Review article
https://doi.org/10.46458/27121097.2021.PI.62
NEW INSTITUTIONAL ACCOUNTING FRAMEWORK IN THE FUNCTION OF FINANCIAL REPORTING TRANSPARENCY IN BOSNIA AND HERZEGOVINA
Josipa Grbavac
; Faculty of Economics, University of Mostar, Mostar, Bosnia and Herzegovina
Igor Živko
orcid.org/0000-0001-6603-3110
; Faculty of Economics, University of Mostar, Mostar, Bosnia and Herzegovina
Marko Barbarić
orcid.org/0000-0003-3032-0964
; Faculty of Economics, University of Mostar, Mostar, Bosnia and Herzegovina
Abstract
Transparency represents the openness of the business entity and the ease of access to the action itself. It is this segment that is essential for external users who should have unhindered and timely access to information of finance and non-financial nature in order to be able to look at the riskiness of the business entity. Therefore, it is essential that regulation improves the concept of transparency through the adoption of regulations, rules and other procedures in order to make information available to different stakeholders. Improving the quality of financial reporting should bring benefits in reducing the asymmetry of information between managers and investors, reducing risk andthe cost of financing businesses and other benefits that authors have tried to present through the prism of different beneficiaries of financial statements. The aim of the paper is to point out the new institutional accounting framework for the purpose of improving the transparency of financial reporting in the Federation of Bosnia and Herzegovina. The authors bring the latest updates of the institutional accounting framework in the Federation of Bosnia andHerzegovina and its possible impact on improving the quality of financial reporting through the availability and transparency of financial information.
Keywords
accounting framework; financial reporting; transparency; register of financial statements; benefit for users;
Hrčak ID:
280186
URI
Publication date:
30.12.2021.
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