Ivana Mamić Sačer

The influence of accounting regulation simplification on the financial reporting of micro entities – the case of Croatia

The specifics of the business of micro entities highlight, in particular, the complexity of the problem of accounting regulations for this segment of the economy. The paper starts from the basic research question of whether the simplification of accounting regulations is necessary or not, particularly for those micro entities where ownership and management functions are integrated into the same person. In order to achieve the research objectives, the effects of accounting regulations simplification on decision-making processes in micro entities were tested. Empirical research has confirmed that the simplification of accounting regulation is justified, because it would have effects on the cost reduction, while the information quality base will not be diminished.

The Impact of Accounting Estimates on Financial Position and Business Performance – Case of Non-Current Intangible and Tangible Assets☆

Abstract Financial statements represent a great source of information for companys financial position and business performance evaluation. Management judgment depends on the information base which is given at the time of judgement. Each judgement is by its nature subjective, so the results of the estimation can differ. Non-current tangible and intangible assets represent a significant proportion of assets of many companies. There is a plenty of space for applying accounting estimates in order to recognise and measure such assets. The research model confirmed the volatility of financial condition and performance of a company as a result of different accounting estimates.

Do Croatian Quoted Companies Satisfy IFRS Disclosure Requirements of Accounting Estimates for Investment Property

Abstract Accounting estimates occur because a large number of items in financial statements cannot be measured precisely but can only be estimated. Significant accounting estimates are disclosed in the notes to the financial statements. The aim of the paper was to identify whether Croatian quoted companies disclose all information about accounting estimates related to the Investment property, as required by IAS 40. The research included 132 quoted companies in Croatia that apply IFRSs. The research results showed that investment property has a relatively small share in the structure of total assets of quoted companies in Croatia, which is probably one of the reasons why related accounting estimates published in the notes are brief and incomplete. The general conclusion is that the notes regarding accounting estimates on investment property are composed of definitions set in the standard, instead of providing more transparent information for investors and other interested users of financial statements. As expected, the companies with the higher share of investment property have shown greater level of transparency, providing additional information which is not required by the standards.