FINANCIAL RATIO ANALYSYS – A COMPARATIVE SETTING ON ACCOUNTING DATA AND DISTORTIONS CAUSED BY THE IFRS CONVERGENCE PROCESS

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.

Keywords: financial ratios, analysis, IFRS, US GAAP, Romanian accounting

JEL Classification: M41

Volume: 69, Issue: 2

Pages: 87 - 97

Publication date: August, 2017

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/69208gencia&mates.pdf

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