INFLUENCE OF FINANCIAL REPORTING STANDARD APLLICATION UPON THE OUTCOMES OF CREDIT INSTITUTIONS

Credit institutions in Romania include: banks, savings and loan banks in the housing field, credit unions and mortgage loan banks. Since 2012, to all these from the accounting perspective, the International Financial Reporting Standards have been applied. The present paper shall envisage the main causes that have led to major banks’ great losses in our country. On one hand, the causes are connected to the inefficiency of banks’ operation performance and on the other hand to the impact of the transition from national accounting norms applicable to credit institutions to the International Financial Reporting Standards. The differences between national and international norms refer to the assessment of financial instruments at depreciated costs using the actual interest rate, the assessment of financial instruments at their fair values and the adjustments due to hyperinflation, the assessment of value adjustments and provisions related to loans etc.