FINANCIAL PERFORMANCE OF AN ENTITY IN THE EUROPEAN AND INTERNATIONAL ACCOUNTING STANDARDS

This article is based on the idea that a powerful, competitive and functional economy, capable to face European challenges has to be performant. I approached the term of performance thinking of management value first. An enterprise creates value for its shareholders when the profitability of the invested capital is greater than the cost of different financial sources used. In other words, it is not enough to have accounting profit, in order to create value. After that, I analyzed performance in terms of efficiency and effectiveness, the combination between those two resulting in the level of performance of an enterprise.