World Bank2013-02-282013-02-282008-12https://hdl.handle.net/10986/12577This 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.en-USCC BY 3.0 IGOACCELERATED DEPRECIATIONACCESS TO FINANCINGACCOUNTACCOUNTABILITYACCOUNTANCYACCOUNTANTACCOUNTANTSACCOUNTINGACCOUNTING CURRICULAACCOUNTING CURRICULUMACCOUNTING FRAMEWORKACCOUNTING POLICIESACCOUNTING PRINCIPLESACCOUNTING PROCEDURESACCOUNTING RECORDSACCOUNTING RULESACCOUNTING STANDARDSACCOUNTING TREATMENTACCOUNTSAUDIT ENGAGEMENTSAUDIT GUIDESAUDIT REPORTSAUDITED FINANCIAL STATEMENTSAUDITINGAUDITING PROFESSIONAUDITING STANDARDSAUDITORSAUDITSBALANCE SHEETBANK ACCOUNTSBANK ASSETSBANKING ASSETSBANKING SECTORBANKING SYSTEMBANKSBONDBOND MARKETBROKERSBUSINESS COMBINATIONSCAPITAL ADEQUACYCAPITAL MARKETCASH OUTFLOWSCENTRAL BANKCIVIL CODECOMMERCIAL BANKINGCOMMERCIAL LAWCOMPANY LAWCOMPLIANCE GAPCONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATIONCORPORATE BONDSCOST ACCOUNTINGCREDIT EXPANSIONCREDIT GROWTHCREDIT INSTITUTIONSCREDIT RISKCURRENT ACCOUNT DEFICITCURRENT ASSETSDEPRECIATIONDERIVATIVESDISCLOSURE REQUIREMENTSDUE DILIGENCEEMPLOYMENTENFORCEMENT MECHANISMSENGAGEMENT LETTERSEXCESS SUPPLYEXCHANGE RATEEXCHANGE RATESEXTERNAL DEBTFAIR VALUEFINANCIAL INFORMATIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL REPORTINGFINANCIAL REPORTING STANDARDSFINANCIAL STATEMENTFINANCIAL STATEMENTSFINANCIAL SYSTEMFISCAL DEFICITFISCAL POLICYFIXED ASSETSFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN EXCHANGE RESERVESFOREIGN EXCHANGE RISKFUND MANAGERSGAAPGLOBAL ECONOMYGOODWILLGROSS DOMESTIC PRODUCTHOLDINGINFLATIONINSTITUTIONAL CAPACITYINSURANCEINSURANCE COMPANIESINSURANCE INDUSTRIESINTEREST RATEINTEREST RATE SWAPSINTEREST RATESINTERNAL AUDITINTERNAL AUDITINGINTERNAL AUDITORSINTERNATIONAL ACCOUNTING STANDARDSINTERNATIONAL BANKINGINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL INVESTORSINTERNATIONAL STANDARDSINVENTORIESINVENTORYINVESTMENT FUNDSINVESTMENT OPPORTUNITIESISSUANCEJOINT-STOCK COMPANIESJOINT-STOCK COMPANYLABOR COSTSLABOR MARKETLAWSLEASE PAYMENTSLEGAL FRAMEWORKLEGISLATIONLIFOLIMITED LIABILITYLIMITED PARTNERSHIPSLIQUIDATIONLIVING STANDARDSLOANLOAN APPLICATIONSLOAN CONTRACTSLOAN DECISIONSLOCAL BANKLOCAL CURRENCYLONG TERM LIABILITIESLOSS STATEMENTMANDATESMARKET CAPITALIZATIONMARKET DISCIPLINEMIGRATIONMONETARY FUNDMONETARY POLICYMUTUAL FUNDSNATIONAL BANKNATIONAL SECURITIESNET ASSETSOUTSTANDING LOANOUTSTANDING LOAN AMOUNTSPARENT COMPANIESPENALTIESPENSIONPENSION FUNDSPENSION SYSTEMPENSIONSPOLICY RESPONSESPRESENT VALUEPRIVATIZATIONPRODUCTIVITYPRUDENTIAL REQUIREMENTSPUBLIC FINANCESPUBLIC REGISTERPUBLIC REGISTRYQUALIFIED AUDIT REPORTQUALITY ASSURANCEQUALITY CONTROLREGISTRY OFFICEREGULATORY FRAMEWORKREGULATORY SYSTEMRESERVESRETAINED EARNINGSSAVINGSSAVINGS BANKSECURITIES LAWSECURITIES MARKETSSHAREHOLDERSSHORT TERM DEBTSOVEREIGN RATINGSSTATUTORY AUDITORSSTATUTORY REQUIREMENTSSTOCK EXCHANGESTOCK MARKETSTRATEGIC INVESTORSSTRUCTURAL ADJUSTMENTSUBSIDIARIESSUPERVISORY BOARDSWAPSTAXTIMELY PAYMENTTRADINGTRANSPARENCYTREATYTURNOVERVALUATIONWAGESWorld Bank10.1596/12577