Measuring the Impact of First-Time Adoption of International Financial Reporting Standards on the Performance of Romanian Listed Entities

Beginning with 2005, all the entities listed on the European Union regulated markets must prepare consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS). Romanian listed entities compulsorily apply the IFRSs starting with the consolidated financial statements prepared for the financial year 2007. The main objective of this study is to identify and measure the impact of first-time adoption of IFRS on the performance of Romanian listed entities, performance being expressed by means of net income. The results suggest that no clear tendency can be identified regarding changes in net income of listed entities generated by the transition from Romanian accounting regulations to IFRS.