Uloga kvaliteta procesa finansijskog izveštavanja u održivosti poslovanja preduzeća
The role of the financial reporting process quality in the business’ operations sustainability

Summary/Abstract: The quality of financial reporting is one of the important instruments on which company management relies and trusts in order to ensure the growth and development of the company. As a prerequisite for sustainable business operations, the need for accurate and reliable information for business decision-making is highlighted, and accordingly, the issue of reporting quality captures the attention of a large number of interested parties. In the paper, first of all, from a theoretical point of view, the interdependence between the quality of financial reporting on the one hand and the business performance of the company on the other hand was pointed out as a measure of business success and sustainability. In the second part of the paper, an analysis of the quality of financial reporting of companies in the Republic of Srpska was conducted from the aspect of meeting the requirements of professional accounting regulations, namely IAS 16 and IAS 2, and an analysis of the relationship between the quality of reporting and profitability as a performance of the company’s business was conducted. The research results indicate that on average companies disclose 63% of the disclosure requirements according to IAS 2 and IAS 16 and that there are areas that need to be improved. Also, the results indicate that companies that have better reporting quality also achieve better business performance in terms of profitability.

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