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Impact of IFRS on Romanian Accounting and Tax Rules for Fixed Tangibles Assets

Author

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  • Costel ISTRATE

    (Alexandru Ioan Cuza University of Iaºi, Romania)

Abstract

Romanian accounting and tax rules have evolved, after 1990, from an almost complete connection to a more and more clear de jure disconnection. One reason for this development is the influence of the international financial reporting standards. Analyzing the relationship between accounting and taxation, we find some interesting evolutions in the field of tangible fixed assets. The current Romanian accounting standards include many detailed rules taken directly from the IAS 16 (the initial recognition and measurement, the revaluation, the depreciation of fixed assets), while the tax law doesn’t follow the same way. Since 2004, the Romanian Tax Code states explicitly that the accounting depreciation is separate from the tax depreciation. However, we found, for Romanian entities listed on Bucharest Stock Exchange, that the accelerated method of depreciation (a tax one) is used sometimes in accounting. More than 80% of the listed entities revalue buildings and we could think this is for tax reasons.

Suggested Citation

  • Costel ISTRATE, 2012. "Impact of IFRS on Romanian Accounting and Tax Rules for Fixed Tangibles Assets," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 11(2), pages 243-263, June.
    • Handle: RePEc:ami:journl:v:11:y:2012:i:2:p:243-263
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    Citations

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    Cited by:

    1. Andreea Mihaela MARIN, 2017. "The Perception of the Romanian Economic Environment Regarding the Adoption of the International Financial Reporting Standards," North Economic Review, Technical University of Cluj Napoca, Department of Economics and Physics, vol. 1(1), pages 174-178, October.
    2. Ioan Pop & Szilveszter Fekete & Dan Dacian Cuzdriorean, 2013. "Relationship Between Accounting And Taxation In Romania: A Behavioral Analysis," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(15), pages 1-7.
    3. Adela Deaconu & Dan Dacian Cuzdriorean, 2016. "Accounting and the state in post-communist Romania," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 5(1), pages 59-93.
    4. Nadia ALBU & Ioana PALARIE, 2016. "Convergence of Romanian accounting regulations with IFRS. A longitudinal analysis," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 14(138), pages 634-634, June.
    5. Claudia-Elena Grigoras-Ichim & Lucia Morosan-Danila, 2020. "The Evolution of the Limitation of the Application of the Accounts Function by Romanian Companies," Book chapters-LUMEN Proceedings, in: Carmen NÄ‚STASE (ed.), 16th Economic International Conference NCOE 4.0 2020, edition 1, volume 13, chapter 13, pages 139-147, Editura Lumen.
    6. Mirela PAUNESCU, 2018. "Exploratory study on accounting and taxation of virtual currencies by Romanian companies," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 16(150), pages 239-239.
    7. Diana-Andreea, TRAISTARU, 2014. "The Application Of International Financial Reporting Standards In Romania: Advantages And Main Problems," Management Strategies Journal, Constantin Brancoveanu University, vol. 26(4), pages 271-277.

    More about this item

    Keywords

    accounting vs. taxation; RAS vs. IFRS; depreciation; revaluation;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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