash Flow; Profit; Resources; Supervision; Sustainability

7. ANALYSIS OF THE IMPACT OF SOCIAL PERFORMANCE ON FINANCIAL PERFORMANCE
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Author(s): Raluca Andreev, Mihaela Tulvinschi, Anamaria - Geanina Macovei
DOI: 10.4316/EJAFB.2022.1027
Abstract: Increasing competition and increasing stakeholder interest in the impact of business activities on the environment raises the issue of the need for businesses to invest or focus on corporate social responsibility (CSR) activities. There are opposing views in the field of studies on the positive or negative influence of CSR activities on financial performance. This paper aims to establish whether the various components of social performance have a significant influence on the financial performance of the Top 6 pharmaceutical companies listed on the Bucharest Stock Exchange (BVB), over a period of analysis between 2011-2020. For this, a multiple linear regression model was used, and the results obtained showed that CSR activities positively and significantly influence financial performance, provided that the size criteria are met, which provides financial assurance for the successful completion of CSR actions. Based on the results obtained, pharmaceutical companies should continue to support CSR activities and provide the general public with better information on the actions taken so that they can be analyzed and measured in order to conduct more accurate research.
Keywords: Corporate Social Responsibility; Stakeholder Theory; Turnover; Sustainability; Econometric Model.

8. INTERCONDITIONALITY BETWEEN THE DYNAMICS OF MERGERS AND ACQUISITIONS AND MACROECONOMIC FACTORS
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Author(s): Ecaterina Ulian
DOI: 10.4316/EJAFB.2022.1028
Abstract: This article aims to test the hypothesis that between the activity of mergers and acquisitions and the factors of a macroeconomic nature is a relationship of interdependence. The synthesis of the literature highlighted that among the most frequently approached factors can be mentioned the following: the exchange rate, tax rate, capital market interest rate and GDP. By applying regression analysis and correlation for a data set covering the period from 1985 to 2020, a close link was established between the evolution of the number of mergers and acquisitions and the evolution of World GDP. The other factors have an insignificant influence. This is explained by the fact that mergers and acquisitions themselves are an accelerating factor for the sustainable development and growth of the business, stimulating innovation, technology development, modernization and therefore economic growth. And all this is reflected in GDP growth.
Keywords: Analysis; Corporate Tax Rate; Factor; GDP; Mergers And Acquisitions; Macroeconomic.

9. LEGAL FRAMEWORK EVOLUTION ON THE ENTITY EVALUATION IN THE REPUBLIC OF MOLDOVA
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Author(s): Iulita Birca
DOI: 10.4316/EJAFB.2022.1029
Abstract: This paper presents the importance of the legal framework evolution in the field of assessing the value of economic entities in the Republic of Moldova. The aim of this study is the theoretical-empirical research of the literature on the legal framework in addressing the value of economic entities in the context of economic processes' evolution that has facilitated the knowledge and improvement of performance in the field of evaluation. The objectives of the research are to identify in time the legal framework in the field of assessing the value of economic entities in the Republic of Moldova and their positive effects as a result of the evolution and adaptability to new conditions of economic development. The following methods were used in the study: identification of the legal framework, analysis, synthesis, induction and deduction, comparative analysis. The results are reflected in the presentation of the legal framework, which can serve as recommendations within the research process of all interested subjects, as it aims to increase the value of an entity, maintain the reputation of the entity on the market and contribute to the strengthening of its stability, as well as improving the legislative framework.
Keywords: Evaluation; Entity Evaluation; Legal Entity; Law; Legal Framework.

10. THE IMPORTANCE OF IMPLEMENTING AND APPLYING CSR PRACTICES IN ENTERPRISES IN THE REPUBLIC OF MOLDOVA
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Author(s): Ana-carolina Cojocaru (barbieru)
DOI: 10.4316/EJAFB.2022.10210
Abstract: The growing concern of society about problems of ethical, environmental and social nature, make companies try to address them in depth, acquiring a permanent commitment to all interest groups. This implies that companies adopt an active and responsible posture regarding the impact of their operations. CSR is an essential aspect of any organization livelihood. This is becoming an inevitable issue, regardless of the size or industry of the company. The main objective of the paper is to delve into the importance for companies to be socially responsible, whether by focusing their actions on the internal or external sphere with which it is related. In presenting of the material, the descriptive method was chosen, which incorporated components of comparison, analysis and deduction. We also used the questionnaire as a method of analysis, in order to be able to directly gather the opinions of the entities from the Republic of Moldova. The findings of the study can be employed in the practice of entities as well as for educational reasons.
Keywords: Corporate Social Responsibility, ESG Principles, Local Companies, SMEs.

