Definitions and conceptual clarification regarding the accounting policies

The financial statements of the economic entities represent the basic information source for obtaining a general view of the entity position on the market and its financial performances and they consist in the balance-sheet, exercise result account and cash-flow statement while the accounting policies represent a series of accounting concepts regarding the transparency of the activity as well as of the financial statements of each economic entity so that to get a accurate picture of its financial and patrimony situation. However, the national regulations do not specify the minimum contents of the accounting policies and thus, in most cases, the economic entities of Romania do not have a guideline of the accounting policies in written form, but taking into account that the accounting policies must be approved by the entity administrator we can conclude that they should be found in a document.