engleski

THE IMPACT OF GLOBAL FINANCIAL MARKETS ON FINANCIAL STATEMENTS STANDARDIZATION PROCESS FOR LISTED COMPANIES WORLDWIDE

As participants in the process we use the word globalization daily in different situations. What is the relationship of accounting and globalization? The answer to this question lies in the standardization of financial statements which the company presents in the securities market. The fact is that there are many differences in financial reporting practices of companies in different countries. This causes great problems for those who prepare, consolidate, audit, and interpret the published financial statements, particularly regarding the definition of the categories within the financial statements, and use of different criteria for their recognition and measurement. This is precisely the reason for international standardization of financial reporting, which is being developed as standardization of both, financial statements measurement and content. Measurement standardization refers to the individual items compliance of methods and evaluations in financial statements. Content standardization means harmonization of disclosure requirements, or what kind of relevant information must be disclosed by a company in its financial statements. IASB is very active, and in an effort to further develop and strengthen the financial reporting standardization process the IFRS emerge. Key factors of competitiveness imposed by globalization become the quantity, quality and speed of information needed for good management and survival on the market. Sharp competition and survival in the market forces investors, creditors, companies, and other financial markets participants to take risks, and for efficient risk management information is of vital importance. The best providers of information needed in decision-making by financial markets participants are financial statements as the final product of accounting process in a company. They provide essential background information in any decision-making process. The authors of this article will present the requirements for disclosure by listed companies in most important capital markets worldwide, and thus also the financial reporting harmonization process, at least when it comes to listed companies. For this purpose, they will take into account the relative strength and size of the world's most important capital markets.

financial statements ; International Accounting Standards ; harmonization of financial statements ; globalization of financial markets ; financial market

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