11. HUMAN CAPITAL AND SUSTAINABLE DEVELOPMENT
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Author(s): Lilia Sava, Valentina Tirsu
DOI: 10.4316/EJAFB.2022.10211
Abstract: In this paper was analyzed the concept of human capital in the context of implementing the principle of a sustainable development at global and national level. The basic purpose of the research theme is presented in the form of ensuring the need for the development of the labor force in an efficient form in the Republic of Moldova, taking into account the competitiveness and sustainability in this sphere of influence. The sustainable development of a country can be perpetuated and ensured only by increasing the quality of human capital, which is a prerequisite for achieving the basic goal over time, while being a primary factor strictly necessary for increasing its economic capacity. The research methodology includes a diverse set of methods such as: induction, deduction, comparative analysis, synthesis, scientific abstraction. Thus, human capital is identified as an indispensable factor for the sustainable development, where its accumulation is defined as the main condition for progress and innovation, as means of reducing the economic deficit, as a precondition for a more optimal transformation of natural reserves into production capital.
Keywords: Sustainable Development; Human Capital; Education; Ecology

12. RELEVANCE AND ROLE OF COMMUNICATION BETWEEN AUDITORS AN THE AUDITED ENTITY IN THE AUDIT MISSION
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Author(s): Sergiu Soimu, Anatol Graur, Galina Badicu
DOI: 10.4316/EJAFB.2022.10212
Abstract: One of the tools of restructuring strategies that can contribute to adjusting of attitudes, to the way of looking at things and changing behaviors in order to improve the performance of an audit entity is the effective and efficient communication. In the audit process, the communication process generally takes place directly between the auditor and the persons responsible with the governance in the audited entity. The issue of communication appears systematically in professional auditing standards, because the audit involves in its development numerous communication processes. This study is a research on the ethics of communication, developed in order to discover the basis on which an ethical infrastructure can be designed in such a way that it sustains the trust in the provided information by the audit activity. Such an investigation brings two benefits: it gathers information on audit communication and offers guidance for planning improvements in audit practice. The research results can be used both in the practice of the entities and for didactic purposes.
Keywords: Audit; Effective Mutual Communication; Inadequate Mutual Communication; ISA.

13. PROBLEMATIC ISSUES RELATED TO THE EVALUATION AND ACCOUNTING OF DIRECT MATERIAL COSTS
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Author(s): Rodica Cusmaunsa, Natalia Curagau
DOI: 10.4316/EJAFB.2022.10213
Abstract: In the the present article there are examined some problematic issues as regards the evaluation of and the accounting for direct material costs. By using research methods, such as that of analysis and deduction, there were also investigated the views of local scientists, that allowed for the formulation of stronger conclusions and recommendations on the settlement of the problem related to the evaluation and accounting of direct materials costs.
Keywords: Evaluation; Direct Materials Costs; Normative Method; Method Of Equivalence Coefficients.

14. EMPIRICAL RESEARCH FROM EXISTING SPECIALTY LITERATURE IN DATABASES IN THE FIELD OF THE ACCOUNTING PROFESSION AT INTERNATIONAL LEVEL
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Author(s): Maria Gherman Bursuc, Marian Socoliuc
DOI: 10.4316/EJAFB.2022.10214
Abstract: The potential of systematic empirical research to contribute to the development of the accounting profession has been increasingly supported in recent years. Such a paper is frequently reviewed in a conventional narrative manner, but in her commentary on "empiricism" in business ethics, it is recommended that the accumulated number of empirical studies be accompanied by the application of meta-analysis techniques. Unlike narrative analysis, meta-analysis provides a disciplined and explicit method of reviewing quantitative research, the general goal being to obtain statistically valid conclusions about a particular body of research. It is further emphasized that, in addition to dealing with published studies in business ethics, meta-analysis could be usefully used in the service of business ethics through reviews of relevant studies published in other literatures.
Keywords: Accounting Literature; Accounting Profession; Accounting Education; Accounting Theories; Accounting Profession.

15. SPECIFIC APPROACHES TO THE ACCOUNTING OF THE COSTS OF LOAN CONTRACTS IN ACCORDANCE WITH NATIONAL AND INTERNATIONAL REGULATIONS
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Author(s): Nicolai Russu
DOI: 10.4316/EJAFB.2022.10215
Abstract: The content of the paper addresses problems that arise in practice regarding the recognition and measurement of interest related to bank credits, loans and leasing operations. The small number of publications focused on the given topic reinforces the degree of importance of the study. In this context, the results of the research of local and foreign scholars are analyzed as well as the provisions of national and international accounting regulations. In the research process, the need of calculation of the annual percentage rate of charge in accordance with advanced international practices is argued particularly. Among the fundamental recommendations, it is reasonable considered to bookkeep mentioned interest rates amounts at the time of their calculation in the total amount. For this purpose, it is proposed to introduce the separate sub-accounts to the accounts of financial liabilities or the methodological application of the accounts of anticipated revenues. Additionally, is analyzed the opportunity to use contingent liability accounts for the accounting of the total interest amount of a loan contract. The recommendations are reasonable for the correct determination of the indicators in the financial statements and serve as a basis for taking economic and managerial decisions. In order to achieve these proposals, the author considers it necessary to make changes in the national accounting standards and the general plan of accounting accounts. The information on the amount of interest rate accounted in accordance with the presented recommendations is to be used in the audit of financial liabilities. The practical implementation of the formulated recommendations will ensure the veracity of the information in the financial statements and their comparability at the national and international level.
Keywords: Borrowing Costs; Loan Contract; Professional Judgment; Accounting And Auditing

