Comparative analysis of legal framework for interim financial reporting in Southeast Europe

Abstract

Interim financial reporting is the process of preparation, compilation and disclosure of financial statements for periods shorter than one year. The most commonly discussed are semi-annual and quarterly reporting. In many countries, interim financial reporting is compulsory for companies whose securities are traded on a regulated market and is regulated by both national capital market legislation and international regulations - this refers primarily to IAS 34 and the EU Transparency Directive. This paper analyzes the legal framework for interim financial reporting in ten Southeast European countries. Despite the ongoing process of harmonizing accounting regulations and the fact that all observed countries have adopted IAS/IFRS, the analysis has shown that differences in interim reporting persist and are significant. They are particularly prominent in non-EU countries and in segments where international regulation has left flexibility to national regulations. The results of this research may be of value to investors, regulators and future researchers looking at the quality of interim financial reporting.