engleski

Harmonization of Accounting Legislation in Croatia with European Union Legislation

The need for financial reporting regulation, in the way and according to rules of market economies, has appeared after Croatia become independent. In that context, at the end of 1992 the Accounting Law has been adopted in Croatia, which applied from JAnuary 1st 1993. With this Law use of International Accounting Standards (IAS) was obligatory. The important characteristic of this Law was also its compatibility with 4th and 7th Directive of European Union. Problems arising from implementation of Law after 2000 together with a desire for full membership in EU have imposed a numerous steps to be undertaken, with a purpose to harmonize Croatian legislation with the legislation of EU.One of the most important steps is harmonization of accounting legislation. The most important EU documents on this field are 4th Directive - Annual accounts of certain types of companies, 7th Directive - Consolidated accounts and resolution on IAS use. As a result of undertaken steps a new Accounting Law was adopted by Croatian Parliament on 29 November 2005. This Law appliance began January 1st 2006. The goal of this paper is to critically present changes in Croatian accounting legislative which purpose is to harmonize with EU requests. Furthermore, the goal of this paper is also to present further steps that are necessary to be undertaken for complete harmonization of Croatian legislation with the EU legislation.

harmonization ; accounting legislation ; European Union

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