Match of Gross Profit Contribution Margin Within Romanian and German Accounting Systems Under Perspective of IFRS Harmonisation

EasyChair Preprint 5961

Abstract

Gross Profit as a line of Profit and Loss by function under IFRS is a Contribution Margin for covering fixed costs and represents a vital indicator for the health of one business, not only in the manufacturing sector, but also in the service industries. Furthermore, it represents the link between the financial and cost accounting reporting, as also operational result does.

Tanking into consideration the IFRS harmonization, the identification of this contribution margin in each accounting system becomes a must. From this perspective, we may search for and conclude that, there is no clear equivalent in the Romanian accounting system, as the cost accounting in Romania is not given by law. In our argumentation we look around in the German Accounting System, to establish to what extend this contribution margin would be reflected. In the German case, this match may be perfect, but in the Romanian Accounting remains unclear.

Keyphrases: Contribution Margin, Gross Profit, Internal Reporting, Profit and Loss under IFRS

@booklet{EasyChair:5961,
  author    = {Magdalena Alina Ilcuș},
  title     = {Match of Gross Profit Contribution Margin Within Romanian and German Accounting Systems Under Perspective of IFRS Harmonisation},
  howpublished = {EasyChair Preprint 5961},
  year      = {EasyChair, 2021}}