ACCOUNTING ADJUSTMENT IN THE CONTEXT OF EUROPEAN FUNDS - CHALLENGES AND SOLUTIONS THROUGH SIMULATION

Abstract: The implementation of European funds is a critical pillar in Romania’s economic and social development, yet it often faces significant accounting challenges, particularly during the pre-financing and accounting reconciliation phases. This study addresses the difficulties encountered in the process of adjustment and accounting reconciliation within projects funded by European funds, through a simulation. By examining the scenario of incomplete recording of amounts received as pre-financing, the paper explores the accounting adjustment methods necessary to ensure compliance and financial transparency. The results emphasize the importance of careful planning and the implementation of rigorous verification and accounting adjustment procedures, which are essential for the successful management of European funds. The adopted perspective encourages a proactive and integrated approach, suggesting that adaptability and accounting precision are key in overcoming financial obstacles and achieving the objectives of projects with European funding. Keywords: European Funds, Prefinancing, Accounting Reconciliation, Accounting Adjustment, Challenges and Solutions, Simulation, Financial Compliance JEL Classification: H81, C63, M41, M49, D61