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  • Author: Adriana Duțescu x
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The enterprise risk profile - a financial and managerial health indicator - comparative study

Abstract

The current paper explores the role that risk profile analysis plays in maintaining the financial and managerial health of companies, within the reorganization process (a phase of insolvency procedure). During the modern era, the attempts to regulate insolvency proceedings, in order to redefine the principles governing them, have made possible a strong international collaboration and have generated a set of reforms designed to effectively address the global phenomenon of insolvency. The main purpose of the new regulations is to give a second chance to the honest debtor and to support him and his/her business in their recovery efforts. Thus, the reorganization of companies becomes an essential attribute of the free, functional market economy, based upon free competition. EU-wide statistics for 2016 show that over 200,000 businesses are annually affected by bankruptcy, which leads to the loss of more than 1.7 million jobs each year. The situation is particularly important for the economies of all countries involved, regardless of the development level. Because of constant business threats, managers should be aware at all times of the economic and financial indicators, seeking for the vulnerable areas of their business and for those with development potential. Identifying a company’s risk profile involves analyzing all the risks that affect the entity (market risk, bankruptcy, liquidity risk, operational risk etc.). A very important factor concerning the reorganization of a company is the tax policy and this paper further explores the subject, by focusing on Romania‘s business patterns, compared to the international framework, based upon the statistics for reorganization procedures, the applicable legal framework, the creditors' policy to encourage recovery etc. The purpose of this study is to highlight the causes that might limit the recovery of companies, during the reorganization procedures in Romania and, as a further research, to analyze the opportunity of developing an economic risk analysis model able to predict the future reorganization of companies. It would represent a barometer of financial and managerial health.

Open access
IFRS 15 – the seventh wave of Norwalk Agreement’s convergence Roadmap

Abstract

Successful accounting convergence Program was outlined in September 2002 when Norwalk Agreement was issued. US FASB and UK IASB agreed to develop high-quality financial reporting standards and pledged to use their best efforts for achieving fully compatible standards. Once achieved, this compatibility is maintained through future work programme’s coordination. The seventh Roadmap’s 2006-2008 objective was establishing Revenue recognition as one of the most complex convergence process’s topics. In this context, in May 2014 appeared IFRS 15 Revenues for contracts with customers. The implementation was set on or after 1 January 2018. Based upon the IFRS Foundation desideratum to advance an exclusive high-class, comprehensible, globally applicable and acknowledged set of financial script guidelines for the public benefit, based on clearly articulated principles, the present study attempts to analyse the role and the place of IFRS 15 related not only to convergence programme’s objectives. Consistent with this approach, we find some opportunities and challenges, also research perspectives in the scope of accomplishing a better understanding of this processes.

Open access
Sustainability of financial professional services through marketing strategy- an empirical research

Abstract

All types of companies providing financial professional services use, formally or informally, marketing principles and tools for the development of their business, in order to straighten their sustainability. By the end of 2009, in Romania, the financial professional services market has had a relatively constant and predictable development, the mandatory nature of these services being their most important promoter. This article presents the results of a survey aimed to highlight the impact of different marketing principles, techniques and tools on the sustainability of financial professional services in accounting and audit nowadays. The research is based on a questionnaire circulated to professionals with the relevant expertise in the financial-accounting domain. The number of responses obtained was considered meaningful, allowing the research results to be extrapolated to the entire studied population. The respondents, whose anonymity was respected, had multiple choice answers for most of the questions and also having the option of opened answers. The main findings of our research are a starting point in providing solutions to improve the sustainability of financial professional services through a coherent, innovative and effective marketing strategy.

Open access
Performance management in the data-driven oragnisation

Abstract

This paper investigates the challenges raised by the “datafication” of the business environment and its role in reshaping future managerial behavior. These challenges arise specifically from new drivers of performance improvement and strategic development, such as cloud computing, big data, and data analytics. We analyze the factors that significantly change the potential influence that information and information asymmetries (“insight”) - resulting from analyzing huge volumes of data - have on organizational competitive advantage. This paper develops a framework to strengthen the value of this insight in an organizational context, and identifies potential areas of future research. The study highlights the conceptual need for, and the role of, analytics as an essential component for deriving the enterprise’s value and performance - from both structured and unstructured data. It also advocates for repositioning knowledge and human expertise in the new data-driven organizational model. It highlights the need for an increasing role for human skills and judgments (“Big Knowledge”) as opposed to a “dictatorship” of data in the new quantified world.

Open access