Flow-based Economic Operations Representation
Professor Lucian Patrascu
Department of Economics,
"George Baritiu" University
Abstract: The profit and loss account
shows whether a company is operating or not, as far as obtaining a positive
result out of its activity is concerned, but does not allow the provision of
information related to actual flows conferring trust from non-specialists
point of view: entry and exit of cash availabilities as a result of the
The result contoured by the profit and loss account relies on standardized
principles and methods, on conventions originating from the accrual
accounting and therefore, we can face one case in which two companies with
the same availabilities and similar employment thereof, may obtain different
results, because of various methods of evaluation of revenues and charges.
The variety and complexity of issues related to the good management of the
company’s treasury create a wide field of analysis and debate for
specialists in the field, especially because this topic practically relates
to the activities conducted by all economic agents. Most of the users of
accounting information are interested in the fluidity of the company’s
business and especially in its ability to provide a suitable rotation speed
The accounting information provided by accrual accounting and focused mainly
on profit is unable to provide a suitable response to such request.
This is how the need to operate the accounting information is necessary,
which provides the treasury flow knowledge as correspondent of patrimonial
flow transiting the company and with immediate impact on liquidities.
The cash flow statement discloses the flow statement which, as a difference
from the profit and loss account, provides a projection over the actual
possibilities of the company to financially support and face the payment of
debts with actually available resources and not with future resources.
Brief Biography of the Speaker:
•Assistant Professor, Department of Economics, „George Baritiu”
University of Brasov, Romania.
•He has published a total of 2 books. Has participated in 3 national
research projects, has published 25 various papers in conference proceedings
or refereed journals (7 papers have been published abroad), has participated
with 3 papers at the WSEAS Conferences.
•Ph.D. in Economy, Academy of Economic Studies of Bucharest, (2008);
•Licensed in Economy, Faculty Economic Sciences, specialization Accounting
Information Systems, at the „George Baritiu” University of Brasov, Romania
•Licensed in Law, Faculty of Law, specialization Law, at the „George Baritiu”
University of Brasov, Romania(2007);
•Assistant Professor, Department of Economics at „George Baritiu” University
of Brasov, Romania;
•Financial accounting manager at „George Baritiu” University of Brasov,