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An Exploratory Analysis Of Accounting Estimates Disclosure Practices. The Case Of Romanian Private Listed Companies

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  • Réka Melinda TÖRÖK

    (Accountancy, Doctoral School of Economics and Business Administration, West University of Timisoara, Timisoara, Romania)

Abstract

The research aimed to identify and evaluate the level of disclosure of accounting estimates in the annual reports of companies listed on the Bucharest Stock Exchange (BVB) on the premium segment. Excluding the banking sector and suspended companies from the total premium companies, 55 companies were identified in the sample. The companies’ annual reports for 2018-2022 were analyzed to identify accounting estimates and any changes in these estimates. For each business, a score of 1 was assigned for changes in estimates and 0 for non-change. Using qualitative research methods, the set of data on accounting estimates was obtained by examining public information in the notes to the annual financial statements. The analysis of descriptive statistics was carried out to interpret the data, classifying companies according to turnover, total assets, average number of employees, and net result. Companies were also clustered into three categories, and the analysis highlighted industries with varying levels of disclosure. These findings provide insights into the level of disclosure of accounting estimates among Romanian companies listed on BVB, with stakeholder involvement and policy development for sustainable economic development.

Suggested Citation

  • Réka Melinda TÖRÖK, 2024. "An Exploratory Analysis Of Accounting Estimates Disclosure Practices. The Case Of Romanian Private Listed Companies," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 33(1), pages 362-369, July.
    • Handle: RePEc:ora:journl:v:33:y:2024:i:1:p:362-369
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    References listed on IDEAS

    as
    1. Nicoleta Farcane & Elena Iordache & Victoria Bogdan, 2010. "Romanian Practitionners And The Use Of Estimates In Romanian Business Environment," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(12), pages 1-12.
    2. Colin Ferguson & Poh‐Sun Seow, 2011. "Accounting information systems research over the past decade: Past and future trends," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 51(1), pages 235-251, March.
    3. Jeremy Bertomeu, 2020. "Machine learning improves accounting: discussion, implementation and research opportunities," Review of Accounting Studies, Springer, vol. 25(3), pages 1135-1155, September.
    4. Kexing Ding & Baruch Lev & Xuan Peng & Ting Sun & Miklos A. Vasarhelyi, 2020. "Machine learning improves accounting estimates: evidence from insurance payments," Review of Accounting Studies, Springer, vol. 25(3), pages 1098-1134, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    qualitative analysis; annual reports; descriptive statistics; accounting estimates.;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis

    Statistics

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