Financial Reporting in the Furniture Industry

• Author: Baba M. C.
• Pages: 179-186

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 10 (59) No. 2 - 2017

Financial Reporting in the Furniture Industry

Mirela Camelia BABA1

Abstract: The furniture industry is one of particular importance to Romania, as the superior

valorization of wood represents a strategic objective at country level (Marginean, 2015). The

assessment of the financial position and performance of the economic entities belonging to

this sector is of particular importance not only to the national economy, but also to the

interests pursued by management, shareholders, commercial partners and creditors. This

study focuses on investigating and analysing the financial reports of 15 companies in the

furniture industry in Romania. The analysis is based on data collected between 2008 and

2016.

Key-words: financial statements, performance, financial position, furniture industry

1. Introduction

Financial reports represent tools through which information on how economic

entities operated in the past can be obtained.

The financial statement of an entity is highlighted by the accounting

information present in the financial statements, namely by reflecting the financial

position in the balance sheet and of the financial performance, reflected in the profit

and loss account. Any economic decision taken at the level of an entity implies a

strict and fair analysis of all the economic and financial events and transactions, as

well as of data provided by the financial statements.

2. Methodology

The presentation and analysis of the financial position and performance is a widely

developed subject at all academic levels and in specialists’ practice. The interest in

this matter concerns both Romanian and foreign authors, specialists in finance,

accounting and financial management.

The present paper presents an analysis of the evolution and dynamics of the

financial position and of the financial performance reflected in the financial

1 Transilvania University of Braşov, mirela.baba@unitbv.ro