The relevance of financial reporting on the performance of quoted Romanian companies in the context of adopting the IFRS

摘要

This paper investigates, in an associative study, the value relevance of the comprehensive income in relation to that of net income, as a consequence of the application of IFRS in Romania, in companies whose securities are admitted for transactions on a regulated market, started with the fiscal year 2012. The paper also analyses in an empirical manner the influence of the Big 4 companies in the direction of improving the relevance of the reporting of the net income and of the comprehensive income for the investors on the financial market, the quality of audit being acknowledged, according to specialised literature, as a means for rendering the accounting figures more credible. The informational usefulness of the net income (pre-IFRS, 2011, and post-IFRS, 2012) and of the comprehensive income (post-IFRS, 2012) is examined on a sample of 65 companies quoted in the Bucharest Stock Exchange. The results of the empirical study confirm that the two categories of accounting results are significantly associated with the share price, reflecting an increased value relevance and usefulness for the investors on the Romanian financial market, after the adoption of the international accounting norms.