EIRP Proceedings, Vol 6 (2011)

Abstract

Between corporate governance and IFRS there is a causal relationship. Financial reporting is based
on managerial accountability. Corporate governance is the economic branch who studies how companies can
become more efficient through the use of institutional structures such as: incorporation, organization and
legal framework. This branch is limited, in most cases, to studies on how shareholders can motivate
executives to benefit the company through their efforts, resulting - finally - dividends. Starting from the
global nature of the current crisis, we have considered as being necessary to point out its effects on the
financial reporting and, implicitly, on the requirements for the corporate governance consolidation in order to
ensure the economic and financial stability desired. The macro-economic context favored the start of the
crisis, but the analysis made by experts showed other reasons for this, out of which some of the most
important are the corporate governance weaknesses and the insufficient means for protection against risks.
We consider that these are reasons which ask for an objective analysis and a correct assessment of the
regulatory process but also of the practice in the area corroborated with an invitation for a responsible
behavior both of the entities management but also of the representatives of the accounting profession so much
involved in the correctness of the accounting reporting and therefore in the financial health of the entities.