Study on the Costs Induced by Accounting and Tax Law Changes
Author:
Lecturer Adrian Doru BÎGIOI, Ph. D.
JEL:
H21, H25, G38
DOI:
Keywords:
professional accountant, amending legislation, additional costs, responsibility, fees
Abstract:
Changes in accounting and tax laws require continuous adaptation of tax and accounting policies of economic entities to the new regulations, which solicits continuous improvement of the expertise of professional accountants involved in various specific tasks, such as, for example: book-keeping, preparing tax returns or even financial audit. Based on these considerations, this study proposes to answer some questions related to possible additional costs generated by adapting companies’ accounting and tax systems to the new regulations. To answer these questions statistical methods were used, such as surveys of professional accountants, and representatives of the management bodies of economic entities. After centralizing results, the paper shows that, in general, additional costs resulting from changes in accounting and tax legislation are supported by professional accountants, and, to a small degree, by the entities surveyed. Among the factors generating these results, the paper emphasises the lack of provisions in the service or employment contracts regarding fees (salaries) renegotiations in respect to legislative changes, but also to increasing responsibility of accounting professionals for the activities developed within their tasks.\r\n\r\n