FACTORS INFLUENCING THE ACCOUNTING INFORMATION REPORTING OF NON-PROFIT ORGANIZATIONS – A THEORETICAL APPROACH
Daniela CIONCA, Luminiţa RUS, Victoria BOGDAN
University of Oradea, Faculty of Economic Sciences, Oradea, Romania
daniela.mirela.cionca@gmail.com
Abstract: In the activity of any economic entity, the efficiency of the use of resources, especially new investments, has a primary place in making decisions to achieve the proposed objectives. The same approach can be found in non-profit entities. The mission of non-profit organizations is not to make any profit but to help others, to protect human and moral values, or to protect the environment. The funds necessary for carrying out the activity do not represent income from the carrying out of the object of activity but primarily represent the participation of civil society and natural or legal persons interested in partnerships with non-profit organizations by offering them donations or sponsorships. The annual reporting of these organizations reveals more and more aspects regarding the efficiency and effectiveness of resources and the way of fulfilling their missions. This research has as its primary objective the identification of users of accounting information provided by non-profit organizations and the factors that can influence how they report their activity. The research directions aimed to find answers regarding the users of accounting information, the mandatory and voluntary information presented in the annual reporting, the availability of disclosure of information to stakeholders, and the increase of trust and sustainability of NGOs. In this regard, the specialized literature and the legislation in the field regarding mandatory reporting information was studied, as well as the transparency of the voluntary ones in response to the management’s responsibility towards the stakeholders in the organization’s mission. The conclusions formulated concern the stakeholders, the influencing factors, and the types of information on which they could present presentation claims in the annual reporting.
Keywords: financial accounting; non-profit organizations; reporting; transparency; accountability
