Original scientific paper

https://doi.org/10.1080/1331677X.2015.1084888

The influence of accounting regulation simplification on the financial reporting of micro entities – the case of Croatia

Ivana Mamić Sačer orcid.org/0000-0001-9125-8637
Nikolina Dečman orcid.org/0000-0001-5167-4070
Ivana Sever orcid.org/0000-0002-1597-3652

Abstract

The specifics of the business of micro entities highlight, in particular, the complexity of the problem of accounting regulations for this segment of the economy. The paper starts from the basic research question of whether the simplification of accounting regulations is necessary or not, particularly for those micro entities where ownership and management functions are integrated into the same person. In order to achieve the research objectives, the effects of accounting regulations simplification on decision-making processes in micro entities were tested. Empirical research has confirmed that the simplification of accounting regulation is justified, because it would have effects on the cost reduction, while the information quality base will not be diminished.

Keywords

financial reporting; accounting standards; accounting directives; accounting regulation simplification; micro enterprises; Croatia

Hrčak ID:

171547

URI

https://hrcak.srce.hr/171547

Publication date:

20.12.2015.

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