IFRS ADOPTION AND ANALYSTS FORECASTS ACCURACY IN ROMANIA: A CASE STUDY
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Authors:
• Mihaela IONASCU, email: mihaela.ionascu@gmail.com, Afiliation: Academy of Economic StudiesPages:
• 31|38 -
Keywords: analysts’ forecast accuracy, IFRS adoption in Romania, case study, OMV Petrom SA
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Abstract:
This paper seeks to explore the impact of International Financial Reporting Standards (IFRS) adoption in Romania on analysts’ forecasts accuracy by means of a case study on one of the best performers on the Romanian market: OMV Petrom SA. The IFRSs are considered high quality accounting standards that are expected to increase transparency and decrease forecasts errors. Accordingly, this paper analyzes the characteristics of forecasts accuracy of earnings computed both under IFRS and local General Accepted Accounting Principles (GAAP). The results show that IFRS based forecasts tend to be more accurate, confirming the international trends.
