<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Quality of financial reporting is the precondition for the effective functioning of capital market due to the globalization of business. In the countries of Eastern and Central Europe, during the period of socialism, accounting and preparation of annual accounts was adapted for needs of planned economy. Today, it is necessary to work on harmonization national with international legislation. Also, they need to promote a culture of financial reporting, because economic entities do not understand the essential role and importance of financial reporting for business potential. In this paper, we consider Slovenia’s, Macedonia’s and Serbia’s normative framework of financial reporting system, in order to give the assessment of the current situation and pointed out the possible directions of improvement of this process. The comparative analysis of legal and professional solutions, which regulates financal reporting system in these countries, we learned some inconsistencies of their legislation in relation to international regulations, especially in the part of financial reporting for small and micro entreprises. In Serbia and Macedonia, perceived insufficient engagement of of professional organizations and bodies, which requires the reaction of the country in terms of defining and monitoring the implementation of regulations governing the conditions and responsibility for performing accounting and auditing work. This would allow business entities to access financial sources under favourable terms, raising their competitive advantages to quality financial information within financial reports, as well as further development of entrepreneurial activity, which is the generator of the most developed economies in the world.</p></abstract>

Quality of financial reporting is the precondition for the effective functioning of capital market due to the globalization of business. In the countries of Eastern and Central Europe, during the period of socialism, accounting and preparation of annual accounts was adapted for needs of planned economy. Today, it is necessary to work on harmonization national with international legislation. Also, they need to promote a culture of financial reporting, because economic entities do not understand the essential role and importance of financial reporting for business potential. In this paper, we consider Slovenia’s, Macedonia’s and Serbia’s normative framework of financial reporting system, in order to give the assessment of the current situation and pointed out the possible directions of improvement of this process. The comparative analysis of legal and professional solutions, which regulates financal reporting system in these countries, we learned some inconsistencies of their legislation in relation to international regulations, especially in the part of financial reporting for small and micro entreprises. In Serbia and Macedonia, perceived insufficient engagement of of professional organizations and bodies, which requires the reaction of the country in terms of defining and monitoring the implementation of regulations governing the conditions and responsibility for performing accounting and auditing work. This would allow business entities to access financial sources under favourable terms, raising their competitive advantages to quality financial information within financial reports, as well as further development of entrepreneurial activity, which is the generator of the most developed economies in the world.

Normative Framework as the Basis for Quality Financial Reporting in the Republic of Slovenia, the Republic of Macedonia and the Republic of Serbia

University of Niš, Faculty of Economics, Serbia

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Quality of financial reporting is the precondition for the effective functioning of capital market due to the globalization of business. In the countries of...

Normative Framework as the Basis for Quality Financial Reporting in the Republic of Slovenia, the Republic of Macedonia and the Republic of Serbia

Published Online: Jun 08, 2016

Page range: 129 - 154

Received: Nov 17, 2015

Accepted: Feb 19, 2016

DOI: https://doi.org/10.1515/ethemes-2016-0007

Keywords
Financial reporting, financial report, IFRS, normative framework, accounting, auditing

© 2015 Dragana Ranđelović et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Normative Framework as the Basis for Quality Financial Reporting in the Republic of Slovenia, the Republic of Macedonia and the Republic of Serbia

Published Online: Jun 08, 2016

Page range: 129 - 154

Received: Nov 17, 2015

Accepted: Feb 19, 2016

DOI: https://doi.org/10.1515/ethemes-2016-0007

KeywordsFinancial reporting, financial report, IFRS, normative framework, accounting, auditing

© 2015 Dragana Ranđelović et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Financial reporting, financial report, IFRS, normative framework, accounting, auditing