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Financial Ratio Analysys - A Comparative Setting On Accounting Data And Distortions Caused By The Ifrs Convergence Process

Author

Listed:
  • GENCIA Adrian

    (Universitatea de Vest din Timisoara)

  • MATES Dorel

    (Universitatea de Vest din Timisoara)

Abstract

The ongoing convergence process from national standards to the IFRS unfolds presenting a number of comparability issues that impact the investors' decision making process. One such aspect is the comparability of financial ratio results in a cross cultural environment. Starting from a preset model of income statement and balance sheet ratios, the current paper aims to highlight how regulation differences affect financial performance and position interpretation. The conceptual framework is set against economic figures, testing its validity under real business circumstances. While the result of the comparison is expected to be inconclusive, this approach points out towards a statistical solution.

Suggested Citation

  • GENCIA Adrian & MATES Dorel, 2017. "Financial Ratio Analysys - A Comparative Setting On Accounting Data And Distortions Caused By The Ifrs Convergence Process," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 69(2), pages 87-97, August.
    • Handle: RePEc:blg:reveco:v:69:y:2017:i:2:p:87-97
    as

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    File URL: http://economice.ulbsibiu.ro/revista.economica/archive/69208gencia&mates.pdf
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    References listed on IDEAS

    as
    1. Donal Byard & Ying Li & Yong Yu, 2011. "The Effect of Mandatory IFRS Adoption on Financial Analysts’ Information Environment," Journal of Accounting Research, Wiley Blackwell, vol. 49(1), pages 69-96, March.
    2. Peter Harris & William Stahlin & Liz Washington Arnold & Katherine Kinkela, 2013. "Gaap Vs. Ifrs Treatment Of Leases And The Impact On Financial Ratios," Review of Business and Finance Studies, The Institute for Business and Finance Research, vol. 4(2), pages 97-106.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial ratios; analysis; IFRS; US GAAP; Romanian accounting;
    All these keywords.

    JEL classification:

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

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