engleski

Statement of Cash Flows: Financial Reporting Practice in Croatia

Since the introduction of SFAS 95 in 1988 and IAS 7 in 1994, statement of cash flows became a very important source of accounting information. The aim of this paper is to explore financial reporting practice and to review the disclosure requirements of cash flow statement in Croatia. Obtained results indicate that Croatian companies prefer indirect method in preparation of cash flow statement probably because of its simplicity and cheapness. Furthermore, it is proved that cash flow preparation method is not correlated with company's main activity, while there is statistically significant correlation between cash flow preparation method and size and ownership of the company. Finally, results of the research indicate that the preparation of cash flow statement and its disclosure are still primarily in function of formal and legal requirements satisfaction.

cash flow statement; financial reporting

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