Accounting and Auditing : Romania
This assessment of accounting and auditing practices in Romania is part of a joint initiative by the World Bank and International Monetary Fund (IMF) to prepare Reports on the Observance of Standards and Codes (ROSC). The assessment focuses on the...
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Language: | English en_US |
Published: |
Washington, DC
2013
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Online Access: | http://documents.worldbank.org/curated/en/2008/12/16411579/romania-report-observance-standards-codes-rosc-accounting-auditing http://hdl.handle.net/10986/12577 |
Summary: | This assessment of accounting and
auditing practices in Romania is part of a joint initiative
by the World Bank and International Monetary Fund (IMF) to
prepare Reports on the Observance of Standards and Codes
(ROSC). The assessment focuses on the strengths and
weaknesses of the accounting and auditing environment that
influence the quality of corporate financial reporting, and
includes a review of both statutory requirements and actual
practice. It uses International Financial Reporting
Standards (IFRS) and International Standards on Auditing
(ISA) as benchmarks and draws on international experience
and best practices. This assessment updates the findings of
the previous accounting and auditing ROSC conducted in
Romania in 2002 and published in 2003. It is important to
note that there has been significant growth in the credit
environment including significant increases in the granting
of foreign currency denominated credit. The proportion of
loans denominated in foreign currency has risen recently to
50 per cent of all loans granted. Provisions to convert
outstanding loan amounts into local currency under certain
thresholds often exist in foreign currency denominated loan
contracts. These provisions aim to address the potential
credit risk arising from the foreign exchange risk borne by
the borrowers. While the National Bank of Romania is
monitoring the situation closely and requiring higher bank
reserves for loans denominated in foreign currency (to curb
the growth of such loans), these aspects could provide
significant challenges to the National Bank of Romania in
future years. |
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