The true and fair view concept in Romania: A case study of concept transferability
Accounting in Central and Eastern Europe
ISBN: 978-1-78190-938-6, eISBN: 978-1-78190-939-3
Publication date: 2 December 2013
Abstract
Purpose
The purpose of this chapter is to examine the transfer of a concept issued in one culture to a different setting, featuring different characteristics from the one in which the concept appeared.
Methodology/approach
Secondary data have been collected by analysing accounting regulations issued after the fall of communism with respect to true and fair view (TFV). Primary data have been collected by conducting eleven semi-structured interviews with representatives of major actors involved in the process of financial reporting. We have further developed and tested two research propositions.
Findings
We find that the perception of TFV in Romania depends firstly on the category of actors. Second, we find that merely including a rule or a concept in the regulations of a certain setting does not automatically mean that they will be applied de facto consistently with their original meaning, issued from a different setting.
Implications
We conclude that concept intertranslatability cannot be assumed under the circumstances investigated in our chapter, with immediate implications for other cases presupposing that concept transfer works, such as International Financial Reporting Standards (IFRS).
Research limitations
The small number of interviews we have conducted may be viewed as a limitation of our study; however, special care was exercised when choosing interviewees, and they are key persons within their organizations, or representative of all the interested parties in the process of financial reporting in Romania.
Originality/value
We contribute to an increasing literature on accounting harmonization and applicability of global standards and concepts in local contexts.
Keywords
Acknowledgements
Acknowledgments
The authors wish to thank the anonymous reviewers, participants and discussants of the 30th congress of the Francophone Accounting Association in Strasbourg (May 27–29, 2009), the 11th IAAER World Congress of Accounting Educators and Researchers (November 4–6, 2010), the 32nd congress of the Francophone Accounting Association in Montpellier (May 9–11, 2011), the American Accounting Association’s International Accounting Section 17th Annual Mid-Year Conference, Tampa, January 26–28, 2011, and Lisa Evans, George Georgiou, Marek Schreuder, Mădălina Gîrbină, Stere Mihai, and Lavinia Olimid for their useful suggestions and comments. Also, we wish to thank Cornelia Lefter for her in-depth suggestions and advice regarding legal matters in Romania. We thank James Mullen for his thorough review of linguistic matters. All remaining infelicities are the sole responsibility of the authors. The authors acknowledge the financial support from research project CNCSIS-UEFISCSU, project number PNII-RU TE_341/2010.
Citation
Albu, C.N., Albu, N. and Alexander, D. (2013), "The true and fair view concept in Romania: A case study of concept transferability", Accounting in Central and Eastern Europe (Research in Accounting in Emerging Economies, Vol. 13), Emerald Group Publishing Limited, Leeds, pp. 61-90. https://doi.org/10.1108/S1479-3563(2013)0000013008
Publisher
:Emerald Group Publishing Limited
Copyright © 2013 Emerald Group Publishing Limited