Proceedings

literally several provisions of the General Framework for the Preparation and
Presentation of Financial Statements drafted by IASC/IASB. We may assume that the
IASC/IASB hierarchy is also used by the Romanian regulation (IASB and FASB are
working on a major project of improving the General framework... In the new version,
the hierarchy of quality characteristics is even more pronounced). Therefore, these
enacting terms are said to rely on basic concepts (accrual accounting and going
concern), as well as on qualitative characteristics and their components (In this
context, it is to emphasize that the use of IAS/IFRS in Romania, during 2000 - 2005,
had some tax consequences in entities bound by the Order of the Minister of Public
Finance 94/2001 on the approval of accounting regulations harmonized with the
Fourth European Economic Community and the International Accounting Standards
(Official Gazette 94/2001). Table 1 shows the regulations that imposed explicit
accounting principles in Romania.
Although it may not be representative, the principle presentation order suggests a
slight approach alteration. Thus, the principle of prudence, which ranks first in the HG
704/1993, seems to lose its importance with the diversification of the inspiration
sources used by the Romanian regulator that also relies on IAS/IFRS (Albu et al.,
2010). After 1999, for some entities (especially public entities), the regulations added
three principles: separate accounting evaluation of assets and liabilities, substance
over form and materiality. Starting with 2010, the nine principles apply to all entities,
regardless of their size or presence on the financial market.
The accounting principle
Table 1. Accounting principles evolution in Romania
HG
704/1993
OMFP
403/1999,
replaced
by OMFP
94/2001
~ 789 ~
OMFP
306/2002
OMFP
1752/2005
OMFP
3055/2009
Effective date 1.01. 1994 1.01. 1999 1.01. 2003 1.01. 2006 ian. 2010
Date up to which has been
applied
31.12. 2002 31.12. 2005 31.12. 2005 31.12. 2009
Going concern 3 1 1 1 1
Comparability 2 2 2 2 2
Conservatism (evaluation on a
prudent basis)
1 3 3 3 3
Accrual basis 4 4 4 4 4
Separate accounting evaluation
of assets and liabilities
- 5 5 5 5
Individual recognition, without
any off-setting
The opening balance sheet for
6 6 6 6 6
each financial year must
correspond to the closing balance
of the preceding financial year
5 7 7 7 7
Substance over form - 8 - 8 8
Materiality - 9 - 9 9
3. GENERAL TAX RULES, IN THEIRE RELATIONSHIPS
WITH ACCOUNTING STANDARDS
The tax code does not bring about completely new rules when it tries to set the
notional amount of profit tax. Conversely, the starting point is the accounting