Accounting reasoning evolution: a case study of Romania

This research empirically investigates the extent to which accounting principles and judgments were applied by accounting professionals in Romania, while identifying the current practice. The findings show that accounting professional reasoning is positively associated with the development degree of the economy, having in mind the case of an emergent country with a history characterised by centralisation and inhibition of professional reasoning. Compared to accounting regulations - which in Romania are a mix of rules and principles complying with the International Financial Reporting Standards - the research reveals a lower level of accounting judgments applied in practice. One conclusion is that in Romania, and maybe at the European scale, institutional changes that affect the professional expertise are required. The selection of accounting regulations should be made with caution as they should correspond and/or be adapted to national values, companies' behaviour and individual expertise and beliefs, even if the process would be delayed in time.