LUCRĂRI ŞTIINŢIFICE, SERIA I, VOL.XV (3) 39 IMPACT OF GLOBALIZATION ON FINANCIAL REPORTING PETRU ŞTEFEA 1 , CARMEN LĂCĂTUŞU 1 1 West University of Timisoara, Timisoara, Romania, petru.stefea@rectorat.uvt.ro, cornelgabriel.nita@gmail.com Abstract: The future of financial globalisation is one of the biggest questions of our times. How the companies from Romania will align to IFRS requirements and what involves the normalization process in terms of business is an opened subject nowadays. The purpose of this article is to draw into attention the differences on financial terms and the impact of alignment of the current romanian regulations stipulated by OMF 3055/2009 to IFRS. The impact will refer to how will be influenced the decisions of the users of financial information if different regulation apply. In order to quantify the impact of the differences between the accounting treatments, I have made an analysis on Balance Sheet and Profit and Loss statements of the company Alfa. I have presented only the results after mapping the accounts in the Balance Sheet and Profit and Loss forms and interpreted how the decisions of the users of financial information are influenced in both cases. After the analysis performed I have concluded that the decisions of investors, banks and other users of financial statements change due to different results obtained by using the mentioned frameworks. Different approaches conclude to different results, so the purpose of normalization is that the user, wherever he is, takes the same decision based on figures which reflect a fair view of reality. Key words: globalization, financial reporting, financial statements, decisional process INTRODUCTION The recent wave of globalization has generated an intense debate. The potential benefits of financial globalization will likely lead to a more financial interconnected world. The globalization process requires a more powerful information. Thomas R. Robinson presents in the book called International Financial Statement Analysis the constraints regarding the information supplied by financial statements:  The need to have the desired characteristics; for example, to be relevant, information must be provided on time. This requires considerable time to obtain assurance that the information is free from errors;  Cost of providing the information: benefit derived from information should exceed the cost of providing them;  Omissions of financial statements: the financial statements omit non-quantifiable information (creativity, innovation, workforce competence of a company, which are not directly presented in the financial statements). (Robinson Th., Greuning H., Henry E., Broihahn M, 2008) These constraints are generated by a number of obstacles, among which we can mention:  The conflict which exist sometimes between the qualities required to accounting information by various categories of users around the world;  Difficulties in selecting the information considered to be significant and relevant by various categories of users at international level;  Difficulties in evaluating the “benefit” which will be generated by the information;  Frequent updates in financial reporting framework, which adversely affect the comparability of the information presented at international level. (Cotleţ D., Megan O., Pistol I., 2007)