Metrics

  • citations in SCIndeks: 0
  • citations in CrossRef:0
  • citations in Google Scholar:[]
  • visits in previous 30 days:14
  • full-text downloads in 30 days:14

Contents

article: 1 from 7  
Back back to result list
2020, vol. 68, iss. 5-6, pp. 354-368
Financial reporting practices of Serbian corporate groups: Compliance with global professional regulations
University of Belgrade, Faculty of Agriculture, Department of Agricultural Economics
Keywords: compliance with accounting regulations; consolidated financial statements; business combinations; IFRS; transparency
Abstract
In this study, we analyze compliance with global professional regulations on a sample of Serbian joint-stock parent companies, focusing on the selected disclosures in their consolidated financial statements. Providing relevant and transparent information on the corporate group as a whole, consolidated financial statements are proclaimed to be useful information sources for the existing and potential capital providers of parent companies. Conformity with global professional accounting regulations is seen as an important prerequisite of high-quality financial reporting. However, country and entity-specific factors remain influential, resulting in financial statements of differing features. Lacking intense regulatory and market pressures, the management of Serbian corporate groups appears not to be strongly committed to achieving prime-quality disclosures in consolidated financial statements. We find that the differences in compliance levels of analyzed companies could be explained by the differences in the size of the parent company, its ownership structure, type of auditor and profitability of the group. The results of our research may be useful for investors, corporate managers, regulators and future researchers looking at the quality of consolidated financial reporting.
References
Abad, C., Garcfa-Borbolla, A., Garrod, N., Laffarga, J., Larran, M., Pinero, J.M. (2000) An evaluation of the value relevance of consolidated versus unconsolidated accounting information: Evidence from quoted Spanish firms. Journal of International Financial Management and Accounting, 77(3): 156-177
AICPA (1973) Report of the study group on the objectives of financial statements. http://3197d6d14b5f19f2f440-5e13d29c4c016cf96cbbfd197c579b45.r81 .cf1 .rackcdn.com/ collection/papers/1970/1973_1001_TruebloodObjectives.pdf
APR (2019) Godišnji izveštaj o poslovanju ekonomskih celina u privredi 2018. https://www.apr.gov.rs/upload/Portals/0/GFI%202019/Makroekonomska_saopstenja/Ekonomski_celine_2018.pdf
Ball, R. (2001) Infrastructure requirements for an economically efficient system of public financial reporting and disclosure. Brookings-Wharton Papers on Financial Services, 4: 127-69
Ball, R., Robin, A., Wu, J.S. (2003) Incentives versus standards: Properties of accounting income in four East Asian countries. Journal of Accounting and Economics, 36(1-3): 235-270
Beck, A.K., Behn, B.K., Lionzo, A., Rossignoli, F. (2017) Firm equity investment decisions and U.S. GAAP and IFRS consolidation control guidelines: An empirical analysis. Journal of International Accounting Research, 16(1): 37-57
Bugeja, M., Loyeung, A., Ma, N. (2019) The impact of IFRS 10 on consolidated financial reporting. in: IASB Research Forum 2019, https://cdn.ifrs.org/-/m edia/ feature/events-and-co nferen ces/2019/2019-research - forum /paper-4-the-im pact-of-ifrs-10-on-consolidatedfinancial-reporting.pdf?la=en
Davis, M., Largay, J. (2008) Consolidated financial statements. CPA Journal, (2): 26-31
ESMA (2013) European enforcers review of impairment of goodwill and other intangible assets in the IFRS financial statements. ESMA Report, https://www.esma.europa.eu/sites/default/files/library/2015/ll/2013-02.pdf
European Commission (2012) Regulation No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards. https://eur-lex.europa.eu/legal-content/en/ ALL/?uri=CELEX%3A32002R1606
