The true and fair view concept in Romania: A case study of concept transferability

Purpose The purpose of this chapter is to examine the transfer of a concept issued in one culture to a different setting, featuring different characteristics from the one in which the concept appeared. Methodology/approach Secondary data have been collected by analysing accounting regulations issued after the fall of communism with respect to true and fair view (TFV). Primary data have been collected by conducting eleven semi-structured interviews with representatives of major actors involved in the process of financial reporting. We have further developed and tested two research propositions. Findings We find that the perception of TFV in Romania depends firstly on the category of actors. Second, we find that merely including a rule or a concept in the regulations of a certain setting does not automatically mean that they will be applied de facto consistently with their original meaning, issued from a different setting. Implications We conclude that concept intertranslatability cannot be assumed under the circumstances investigated in our chapter, with immediate implications for other cases presupposing that concept transfer works, such as International Financial Reporting Standards (IFRS). Research limitations The small number of interviews we have conducted may be viewed as a limitation of our study; however, special care was exercised when choosing interviewees, and they are key persons within their organizations, or representative of all the interested parties in the process of financial reporting in Romania. Originality/value We contribute to an increasing literature on accounting harmonization and applicability of global standards and concepts in local contexts.