Veronica Grosu

Revenue recognition is a very complex area due to user interest in this metric and can even lead to errors and fraud in its understanding. The difficulties of revenue recognition are well known to practitioners because, even if the principles and standards are stable, economic conditions may require new experiences, adaptive knowledge, and flexibility. Therefore, thinking about how to apply the new IFRS 15 standard is more important than ever as the transition to the new standard takes place. In this context, this study aims to evaluate the way external auditors understand how implementing IFRS 15 will probably affect business performance and profitability, and to identify the main problems and obstacles that could come up during that process. In this sense, a quantitative study was conducted using a survey of auditors working for Big Four companies during 2021–2022. To address these problematic aspects of revenue disclosure under the standard, the study’s findings look into how external auditors perceive the complexity of IFRS 15, the openness of their professional judgment, and the anticipated advantages of engagement activities. In addition, the literature review identified business sectors that demonstrated a significant impact on revenue recognition as a result of the implementation of IFRS 15.

One of the industries with the fastest development is the hospitality and tourism (HoReCa) sector. However, there is also a growing trend in this sector to evade some state taxes. Despite promises that digitalization will reduce tax evasion, this practice nevertheless is a serious threat to the economy and the state. This study aims to process a comprehensive model for screening and risk assessment of tax fraud in the HoReCa sector in Romania. In this sense, an empirical study was conducted using an econometric model to detect tax evasion in the HoReCa sector in Romania, based on a sample of 50 firms for each sub-sector (hotels, restaurants, cafes), analyzing the period 2018–2022. The dependent variable of the model was the tax evasion risk indicator, calculated as the difference between the average financial ratios of each firm and the average for the entire sector. The results show that the leverage ratio has the strongest positive impact on the tax evasion risk indicator. The fixed asset turnover ratio and the accounts receivable turnover ratio also have a significant impact, indicating false sales reports or collection irregularities. The solvency ratio and the immediate liquidity ratio show positive effects on the risk of tax fraud, while the net rate of return is the only one with a negative effect, suggesting that profitable entities are less prone to tax evasion. The proposed model provides a solid basis for identifying high-risk companies directing tax authorities to improve supervision in the HoReCa industry. The findings also highlight the importance of further automating tax reporting systems to reduce the risks of evasion.

Type of the article: Research Article

Understanding the impact of traditional financial factors and intangible assets on the value of listed companies is increasingly important amid rapid changes driven by the recent pandemic, energy, and geopolitical crises, alongside emerging economies’ shift toward knowledge-based models. This study aims to assess how traditional financial indicators and the intensity of intangible assets influence the market value of firms listed on the Bucharest Stock Exchange (BVB), using Tobin’s Q as the valuation measure. Out of an initial population of 84 companies, 56 were selected based on data completeness and consistency, covering the period 2019–2023, a timeframe marked by significant economic shocks. A multiple linear regression approach was employed, with Tobin’s Q as the dependent variable and firm size, intangible assets, leverage, liquidity, and profitability as predictors. Data exhibit significant dispersion and asymmetry, particularly in profitability and liquidity, indicating varied shock absorption capacities across firms. The regression model explains nearly 60% of the variation in firm value and meets all diagnostic criteria. Intangible assets emerged as the most influential positive factor, followed by firm size, while leverage negatively affects firm value. Liquidity and profitability showed no statistically significant effect when controlling for other variables. These results suggest that Romanian investors place growing emphasis on knowledge-based resources and firm scale, while penalizing high leverage. The study enriches existing literature and offers practical guidance for managers to prioritize investments in intangible capital over mere expansion of tangible assets.