Models and Ratios in Prospective Accounting, Sources of Creative Information for Business Management

Within the context of the economic globalization and the globalization of capital markets and of the growing competition, it appears that each country has its own practice and its own accounting system. For the user of financial statements, all this information is often contradictory, difficult to c...

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Bibliographic Details
Published in:Economy transdisciplinarity cognition journal 2013-01, Vol.16 (1), p.15
Main Authors: Radu, Florin, Paraschivescu, Marius Dumitru, Bordeianu, Daniela Gabriela, Grosu, Oana, Patrascu, Lucian
Format: Article
Language:English
Subjects:
Accounting
Balance sheets
Decision making
Financial statement analysis
Globalization
Impact analysis
Studies
Online Access:Get full text
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Summary:Within the context of the economic globalization and the globalization of capital markets and of the growing competition, it appears that each country has its own practice and its own accounting system. For the user of financial statements, all this information is often contradictory, difficult to control and especially hard to compare. Accounting is concerned with providing valuable information in order to facilitate the process of decision making. According to the principles of accountancy, 'valuable' information is that which refers to the decision that is to be taken by its users. These decisions vary from user to user. The purpose of this analysis is to highlight the combined effect of decisions regarding investments, operations and funding. At the same time, a parallel analysis of the balance sheet (at the beginning and at the end of a certain extent of time) and the profit and loss account of the same interval, may lead to drawing sounder conclusions than analyzed separately. [PUBLICATION ABSTRACT]
ISSN:1454-5675
2068-7389