Romania’s integration into the European Union raised the necessity of adapting Romania’s accounting settlements to the European Directives and the to the International Financial Reporting Standards, in order to achieve the standardization of working accounting methods. This is accomplished...

In elaborating the paper, we started from the idea of the necessity of knowing the reasons that determined the reconsideration of the importance of accounting information, in order to ensure survival, performance and durability of businesses in the context of the new challenges launched by the...

There are many studies confirming the theory according to which the decisions of the users of the accounting information depend on the quality of this very information, namely its intrinsic quality, as well as its impact through publication. We undertake to test the extent to which the intrinsic...

From a juridical point of view, an entity is considered in difficulty in the situation of payments’ ceasing that occurs when it can not face its due debts with the available funds. In the case of a financial depreciation, the short term liabilities are superior to the assets. The negative net...

The approach by comparison establishes the limits of the shares market value by analyzing the prices, normally paid for shares to the competing entities to the one evaluated. In order to select the comparison base, the motivations of the parties involved in the transaction must be identified....

The Economic Value Added formally translates the theoretical notion of excess profit (also known as residual income). Its use is so firmly entrenched in applied corporate finance and management accounting that its name is often used as a noun for denoting the concept of excess profit itself....

This paper presents a new way of measuring residual income, originally introduced by Magni (2000a, 2000b, 2003). Contrary to the standard residual income, the capital charge is equal to the capital lost by investors. The lost capital may be viewed as (a) the foregone capital, (b) the capital...

The International Financial Reporting Standars have re-opened the discussion on the financial consideration of the contributions of the partners of the cooperative societies. The concept of share capital is joined to the juridical dimension of the same one. To characterize the share capital of...

This paper tells the story of a student of economics and finance who meets a couple of alleged psychopaths, suffering from the ‘syndrome of Zelig’, so that they think of themselves to be experts of economic and financial issues. While speaking, they come across the concept of excess profit....

Practitioners and some academics use potential dividends rather than actual payments to shareholders for valuing a firm’s equity. We underline the differences between the two methods and present some arguments supporting the thesis that firm valuation with potential dividends overstate the...