ACCOUNTING POLICIES ON TREASURY AND FINANCING PICTURE

An entity’s treasury is its strong point due to how there will be directed the monetary and financial flows available to it depends, ultimately, the financial situation and the result of the exercise.The informational need of users that are interested to present the evolution of an entities’ financial position during a financial exercise is not satisfied by the information from the balance sheet or the profit and loss account, that is why, the information referring to the cash -flows are useful because they provide a basis for assessing the entity’s ability to generate cash, as well as the possibility to use these cash-flows. A modern accounting requires recourse to accounting policies and improved estimation techniques, as well as accounting options, to an acceptable extent. 1. Treasury - key information through which the entity finances its work and ensures its continuity, by it we determine indicators needed by management and financial analysis, both short term, to measure solvency, as well as long-term to measure financing needs. All operations that the entity realizes are found immediately and forward as cash flow. The entities' treasury ensures the evidence for all operations relating to investment securities, monetary liquidness, other treasury values and treasury credits. In the narrow sense, treasury includes debit balances in bank and investment securities that can become liquidness, and broadly it means all cash or availability of the entity. Treasury analysis is nothing but short-term financial equilibrium analysis when comparing a relatively constant size (working capital) with a fluctuating size (working capital requirements) and maintaining the balance of cash flows is a prerequisite for sustainability of the entity. Net Treasury expresses the correlation between working capital and need working capital, reflecting the financial situation of the company both medium and long term, as well as short-term and the financial balance is achieved when the two proportions are equal. Registering a net treasury shows the enterprises' success in economic life and the profitable placement opportunity of monetary liquidness to strengthen its market position. Maintaining financial balance is a permanent objective of financial policy and it can be considered achieved when the year ends with a positive treasury. It should be underlined the fact that:  financial balance is a prerequisite for carrying out a profitable activity;  financial balance is achieved by adjusting a wide range of imbalances that manifest in the current activity of the enterprise. Positive net treasury (WC>NWC) reveals that the company has signed a financial year with a monetary surplus materialized in monetary liquidness (house,