РЕЛЕВАНТНОСТ РАЧУНОВОДСТВЕНИХ ИНФОРМАЦИЈА ЗА ПОТРЕБЕ МЕНАЏМЕНТА КАО КВАЛИТАТИВНА КАРАКТЕРИСТИКА ХИБРИДНОГ МОДЕЛА ФИНАНСИЈСКОГ ИЗВЈЕШТАВАЊА У РЕПУБЛИЦИ СРПСКОЈ
RELEVANCE OF ACCOUNTING INFORMATION FOR MANAGEMENT NEEDS AS A QUALITATIVE CHARACTERISTIC OF THE HYBRID MODEL OF FINANCIAL REPORTING IN THE REPUBLIC OF SRPSKA

Author(s): Aleksandra Babić, Miroslav Brkić
Subject(s): National Economy, Accounting - Business Administration, Socio-Economic Research
Published by: Savez računovođa i revizora Republike Srpske
Keywords: financial statements; hybrid financial reporting model; historical cost concept; fair value concept; fundamental qualitative characteristics relating to useful financial information; relevance;
Summary/Abstract: Contemporary financial reporting represents a hybrid model that combines two fundamental concepts: the historical cost accounting concept and the fair value accounting concept. In the Republic of Srpska, the regulatory framework mandates the full application of International Financial Reporting Standards (IFRS), which inherently incorporate elements of both concepts. For small and medium-sized entities, the application of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) is prescribed, wherein the fair value concept is present to a lesser extent. Both concepts ‒ historical cost and fair value ‒ when observed individually, generate financial information with varying degrees of usefulness for different categories of financial statement users. To ensure that such information is useful to users of financial statements, it is necessary for it to incorporate the fundamental qualitative characteristics ‒ relevance and faithful representation. Accordingly, the paper identifies and analyzes the structure of business entities in the Republic of Srpska according to their size, as well as their preferences in terms of the two aforementioned financial reporting concepts. Based on a selected sample, the paper also analyzes the fundamental characteristic of the relevance of financial information for the needs of company management. The analysis is conducted using data from the most recently available financial statements of business entities for the year 2024.

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