Подобрување на деловното одлучување преку ефикасно финансиско известување

Fotov, Risto and Gorgieva-Trajkovska, Olivera and Georgieva Svrtinov, Vesna (2013) Подобрување на деловното одлучување преку ефикасно финансиско известување. Зборник на трудови - Економско-финансиската криза и сметководственото окружување-предизвици за сметководството, ревизијата и финансиите и позиционирањето на сметководствената професија. pp. 53-71. ISSN 978-9989-747-32-8

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“A sound financial reporting system, supported by high quality accounting standards and backed by a solid regulatory, governance and ethical framework, is a pre-requisite for economic development”. Accounting has been around since the beginning of civilization and played an important role in the development of cities, trade and the concepts of wealth. Nowadays, business is very complex and therefore there is an increased need for providing accurate and reliable financial information. Moreover, according to ACCA’s beliefs, the importance of financial reporting and accounting standards is significant not only for the accountancy profession, but also for the world economy. Dr. Joe Sumners, Auburn University, defines economic development as “the process by which a community creates, retains, and reinvests wealth and improves the quality of life”. Economic development encompasses diverse disciplines, including economics, business, political science, public administration, marketing and communications, sociology, community planning, education. In that case, it can be questioned whether good financial reporting system, supported by accounting standards, regulatory framework, good corporate governance and ethical standards, plays also an important role for further economic development. During the past few years, successful businesses have become more customer and service oriented rather than product oriented. Entities are concentrating on human resources, information and data, and research and development as they adapt to rapid changes in technology and increased competition. The new focus replaces the traditional objective of managing and controlling raw materials, direct labor, and overhead. Financial reporting, however, has not kept up with these advances. The traditional financial reporting model is grounded in historical costs and the reporting of economic events, so it needs to be broadened to make it more informative and useful to investors, creditors and their advisors. For users of business information and for financial markets, the stakes in an informative model of reporting are high. Capital allocation decisions are made based on information received from management, and accurate, timely information facilitates the flow of capital to the most appropriate business opportunities. In turn, capital allocation decisions and the liquidity of capital markets affect the competitiveness of the nation as a whole. Thus, it is critical for a business reporting model to encompass information needed by users. The current model of financial reporting requires fairly consistent accounting principles and disclosures-with some limited range of choices-regardless of the company's industry or the particulars of the business. A more flexible model that emphasizes the usefulness of company-specific information is more appropriate in addressing the needs of users of business information. The present financial reporting model has not been altered significantly for decades. Concerns about the deteriorating relevance of financial reporting have been expressed for some time. Recommendations offered by the Special Committee on Financial Reporting differ from current financial reporting in three ways. First, high-level operating data and performance measures would become an integral component of the reporting process. The inclusion of operating data and other performance measures would allow users to understand management's perspective and the connection among ongoing events, the financial statements, and factors that create long-term value and wealth for the company. Second, forward-looking information would be included in the reporting process because it would give users insight into management's vision and the opportunities and risks associated with an investment. Third, segment reporting would be expanded and improved.

Item Type: Article
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Economics
Depositing User: Olivera Trajkovska
Date Deposited: 21 Nov 2013 08:32
Last Modified: 27 Oct 2014 12:02
URI: http://eprints.ugd.edu.mk/id/eprint/8155

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