16. THE EFFECTS OF THE COVID 19 PANDEMIC ON THE EXECUTION OF LOCAL BUDGETS
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Author(s): Camelia - Catalina Mihalciuc, Andrei Leonte
DOI: 10.4316/EJAFB.2022.10216
Abstract: The effects of the COVID-19 pandemic were not only felt at national level, but also at global level with very important socio-economic consequences. All countries, continents, regions, urban and rural communities, families, and ultimately the thinking and lifestyle of every individual have been affected by the pandemic. The objective of this paper is to study the effects of the COVID-19 pandemic on the execution of local budgets. Thus, considering how complex and important this topic is, the research presents an overview of local budgets, theoretical notions of the stages of the budgetary process, and in the last part of the paper, the analysis of the income and expenditure budget of the City Hall of Dolhasca, this part of the paper being dedicated to the case study, where the evolution of the revenues and expenditures of the local budget of the City of Dolhasca during the COVID-19 pandemic is followed. The present paper, due to its practical and legislative aspects, constitutes a specialized scientific research in the field of local budgets, which combines theoretical and practical approaches in order to characterize the evolution of the revenues and expenses of the local budget of the City Hall of Dolhasca during the COVID-19 pandemic.
Keywords: Budget System; Fiscal-budgetary Policies; Local Budget; Revenues Of The Local Budget; Expenditures Of The Local Budget

17. APPROACHES TO EU ANTI-FRAUD INSTRUMENTS
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Author(s): Irina - Stefana Cibotariu
DOI: 10.4316/EJAFB.2022.10217
Abstract: The objective of this paper is to attempt to reconstruct the patterns of general fraud schemes and, in parallel, to analyze and argue which are the main tools that have emerged and are constantly evolving to counter the spread of fraud in different sectors and channels of the modern landscape. Thus, the main purpose is not to present an all-encompassing analysis of the entire scope of the fraud literature, but to provide a description of the different forms of fraudulent behavior in the context of a company's activities, the prevalence and consequences of such behavior. It is therefore essential to ensure the existence and effective tools in order to prevent, measure and assess the risks that may arise from fraudulent operations, with the ultimate aim of nipping in the bud the sequence of illicit maneuvers between the ranks of corporate life. In this paper, we start by defining the key elements that revolve around the concept of fraud, while considering the exogenous and endogenous variables that influence it.
Keywords: Anti-fraud Policy; Anti-fraud Strategies; Audit Authority; European Commission; Tax Fraud.

18. STUDY OF THE EVALUATION OF THE ACTIVITY OF ENTITIES CARRYING OUT REHABILITATION, DEVELOPMENT AND MAINTENANCE OF PUBLIC ROADS IN THE REPUBLIC OF MOLDOVA
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Author(s): Galina Badicu
DOI: 10.4316/EJAFB.2022.10218
Abstract: In order to appreciate the activity of the entities, which carry out rehabilitation, development and maintenance works of public roads in the Republic of Moldova, the paper offers an analysis of the patrimony according to the degree of liquidity, the financial autonomy that expresses the ability of the entity to face financial commitments and the estimation of the quality and entity management efficiency. The object of the study is the official financial statements of the entities in the field. According to the results of the study, the problematic aspect of a ranking for entities in the field of public roads is the selection of the necessary number of indicators that would most accurately characterize the characteristics of the field, which would allow determining the rank of an entity among competitors. In this respect, further development of the credit scoring methodology is needed to improve the quality of the risk assessment for the entities analysed. The results of this study can be used for the development of risk management of entities in the field of public roads, considering the need to perform both financial statements audit and internal audit, improve the efficiency of cash flow and asset management, assess the facts to prevent risky events and reduce possible losses. The definition of research is based on the use of specific research tools such as: observation, collection and processing of data and information, analysis, synthesis, comparison and deductive reasoning.
Keywords: Credit Scoring Methodology; Entities In The Field Of Public Roads; Financial Performance; Financial Position; Financial Stability; Liquidity; Risk Level; Solvency

 
     
     
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