<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The purpose of the research in this paper is to examine the regulation and practices of external segment reporting in the Republic of Serbia. The importance of research stems from a great potential usefulness of segment information for investors and creditors. The analysis of regulation suggests that the Republic of Serbia has high-quality and internationally recognized basis of external segment reporting – IFRS 8. However, there is a room for improvement of IFRS 8. The analysis of practices, conducted on a sample of 500 companies, shows that companies in the Republic of Serbia, in general, do not attach great importance to the disclosure of segment information in financial statements. The practices are quite miscellaneous, which is a consequence of the flexibility of IFRS 8, but also an incomplete compliance with IFRS 8. By applying statistical techniques we have examined whether the practices of external segment reporting are related to characteristics of companies, which makes the originality of the paper. We have found that financial institutions disclose more extensive quantitative segment information in relation to other companies in the Republic of Serbia, and that companies with higher assets disclose more extensive segment information. The research indicates that there is a significant room for improving the practices of external segment reporting in the Republic of Serbia. The research results may be useful for regulators of financial reporting and preparers and auditors of financial statements.</p></abstract>

The purpose of the research in this paper is to examine the regulation and practices of external segment reporting in the Republic of Serbia. The importance of research stems from a great potential usefulness of segment information for investors and creditors. The analysis of regulation suggests that the Republic of Serbia has high-quality and internationally recognized basis of external segment reporting – IFRS 8. However, there is a room for improvement of IFRS 8. The analysis of practices, conducted on a sample of 500 companies, shows that companies in the Republic of Serbia, in general, do not attach great importance to the disclosure of segment information in financial statements. The practices are quite miscellaneous, which is a consequence of the flexibility of IFRS 8, but also an incomplete compliance with IFRS 8. By applying statistical techniques we have examined whether the practices of external segment reporting are related to characteristics of companies, which makes the originality of the paper. We have found that financial institutions disclose more extensive quantitative segment information in relation to other companies in the Republic of Serbia, and that companies with higher assets disclose more extensive segment information. The research indicates that there is a significant room for improving the practices of external segment reporting in the Republic of Serbia. The research results may be useful for regulators of financial reporting and preparers and auditors of financial statements.

External Segment Reporting in the Republic of Serbia

University of Kragujevac, Faculty of Economics, Serbia

Economic Themes

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

{"article-title":"External Segment Reporting in the Republic of Serbia"}

The purpose of the research in this paper is to examine the regulation and practices of external segment reporting in the Republic of Serbia. The importance of...

External Segment Reporting in the Republic of Serbia

Publié en ligne: 08 juin 2016

Pages: 155 - 176

Reçu: 26 juin 2015

Accepté: 23 mars 2016

DOI: https://doi.org/10.1515/ethemes-2016-0008

Mots clés
financial reporting, segment reporting, disclosure, IFRS 8, operating segment

© 2015 Vladimir Obradović et al., published by De Gruyter Open

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

External Segment Reporting in the Republic of Serbia

Publié en ligne: 08 juin 2016

Pages: 155 - 176

Reçu: 26 juin 2015

Accepté: 23 mars 2016

DOI: https://doi.org/10.1515/ethemes-2016-0008

Mots clésfinancial reporting, segment reporting, disclosure, IFRS 8, operating segment

© 2015 Vladimir Obradović et al., published by De Gruyter Open

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

Mots clés
financial reporting, segment reporting, disclosure, IFRS 8, operating segment