Financial Accounting Interferences which Affect the Authentic Image of the Results and Performances of the Private Companies from the Construction Industry

Abstract

The ascending trend of the economy stimulated the rise of the volumes of the construction activities. In the conditionof prognosed increase of investments, based on public funds and grants, it’s needed perfecting the financialmechanisms which should assure the selection of the most competent companies for awarding the tender procedureson the constructions works.The accounting synthesis documents (balance sheet, profit and loss account), as instruments for reflection of theperformances have the task of ensuring an authentic image of the actives, of the results and of the financial capacityof the bidders. The way of reflecting some accounting and financial operations like the good execution warrantee,formed from retains from the revenues realized by the contractors, repartition of the results at the end of the financialyears; have direct implications in the distortion of the results at the end of the financial years and distortion of theinformation regarding the financing capacity of the bidders.As well, the modifications brought to the Fiscal Code, starting from 2007 according to regulation of the VAT byintroduction of the “inverse tax” and of the payment approach of the income tax, starting from 2008, will havenegative effects over the financial liquidity and over the capacity of financing.