بهبود موسسات کوچک گزارشگری مالی
Abstract
1-Introduction
2-Characteristics of micro entities and their regulatory framework
3-Impact of a new accounting directive on micro entities financial reporting
4-Proposals for improving the financial reporting model of micro entities in Croatia
5-Conclusion
Acknowledgements
References
Abstract
In most countries, micro entities have a predominant share in the total number of registered entities. Administrative relief for micro entities is lately one of the most common requirements regarding their financial reporting practices. This subject is particularly actualized with recent amendments to new accounting directive (2013/34/EU). In this context, the creation of a more appropriate financial reporting model, customized for micro entities, represents a current scientific and professional challenge. Comparing the existing financial reporting solutions in the EU and Croatia it has been noticed that for now in Croatia there is no space for simplifying regulations even though the results of empirical research confirm the need for simplification of financial reporting model for micro entities.
Introduction
Business of micro enterprises is specific for many reasons. On the one hand, business is simpler, there is much lower volume of transactions present, owners generally completely independently manage the company, etc. Very often they have difficulties with accessing bank credit and almost no chance of financing through the capital market. In most countries, micro entities have a predominant share in the total number of registered entities. Although their business is much simpler, micro entities generally have to apply the same accounting rules as for example mediumsized entities i.e. entities with a much larger number of employees and much more complex business transactions. This situation causes problems in business practice, especially in the area of financial reporting. Administrative relief for micro entities is lately one of the most common requirements regarding their financial reporting practices due to fact that costs of financial reporting exceed their expected benefits. This subject is particularly actualized with recent amendments to EU accounting directive e.g. with the introduction of the category of micro entities in the content of this most important European regulation. Each EU Member State has the task to concretize the implementation of the main provisions of the new 2013/34/EU Directive. The Directive offers Member States the possibility of self-regulation in the area of financial reporting undertakings, but in a way that provisions of national legislation are not inconsistent with the Directive.