Cristina Gabriela Cosmulese

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.

The COVID-19 pandemic has had a detrimental effect on the global economy, including the insurance industry. It has forced financial markets to confront a new risk directly related to the virus’s rapid spread. Therefore, the paper aims to determine possible risks or opportunities that insurance companies may encounter, considering both pre- and post-pandemic phases. For this purpose, financial data of 110 Romanian insurance companies for 2016–2022 were analyzed. The topfirme platform was used in the data collection process. Subsequently, based on statistical analysis methods, an econometric model was developed to evaluate the turnover for insurance companies in Romania. When developing the model equation, establishing dependent and independent variables based on the Altman model or the Z-model of bankruptcy prediction was considered. Thus, the findings indicate that employees are the primary factor in these businesses’ proper operation and increased profitability. It is emphasized that turnover directly depends on these variables since the number of employees is a variable around which incomes and expenses fluctuate. Turnover is affected positively or negatively depending on employee productivity and workload, which can lead to increased revenues and decreased costs, or vice versa. Accordingly, an insurance company’s HR department should resolve issues that crop up during the shift to telemedicine, enhance workers’ digital skills, provide them with moral and psychological support, and foster stable working relationships. It should also implement strategies to sustain and raise employee engagement levels, fortify control measures, and alter internal communications.