CONVERGENCES AND DIVERGENCES WITH RESPECT TO THE FINANCIAL INFORMING OF PUBLIC INSTITUTIONS

The process of European integration has been a challenge for the accounting of Romanian public institutions. Professional accountants had to handle new concepts and issues of professional reasoning emerged from the International Accounting Standards for the Public Sector. The present study analyses the possibility of applying the above mentioned standards within the context of the current public institutions financing. The productive research we have undertaken has helped identify the deficiencies in accounting practices with respect to financial informing and suggest alternatives to meet the actual informational needs of public institutions so that the presented information to be relevant, credible, and comparable. Key words: financial statements, cash basis accounting, accrual basis accounting, patrimonial result, result of the budget execution I. Foreword The economic, financial, political, legal and social environment that various accounting systems operate in generates a variety of accounting practices. This triggers difficulties with the process of financial communication. Public institutions must face the problem of interpreting the financial statements which are based on directives that are valid in another country. In order to overcome this difficulty the International Accounting Standards for the Public Sector are the best international practice for financial reporting for publi