<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The establishement of uniform rules and principles for the recognition and evaluation, requirements for presentation and disclosure of elements of the financial statements provides global comparability, harmonisation and high quality financial reporting. Taking into account the simpler requirements of small and mediumsized entities in relation to large entities, the International Accounting Standards Board (IASB) has created a financial reporting standard to meet the needs and capabilities of small and medium-sized entities with no public accountability, which, although the reduced volume and simplified requirements, does not diminish the quality or transparency of financial reporting. The author aims to point to the justification of the need to establish a standard for medium and small entities, analyzes its basic characteristics and examines the relations with full standards and EU regulations. Mandatory application of the standard for small and medium entities in the Republic of Serbia is justified, but other conditions are also required for its successful implementation, which are not provided due to the alternative use of national legislation that is incomplete and vague, and inconsistent with the standards, concludes the author.</p></abstract>

The establishement of uniform rules and principles for the recognition and evaluation, requirements for presentation and disclosure of elements of the financial statements provides global comparability, harmonisation and high quality financial reporting. Taking into account the simpler requirements of small and mediumsized entities in relation to large entities, the International Accounting Standards Board (IASB) has created a financial reporting standard to meet the needs and capabilities of small and medium-sized entities with no public accountability, which, although the reduced volume and simplified requirements, does not diminish the quality or transparency of financial reporting. The author aims to point to the justification of the need to establish a standard for medium and small entities, analyzes its basic characteristics and examines the relations with full standards and EU regulations. Mandatory application of the standard for small and medium entities in the Republic of Serbia is justified, but other conditions are also required for its successful implementation, which are not provided due to the alternative use of national legislation that is incomplete and vague, and inconsistent with the standards, concludes the author.

Accounting Regulation of Financial Reporting By Small and Medium-Sized Entities with No Public Accountability

Independent advisor-auditor at State Audit Institution, Belgrade, Republic of Serbia State Audit Institution, Belgrade,

Economic Themes

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The establishement of uniform rules and principles for the recognition and evaluation, requirements for presentation and disclosure of elements of the...

Accounting Regulation of Financial Reporting By Small and Medium-Sized Entities with No Public Accountability

Published Online: Dec 30, 2016

Page range: 425 - 447

Received: Dec 21, 2016

Accepted: Oct 03, 2016

DOI: https://doi.org/10.1515/ethemes-2016-0021

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.