Current Challenges Driven by the Management Approach (II)

Author:Univ. Prof. Costantin ROMAN, Ph. D., Mihaela MOCANU, Ph. D. Student

JEL:M 41

DOI:

Keywords:IFRS, management approach, segment reporting, asset impairment, reporting of risks

Abstract:
Although it is not a completely new vision on financial reporting, the management approach is a development of the traditional procedures for the preparation of financial statements and gains in significance in the international regulation process of IASB. The management approach requires the management to include the information delivered by internal accounting in the financial reports presented to investors and other external users. It results that the entity is presented through „the eyes of the management”. The objective of the present paper is to identify and comment upon the most significant financial reporting areas in which the management approach can be implemented. The identified areas are: segment reporting, recognition and measurement of financial instruments, reporting of risks, asset impairment and accounting for intangible assets and for property, plant and equipment. Moreover, the paper emphasizes a few consequences of implementing the management approach by the audited entity on the financial audit process. \r\n\r\n

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