THE EFFECTS OF GLOBALIZATION ON FINANCIAL REPORTING

The process of globalization has gained great significance over the last decades due to the changes in international trade and business between countries, leading to the spread of multinational companies and foreign cross-border investments. These global changes have been the premises for introducing new information flows that allow foreign investors to find new ways to understand better the business. Regarding the financial reporting, the world experienced a major change, the most obvious feature being the adoption of IFRS. The process of globalization has led the companies to comply with financial reporting standards in a uniform way due to the positive effects that follow the implementation. The purpose of this paper is to present the evolution of economic globalization by capturing the impact it has on financial reporting.