Abstract:

Many specialists recognize the significant role of the small and medium-sized entities (SMEs) in today’s economies all over the world. Their impressive growth during the last decades and their economic impact (in terms of GDP contribution or generated turnover) has turned them into a favorite subject for debates among economists, both practitioners and theorists. One of the most debated aspects about SMEs is the rules applied for their financial reporting. Currently, there are two major approaches on this matter: the IFRS for SMEs issued by the International Standard Board (IASB) and the projects initiated by the European Commission. This paper aims at analyzing the Romanian regulations on the financial reporting for SMEs by comparing them with the main provisions of the 4th European Accounting Directive and the IFRS for SMEs.