Transition, Vol. 26 No. 52, 2025.
Review article
MANAGERIAL AND ACCOUNTING REPORTING ON THE SUSTAINABLE OPERATIONS OF COMPANIES IN THE EU AND BOSNIA AND HERZEGOVINA
Vinko Belak
Abstract
The EU Commission has adopted the European Sustainability Reporting Standards (ESRS)
for companies subject to the Corporate Sustainability Reporting Directive (CSRD), which is
considered an important step in the transition to a sustainable EU economy. The European
Sustainability Reporting Standards (ESRS) will gradually replace the Non-Financial
1 Prof.dr.sc. Vinko Belak , Sveučilište u Zagrebu, Ekonomski fakultet, e-mail: belakvinko@gmail.com
2 Urednički kolegij časopisa je recnenzirao i kategorizirao rad kao NAUČNI- PREGLEDNI RAD
2
Reporting Directive (NFRD). EU countries have recently harmonized their national laws with
this directive. In accordance with the Directive, companies from Bosnia and Herzegovina that
generate more than EUR 150 million in net income in the EU and have a branch or daughter
company will also have an obligation to report on the company's sustainable operations from
2028. Appreciating the positive trends that are happening in the EU, Bosnia and Herzegovina
tries to immediately get involved in the development of reporting on sustainable business for
the simple reason that auditing and accounting standards also oblige companies to report on
unlimited sustainable business. In other words, the obligation to report on „going concern“
(unlimited sustainable business) already exists, only it has been further emphasized and
significantly expanded by the adoption of the EU Corporate Sustainability Reporting
Directive (CSRD). Namely, auditing and accounting standards oblige management to make an
assessment of its entity's ability to continue with „going concern“ operations when compiling
financial statements.
The Corporate Sustainability Reporting Directive introduces the concept of double materiality
and requires companies to report on the significant effects of operations on society and the
environment, on the one hand, and how environmental and social issues affect or may affect
cash flow, balance sheet and profit. This connects the non-financial and financial reporting of
the company.
The news is that companies will have the obligation to report on environmental, social and
management information related not only to their operations but also to their value chain.
Therefore, the goal of this paper is to describe the obligation and highlight the possibilities of
reporting companies on sustainability and assessing the ability of entities to continue with
time-limited operations
Keywords
Sustainability, reporting, EU directive, going concern
Hrčak ID:
336248
URI
Publication date:
24.3.2024.
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