Developing Accounting and Audit in a Transition Economy: The Romanian Experience

Posted: 13 Sep 2001

See all articles by Aileen E. Beattie

Aileen E. Beattie

Institute of Chartered Accountants of Scotland

Neale George King

Institute of Chartered Accountants of Scotland - Romanian Accountancy Development Programme

Ana-Maria Cristescu

Institute of Chartered Accountants of Scotland - Romanian Accountancy Development Programme

Pauline Weetman

University of Strathclyde - Department of Accounting and Finance

Abstract

The new Romanian accounting and auditing laws took effect in 1999. This paper investigates and evaluates the phase of development which started in 1996, comparing the outcome of that development with the experience of some other transition economies. Recognising that the move to the market economy was a primary driver of change, the paper considers the economic and social context of Romania and the potential conflicts arising where the growing importance of the global market, political and international developments influence the shaping of strategy in matters of accounting. A strategy shaped in this way must also cater for the specific needs of the many small companies in transition economies. Key to the reform process in Romania has been the recognition that a controlled phasing in of change, accompanied by training, is necessary to give the reform process a chance to succeed; however this leads to tensions arising between professional associations, which wish to become self-regulatory, and governments, who need to retain a measure of control to ensure that all elements of the reform are in harmony. The paper concludes that the accounting developments from 1996 avoided some of the pitfalls experienced earlier in other transition economies and also shortened some of the development process by making changes in parallel rather than in sequence.

Keywords: Romania, Eastern Europe, Transition economies, Accounting change

JEL Classification: G38, M41, M49, P29, P39

Suggested Citation

Beattie, Aileen E. and King, Neale George and Cristescu, Ana-Maria and Weetman, Pauline, Developing Accounting and Audit in a Transition Economy: The Romanian Experience. Available at SSRN: https://ssrn.com/abstract=274298

Aileen E. Beattie (Contact Author)

Institute of Chartered Accountants of Scotland ( email )

CA House
21 Haymarket Yards
Edinburgh EH12 5BH
United Kingdom
+44 131 347 0261 (Phone)
+44 131 347 0105 (Fax)

Neale George King

Institute of Chartered Accountants of Scotland - Romanian Accountancy Development Programme

Edinburgh EH12 5BH
United Kingdom

Ana-Maria Cristescu

Institute of Chartered Accountants of Scotland - Romanian Accountancy Development Programme

Edinburgh EH12 5BH
United Kingdom

Pauline Weetman

University of Strathclyde - Department of Accounting and Finance ( email )

Curran Building
100 Cathedral Street
Glasgow G4 0LN
United Kingdom
+44 (0)141 548 2944 (Phone)
+44 (0)141 552 3547 (Fax)

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