engleski

Review of the Factors Affecting Financial Reporting System Competitiveness

Accounting has a long and rich tradition of activities and existence but various environmental factors resulted in distortion of accounting system. That additionally caused inconsistent accounting practices. Apart from internal factors, external factors affect accounting system more intensively. External factors intensity is disproportional and is influenced by historical heritage, cultural factors and by interrelationship between tax and accounting authorities. Factors interaction and interdependence affect business entities as they are forced to prepare a dual set of financial statements. That causes reduced information quality. Parallel reporting system reduces business competitiveness and increases capital costs which ultimately increase information redundancy. This paper presents diversity of environmental factors and connection with competitiveness calculation methodology.

accounting system ; environmental factors ; internal and external factors ; competitiveness calculation methodology

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