Influences on accounting: a longitudinal analysis for an eastern European country

This research identifies the factors that influenced Romanian accounting during three historical stages, which cover the period from 1990 onwards. We developed a framework taking into account the political, legal, and professional factors, to whom were associated drivers and metrics specific to the analysis proxy, fair value accounting. Considering the evolution of fair value accounting during the surveyed period, we conclude that in terms of regulations, Romanian accounting follows the system promoted by International Accounting Standard Board and the European Directives. This is due to the relation between a fair value-based accounting system and market globalisation and hence the need for reliable measurements in the financial statements. In addition to the external influences, we provide evidence for the development of the commercial system, a relative fiscal relaxation with favourable influence on accounting options and fair value use, and legal provisions that fostered the development of financial institutions, the capital market in particular, and financial instruments that may support the future use of fair value in individual accounts. Other internal factors, such as the accounting profession, have laid the foundation for a better understanding of the European and international accounting concepts and principles and a stronger acknowledgement of a principle-based accounting model.