Regulatory framework for financial reporting in Serbia

Abstract

This paper deals with matters related to the regulatory framework for financial reporting in Serbia. For Serbia, as a country which is still in the process of transition and has not yet implemented the necessary reforms and created market institutions, financial reporting and accounting reforms are one of the key items in the process of creation of the new market environment for business operations of firms, investments, faster economic growth and efficient functioning of the public sector and financial regulatory systems. The regulatory framework of financial reporting in Serbia includes consideration of the development and results of models and standards for the disclosure of financial information in Serbia (which has been a country in transition since 2001) which implies help from international donors. The paper emphasizes the directions and needs for further reforms and development of accounting and auditing in Serbia, while the results of the so-far reforms have been evaluated with a view and criteria of future needs and needs for the improvement of corporate governance standards. That approach enabled observation of plans, actions and proposals for further reforms in terms of revealing and publicizing financial information in financial reports in Serbia. Speaking of the regulatory framework, a very significant aspect is the aspect of timeliness of financial reporting and audit reports in Serbia which has to be analyzed based on contemporary literature and using the appropriate methodological framework. In fact, this model must be attested in practice with a view to making recommendations in the area of quality improvement of timely disclosure of financial information in Serbia. Although timeliness is undoubtedly a very important aspect of financial reporting, it will not be addressed in greater detail by the authors of this paper. The authors of this paper mainly deal with the issue of regulatory financial framework in Serbia. In the concluding part, authors analyze the regulatory framework of financial reporting with all its advantages and disadvantages, while also offering suggestions for its improvement in the future.