Financial reporting responsibilities in the context of EU, international and new domestic regulatory framework

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Financial statements are the most important resources of information for all economic stakeholders upto the government. Most of them are absent from the reporting companies. Corporate accountants and independent external auditors, being guided by inspiring technical and ethical principles and standards, are expected to provide true and fair presentations in financial statements. Because of growing number of financial reporting scandals, produced mostly under pressure of management or its coalition with influential external stakeholder, the states have undertaken additional law intervenes in financial reporting system. The same with amended relevant Directives of EU which, inter alia, stressed the imperatives of quality of financial statements, independence of accountants and auditors, collective responsibility of members of the administrative, management and supervisory bodies for financial statements, and organising of effective system of public oversight for statutary auditors and audit firms. The Serbian new Company Law contains good regulatory frame for some of those claims, but not for all of them. We tried in this article to make suggestions how to use that frame or supplement it through laws on accounting and auditing, and company's rules on accounting and financial reporting.