PRELIMINARY ACCOUNTING WORKS FOR THE ESTABLISHMENT OF FINANCIAL STATEMENTS

Abstract

The preparation of financial statements is a complex process of aggregation of data and accounting information in the perspective of establishing economic and financial indicators. The adoption of a uniform set of preliminary accounting work for the closure of the current financial exercises is the only way for romanian companies to ensure that their financial situations are reliable, and on this basis, the users can make the best decisions. According to IASB Framework, the objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions: managers, shareholders, prospective investors, financial institutions, suppliers, customers, employees, competitors, general public, governments. The complexity of the accounting works preceding the financial statement preparation is determined by the large volume of theoretical and practical knowledge that can be influenced by the following factors: different accounting policies, accounting estimates, professional judgment, verifiability, measurability, fraud and error. The main objective of this scientific paper is to highlight the importance of preliminary accounting works for the annual financial statements establisment, focusing on the presentation of their chronological evidence.

Keywords

• preliminary accounting works
• financial statements
• inventory
• trial balance
• financial result for the period