Proceedings

After the first stage of implementing the Country Action Plan, which ended in
September 2005, the Financial Reporting Council has concluded that the areas of
interest are:
• the insurance of the accounting and auditing Romanian legislation compliance
with the community acquis;
• the implementation of the IFRS and the International Standards of Audit (ISA)
at the public interest entities, for the financial year ended at 31 st of December
2006;
• the improvement of the operational capacity of regulatory bodies;
• the improvement of the oversight of the accounting and auditing professions,
the corporate governance and the public transparency, as outlined in the
community acquis, both at legislative level, as well as at the best practices in
the European Union level.
The implementation of the Country Action Plan implies a mix of short and medium
term projects.
According to the GD no. 2170/2004, the short-term objectives are:
• setting up the Steering Committee for the implementation of the Country
Action Plan;
• the amendment of the primary and secondary legislation;
• improving the organization of the Accounting Advisory Board and the
operational capacity of regulatory institutions: MFP (Ministry of Finances),
BNR (National Romanian Bank), CNVM (Romanian National Securities
Commission) and CSA (Insurance Supervisory Commission);
• the continuous improvement of the professional training;
• the assessment of the ways to enhance the quality and the credibility of the
financial audit.
The long-term objectives are:
• the compliance of the Romanian legislation with the accounting law based on
the IFRS and the European directives;
• the completion of the secondary legislation for the capital market;
• launching the implementation process to ensure an improved public
transparency of the financial statements of the listed companies and other
public interest entities;
• improving the organization and the development of the best practices for the
professional bodies in the accounting and financial audit field.
The IFRS adoption determines a major change in the accounting language for the
public interest entities, as well as for the accounting consultants, the auditors and the
analysts in the financial accounting field. Moreover, this approach, which is a major
national one, will determine additional responsibilities for all the regulatory bodies.
The transition to the IFRS is not exclusively regarding the accounting field, but it has
much wider implications - from the basic activity planning to the strategic
management of the business entities. The adoption of IFRS requires the following
(CSA, 2006):
• a new performance appraisal system;
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