Accounting policies in corporate governance practice and their impact on the financial position and business performance of company

Authors

  • Jelena Raičević Academy of Professional Studies South Serbia, Business School Blace, Serbia
  • Jelena Filipov University of Priština in Kosovska Mitrovica, Faculty of Economy Priština in Kosovska Mitrovica, Serbia

DOI:

https://doi.org/10.5937/bizinfo2102067R

Keywords:

financial statements, accounting policies, financial result

Abstract

The primary role of financial statements is to provide information to users, both internal and external, to make business decisions. The preparation of financial statements includes a number of methods and procedures that have different effects on the values ​​reported in the financial statements. The domain of accounting policies is precisely those methods and procedures, in fact rules related to the recognition and valuation of balance sheet items, as well as the preparation of financial statements. The choice of accounting policies achieves objectives that are mainly oriented towards the financial result and financial position of the reporting entity. The responsibility for the choice of accounting policies belongs to the management of the company. Their adequate choice by the management leads to a realistic view of the financial and profitable position of the company, as well as business success. The impact of applied accounting policies on the performance of companies is shown in a study conducted in companies in the Republic of Serbia, which showed differences in individual balance sheet items in groups of companies depending on the applied accounting policy.

Downloads

Download data is not yet available.

References

Britton, A., & Waterston, C. (2006). Financial accounting. Pearson Education.

Brkanić, V. (2002). Optimizacija bilansne strukture. RRRF Plus.

International Financial Reporting Standards Foundation. (2017). IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. https://www.iasplus.com/en/standards/ias/ias8

Medojević, M. (2005). Finansijsko računovodstvo. Beogradska poslovna škola.

Međunarodni standardi finansijskog izveštavanja (IFRS). (2009). IAS 1 – Prezentacija finansijskih izveštaja. Savez računovođa i revizora Srbije.

Međunarodni računovodstveni standard – MRS 8 Računovodstvene politike, promene računovodstvenih procena i greške. (2010). Službeni glasnik RS, br. 77/2010.

Mitrović, S. (2013). Institucionalni regulatorni okvir kao uslov kvaliteta finansijskog izveštavanja u Srbiji. U: Škobić, P. (Ured.). Zbornik radova 44. Simpozijuma Računovodstveno regulatorno okruženje: podsticaj ili ograničenje privrednog rasta (str. 60-84). Beograd: Savez računovođa i revizora Srbije.

Pallant, J. (2011). SPSS Survival manual. 4rd edition. Allen & Unwin.

Petrović, Z. (2011). Finansijsko izveštavanje. Univerzitet Sigidunum.

Sheskin, D. (2004). Handbook of Parametric and Nonparametric Statistical Procedures. 3rd edition. Library of Congres

Tenjević, L. (2002). Statistika u psihologiji - priručnik. Centar za primenjenu psihologiju.

Todorović, Z. (2012). Uticaj računovodstvene regulative na spoznaju ekonomsko-finansijske krize. U: Škobić, P. (Ured.). Zbornik radova 43. Simpozijuma Ekonomsko-finansijska kriza i računovodstveni sistem (str. 94-120). Beograd: Savez računovođa i revizora Srbije.

Žager, K. & Žager, L. (1999). Analiza financijskih izvještaja. Masmedia.

Downloads

Published

2021-12-31

How to Cite

Raičević, J. ., & Filipov, J. (2021). Accounting policies in corporate governance practice and their impact on the financial position and business performance of company. BizInfo (Blace) Journal of Economics, Management and Informatics, 12(2), 67–74. https://doi.org/10.5937/bizinfo2102067R