Preliminary communication
https://doi.org/10.17818/DIEM/2021/1.14
DE JURE HARMONIZATION OF FINANCIAL REPORTING FOR LISTED COMPANIES: EVIDENCE FOR SELECTED CEE COUNTRIES
Dijana Perkušić
orcid.org/0000-0002-5690-5306
; Accounting and Finance, Department of Professional Studies, University of Split, Split, Croatia
Ivica Pervan
orcid.org/0000-0003-1987-7702
; Accounting and Auditing Department, Faculty of Economics, Business and Tourism, University of Split, Split, Croatia
Abstract
Globalization of business and free flow of capital resulted in strong demand for comparable financial reports worldwide. An important element of achieving de facto harmonization of financial reporting is de jure harmonization, i.e. harmonization of regulatory requirements on the country level. Although more than 100 countries have a requirement for use of IFRS (International Financial Reporting Standards) for listed companies, de facto harmonization is still an ongoing process. De facto harmonization is affected by many influential factors, among which de jure harmonization represents one of the most important factors. For the purpose of the study, the authors developed an index of de jure harmonization (IDJH) based on the EU regulatory framework and evaluated its value for 5 CEE countries (Croatia, Bosnia & Herzegovina, Montenegro, Slovenia and Serbia). Empirical findings reveal significant differences in de jure harmonization, related to the country's status in relation to EU integration processes.
Keywords
de jure harmonization; financial reporting; CEE countries
Hrčak ID:
261902
URI
Publication date:
7.9.2021.
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