International accounting Essay Example | Topics and Well Written Essays - 1500 words

Inter subject area accounting - Essay Example macrocosm a member of the EU, Romania in order to comply by the requirements of the membership makes investments for modernization and development of its infrastructure. In the year 2008, Romania showed economic development by an impressive 7.1%, but since then in that respect has been a subside with 1% in 2012. The public sectors act as the buyers of products and services, while the agriculture sector is funded by the EU or developmental banks like the World Bank among others (Doing business in Romania). In the 1990s, Romania started to reform its thrift to make it completely market-based. The government applied reform methods between 2000 and 2007 in order to maintain return and stability in the long run. Although there was economic growth in 2008, there was huge dissimilitude in the income between Romania and the EU. For solution, the government implemented m whatsoever(prenominal) flexible policies to allow firms to use their re sources like jab and peachy more efficiently (Romania Functional Review 64). Legal environment and forms of business Structuring of market-based economy in Romania in the 1990s has stabilized the legal regulations of corporate entities. Business activities can be performed by any individual who has the professional qualifications to execute commercial activities, or by legal bodies who have documental rights and strength to perform business activities. The classes of business entities in Romania as per regulations are commercial companies, regies autonomes, economic interest groups and European economic interest groups, authorised persons, individual enterprises and family enterprises. (Forms of doing business 27) Joint ventures do not enjoy any legal status as stated by Romanian law and they concentrate on particular operation or series of operations. The members contribute funds and other assets for a common goal and procure share of the profit and loss of the ventures. Joint ventures can have shareholders minimum of two with no stipulate to the maximum number. The number of shareholders can be one to 50 in case of limited obligation companies which can include an individual or legal entity (Forms of doing business 27-28). The legal aspect of Romanian study or Labor Code is governed by Law No. 53/2003, collective bargaining apprehension by Law No. 130/1996 and labour conflicts are governed by Law No. 168/1999. Ad per the Labor Code, the terms of collective bargaining agreement that are agreed on at national level can be applied on all employers and employees in Romania in any assortment of business activity (Tax and legal guide.... 3). Capital markets For economic development of any country, an active capital market plays an essential role. The capital market should be such that national assets can be freely mobilized for serving the national economy. On the other hand, it should be able to effectively utilize the available fiscal resources. The ro le of foreign investment is important for maintaining competitive environment in the receiving country. Foreign investments generated by another(prenominal) economy have huge potential to accelerate the GDP. Similarly, in Romania financial sources in the form of outdoor(a) capital like foreign investments pave the way for both quantity and quality development of informal capital, and also allows optimum use of the unused available resources. With the development of capital market in Romania there emerges