Abstract:
Corporate governance represents a complex set of relationships, regulated at the legislative level and built among all persons interested in the corporation. The concept of corporate governance is the overall management of the entity by implementing an effective control system, thereby ensuring that the business is run in the interest of investors and stakeholders. The aim of this paper is to examine different models of corporate governance applied in local practice and how this governance is reflected in financial reporting. The requirements regarding the presentation of information related to corporate governance in the management report, as a component of the annual financial reporting, are stipulated in the Law of Accounting and Financial Reporting. In particular, in the management report drawn up and presented annually by all public interest entities, should be included information about the corporate governance code applied by the entity, with reference to the source of the publication; the degree of compliance of the entity with the provisions of the corporate governance code, and if it deviates - the explanation regarding the parts of the code that it does not apply and the reasons for not applying; the entity's internal control and risk management systems, in relation to the financial reporting process, etc. The results of this paper highlight the way the information related to corporate governance is disclosed in the management report drawn up and presented by the public interest entities. The information presented in the chapter dedicated to corporate governance, as well as in the other sections of the management report, facilitates the users of the financial statements with additional information helping them to assess correctly the activity of the public interest entity and to adopt optimal decisions. CZU: 657.6:334.784(478); JEL: G00; G30
Description:
ERHAN, Lica; Valentina PALADI and Eduard VIERU. The Concept of Corporate Governance and its Role in Financial Reporting. Online. In: Modern Finance from the Perspective of Sustainability of National Economics: International Scientific Conference: Proceedings, November 22-23, 2024. Chişinău: [S. n.], 2025 (SEP ASEM), pp. 103-107. ISBN 978-9975-168-18-2 (PDF). Disponibil: https://doi.org/10.53486/mfsne2024.12