IDEAS home Printed from https://ideas.repec.org/a/ddj/fserec/y2016p417-422.html
   My bibliography  Save this article

The Management of Disinvestment Decision and its Impact on Financial Statements

Author

Listed:
  • Moisescu Florentina

    (Dunarea de Jos University of Galati, Romania)

  • Persicov Oana

    (Dunarea de Jos University of Galati, Romania)

Abstract

The political and economic context of the world noticeably influenced, in recent years, the economic development of corporations, causing sometimes resounding failures, forcing businesses to act with caution. In this context, senior management decisions are oriented towards achieving financial stability, even if this implies a stagnation in terms of the financial result and not a constant profit growth. This paper examines the impact of fixed alienation on the entity's financial results, the importance of rational management strategie that lead to the creation of new sources of investment and the timing of disinvestments by applying the Altman model to the Romanian energy companies quoted at BVB. It has been found that the incorrect clasification of assets held for sale, changes the structure of the expenses incurred with the amortization said tangible assets because at the moments of their classification as assets held for sale, assests cease to be amortized. In the case of the failure of the Retail Plan, the recording of the accounting depreciation stops and the asset is being over-evaluated.

Suggested Citation

  • Moisescu Florentina & Persicov Oana, 2016. "The Management of Disinvestment Decision and its Impact on Financial Statements," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 417-422.
    • Handle: RePEc:ddj:fserec:y:2016:p:417-422
    as

    Download full text from publisher

    File URL: http://www.rce.feaa.ugal.ro/images/stories/RCE2016/MoisescuPersicov.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mateja Jerman & Gordana Ivankovič, 2011. "The Evolution Of Financial Standards For Small And Medium- Sized Entities "," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 58, pages 13-24, november.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. S. Susela Devi & R. Helen Samujh, 2015. "The Political Economy of Convergence: The Case of IFRS for SMEs," Australian Accounting Review, CPA Australia, vol. 25(2), pages 124-138, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ddj:fserec:y:2016:p:417-422. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gianina Mihai (email available below). General contact details of provider: https://edirc.repec.org/data/fegalro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.