Accountancy
(British English) or accounting (American English) is the
process by which financial information about a business is
recorded, classified, summarized, interpreted, and communicated.
Auditing, a related but separate discipline, is the process
of an independent review of financial statements in order
to express an opinion as to the fairness and adherence to
the Generally Accepted Accounting Principles (GAAP).
After
the fall of Communism, Romania saw two periods of reform of
the Romanian accounting system.
First
period - 1994 to 1999 - when the Romanian Finance Ministry
was helped by French experts, a new accounting system was
implemented in Romania, the double-entry book-keeping system.
This system involves making at least two entries for every
transaction: A debit in one account, and a corresponding credit
in another account. The sum of all debits should always equal
the sum of all credits. This provides an easy way to check
errors.
The
second period - after 1999 - when the Ministry was helped
by Scottish experts, the system was opened towards a better
accounting system and there was harmonization of the legislation
with the European Directives and the International Standards
(IAS-IFRS). |