Fortune (2019) Global 500. https://fortune.com/global500
Francis, J.R., Khurana, I.K., Pereira, R. (2005) Disclosure incentives and effects on cost of capital around the world. Accounting Review, 80(4): 1125-116
Glaum, M., Schmidt, P., Street, D., Vogel, S. (2013) Compliance with IFRS 3and IAS 36-required disclosures across 17 European countries: Company and country-level determinants. Accounting and Business Research, 43(3): 163-204
Global Justice Now (2016) Controlling corporations: The case for a UN Treaty on transnational corporations and human rights. Supporter briefing, https://www.globaljustice.org.uk/sites/default/files/files/resources/ controlling_corporations_briefing.pdf
Goncharov, I., Werner, J., Zimmermann, J. (2009) Legislative demands and economic realities: Company and group accounts compared. International Journal of Accounting, 44: 334-362
Healy, M.P., Palepu, G.K. (2001) Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1-3): 405-440
IASB (2018) IFRS 3 business combinations. http://eifrs.ifrs.org/eifrs/bnstandards/en/IFR S3.pdf
IASB (2018) Conceptual framework for financial reporting. http://eifrs.ifrs.org/eifrs/bnstandards/en/framework.pdf
IASB (2012) IFRS 12 Disclosure of interests in other entities. http://eifrs.ifrs.org/eifrs/bnstandards/en/IFRS12.pdf
IASB (2014) IAS 27 Separate financial statements. http://eifrs.ifrs.org/eifrs/bnstandards/en/IAS27.pdf
IASB (2014) IFRS 10 Consolidated financial statements. http://eifrs.ifrs.org/eifrs/bnstandards/en/IFRS10.pdf
IFAC (2010) Tools and resources to support the development of the accounting profession. www.ifac.org
IFRS Foundation (2018) Analysing the use of IFRS Standards. https://www.ifrs.org/use-around-the-world/use-of-ifrs-standards-by-jurisdiction/#analysis
IFRS Foundation (2020) Business combinations: Disclosures, goodwill and impairment. Discussion paper, https://cdn.ifrs.org/-/media/project/goodwill-and-impairment/goodwill-and-impairment-dp-march-2020.pdf
Jubb, P., Haswell, S., Langfield-Smith, I. (1999) Company accounting. Boston, MA: Cengage Learning
Leuz, C., Nanda, D., Wysocki, P. (2003) Earnings management and investor protection: An international comparison. Journal of Financial Economics, 69: 505-527
Malinić, D. (2007) Politika dobiti korporativnog preduzeća. Beograd: Ekonomski fakultet
Malinić, D. (2008) Finansijsko izveštavanje kao determinanta kvaliteta korporativnog upravljanja. Ekonomika preduzeća, vol. 56, br. 1-2, str. 17-27
Malinić, D., Milićević, V., Glišić, M. (2014) Interdependence of enterprise size and vitality in Serbian economy. Ekonomika preduzeća, vol. 62, br. 7-8, str. 323-347
Mian, S., Smith, C. (1990) Incentives associated with changes in consolidated reporting requirements. Journal of Accounting and Economics, 13: 249-266
Ranković, J. (1994) Konsolidovani godišnji zaključak. Beograd: Ekonomski fakultet
Savić, B. (2011) Specificnosti konsolidovanog finansijskog izveštaja. Računovodstvo, 55(9-10): 35-47
Spasić, D. (2018) Do Serbian companies provide relevant disclosures about goodwill?. Economic Themes, 56(1): 127-138
Spasić, D., Dencic-Mihajlov, K. (2014) Transparency of financial reporting in Serbia: Regulatory framework and reporting practices. Procedia Economics and Finance, 9: 153-162
Vučković-Milutinović, S. (2019) Analysis of modifications to auditor's opinion on financial statements of listed companies in Serbia. Ekonomika preduzeća, vol. 67, br. 3-4, str. 212-223
World Bank (2015) Report on the observance ofstandards and codes (ROSC) on accounting and auditing: Update - Republic of Serbia. http://documents1.worldbank.org/curated/en/557921479710152064/pdf/M arch-2016-Serbia-ROSC-Report-finalapprovedMoF.pdf
 

About

article language: English
document type: Original Scientific Paper
DOI: 10.5937/EKOPRE2006354V
received: 23/04/2020
published in SCIndeks: 25/11/2020