Mira Dimitrić

Accounting Reform in Croatia

This chapter deals with the most important factors and difficulties that influence the accounting reform and harmonization process in Croatia. It analyses the implementation of IFRS and IAS in Croatian accounting practice and judges the degree of accounting development in financial institutions. It provides a global framework for the Croatian corporate income tax system from the point of view of its accounting application and judges the usefulness of traditional and modern costing systems in enterprises in transition and Croatian enterprises as well.

Public Cost and Management Accounting System Implementation and Performance: an Integrative Approach

The impact of the cost and management accounting system (CMAS) implementation process in the public sector on its performance has predominantly been researched within the theoretical framework of contingency and/or institutional theory. The research presented in this paper tests the hypothesis that the inclusion of strategic choices (Child, 1972, 1997) made by public accounting actors contributes to the explanatory power of the theoretical framework applied so far. The goal of this paper is to determine the underlying factors in explaining the sources of performance excellence in public CMAS. The proposed multiple regression model combines three separate variables of public CMAS implementation explaining its performance. These are: strategic choice, performance measurement and cost control. Additionally, the importance of institutional pressures (mimetic and coercive) and competences of internal actors within this model are researched. The results are based on survey data gathered from 182 public sector organisations from Croatia and Slovenia.

Internal Models for Risk Management in Banks – Implementation Possibilities in Croatia

The research aims of this paper are: to give the global framework of internal models for risk management in banks according to Basel II , to research the compatibility of Croatian banking regulation and practice with the Basel Accord, and specify future development expectations. The achieved level of risk management in Croatia is evaluated through the analysis of the International Monetary Fund and the World Bank, presented in their country report. We also use a survey of the Croatian National Bank presenting questionnaire results concerning the attitudes of Croatian banks according to Basel II. Future expectations of internal models implementation are based on achieved prerequisites and charted development directions. Internal models implementation will be based on a contemporary risk organizational model that will include features and elements presented and described in the paper. New policies and processes of risk management contribute to the business decision process and a broader system of banking business governance and supervision. Their role is to strengthen the soundness and stability of banking system and to diminish competitive inequality among banks.