LAW ON ACCOUNTING IN THE REPUBLIC OF SERBIA AND APPLICATION OF IAS/IFRS

Danijela M. Anđelković; Dragomir Dimitrijević

doi:10.5937/ptp2502130A

Authors

Danijela M. Anđelković University Business Academy in Novi Sad, Faculty of Economics and Engineering Management, Novi Sad, Serbia https://orcid.org/0000-0003-2076-4721
Dragomir Dimitrijević University of Kragujevac, Faculty of Economics, Kragujevac, Serbia https://orcid.org/0000-0001-8049-9451

DOI:

https://doi.org/10.5937/ptp2502130A

Keywords:

law on accounting, accounting regulations, financial statements, EU Directive 34

Abstract

In accordance with its legal accounting framework, the Republic of Serbia has adopted IAS/IFRS as the sole financial reporting framework for all entities, while taking into account certain formal specificities of medium-sized and small enterprises. The International Accounting Standards Board (IASB) played a key role in this approach. These initial observations aim to highlight the quality of financial statements as a result of the application of the current accounting legislation in the Republic of Serbia. The issue of comparability and harmonization of financial statements is particularly relevant to medium-sized and small enterprises, as well as to companies whose securities are listed on the stock exchange. Research findings suggest that the application of the existing legal framework— specifically the mandatory and exclusive use of IFRS—has become a limiting factor in the quality of financial statements and, consequently, their representational value. The thematic scope of this paper involves the application of a methodology based on the collection of secondary data from relevant domestic and international sources. Through processing and analysis, this information enables an assessment of the current state of financial reporting quality. From the perspective of financial information users—primarily investors and creditors—the second part of the paper presents research findings and proposes measures to improve accounting regulations with the aim of enhancing the quality of financial statements.

References

Alexander, D. & Nobes, C. (2010). Finansijsko računovodstvo – međunarodni uvod [Financial accounting – international introduction]. Zagreb: Mate

Alexander, D., Britton, A. & Jorissen, A. (2005). International Financial Reporting and Analysis, Second Edition, London: Thomson

Аnđelković, D. (2020). The Significance of Financial Statements for Financial Menagement of Hotel Companies, In: The Fifth International Scientific Conference: Tourism in function of development of the Republic of Serbia, (pp. 43–58). University of Kragujevac: Faculty of Hotel Management and Tourism in Vrnjačka Banja

Аnđelković, D., & Vujić, М. (2019). The Impact of Service users’ satisfaction on Financialperfomance of Hotel enterprises, In: The Fourth International Scientific Conference: Tourism in function of development of the Republic of Serbia, (pp. 414–431). University of Kragujevac: Faculty of Hotel Management and Tourism in Vrnjačka Banja

Bromowich, M. (2001). The ACCA/BAA Distinguished Academic 1999 Ledture – Angels and Trolls: the ASB’s Statement of Principles for Financial Reporting. The British Accounting Review, 33(1), pp. 47–72

Barone, E., & Kothari, J. (2012). Financial accounting – international indroduction. Beograd: Data Status

Barth, E. M., Landsman, R. W., Lang, M., & Williams, C. (2012). Are IFRS and US GAPP-based accounting amounts comparable? Journal of Accounting and Economics, 54(1), pp. 68–93

Bernard, P., & Roland, P. (2016). Finance Reconsidered: New Perspectives for a Responsible and Sustainable Finance, Leeds: Emerald Group

Cvitanović, P., L. (2018). Managing accounting and financial aspects of marketing, Journal of Accounting and Management, 8(2), pp. 83–94

Dečman, N. (2016). The use of non-accounting information in the management of a company-Croation esperiences, An Enterprise Odyssey. In: International Conference Proceedings (pp. 533–540). Zagreb: University of Zagreb, Fakulty of Economics and Business

Dmitrović, Šaponja Lj., Petković., D. & Jakšić, D. (2012). Računovodstvo [Accounting]. Subotica: Ekonomski fakultet

Domanović, M. В. (2010). Balanced Scorecard – Possibilities and effects of application. Kragujevac: Ekonomski fakultet

Dragojevic, D., Miljevic, T. & Milojevic, M. (2012). New Key IFRS International Financial Reporting Standards, Socioeconomica – The Scientific Journal for Theory and Practice of Socioeconomic Development, 1(2), pp. 201–212

EU Directive 34 (2013). The EEC Official Journal, 182/19, Brussels

Gauzès, J., P. (2017). Assessing the wider impact of financial reporting standards. In: 40th European accounting association annual congress (pp. 10-12). Valencia: EFRAG

Mamić, S.I., Dečman, N., & Sever, I. (2015). The influence of accounting regulation simplification on the financial reporting of micro entities – the case of Croatia, Economic Research-Ekonomska Istraživanja, 28(1), pp. 593–607

Magretta, M. (2002). Why Business Models Matter. Harvard Business Review, 80(5). pp. 3–8

Palea, V. (2018). Financial reporting for sustainable development: Critical insights into IFRS implementation in the European, Accoiting Forum, 42(3), pp. 248–260 https://doi.org/10.1016/j.accfor.2018.08.001

Škrinjar, R., Bosilj‐Vukšić, V., & Indihar‐Štemberger, M. (2008). The impact of business process orientation on financial and non‐financial performance. Business process management journal, 14(5), pp. 738–754

Zakon o računovodstvu i reviziji [Law on Accounting and Auditing], Službeni glasnik RS, br. 46/06, 111/09

Zakon o računovodstvu i reviziji [Law on Accounting], Službeni glasnik RS, br. 62/13. 73/19. 44/21

Vunjak, N., & Ostojic, S. (2011). Strategija operativnog planiranja na nivou banke [Operative planning strategy at the bank level]. Anali Ekonomskog fakulteta u Subotici, 47(25), pp. 39–48

Vuković, R., Vukić, M. N. & Sesar, D. (2020). Non-financial reporting as part of sustainability accounting with the examples of good practices. Journal of Accounting and Management, 10(1), pp. 41–58