The modern approach to business reporting in the function of satisfying the information needs of stakeholders-review of Montenegro
Journal Title: Acta Economica - Year 2013, Vol 13, Issue 22
Abstract
The business environment in which the reporting entity performs its activity has undergone, and is still going through, signifcant changes created due to the influence of a large number of factors. In such, changed circumstances of doing business, the traditional approach to fnancial reporting has no strength to respond to a satisfactory degree to the increasing demands of the balance sheet addressees. In fact, the users of the reports demand more complete information, reinforced by non-fnancial content, that have a strategic dimension and are in addition future oriented. It is clear that the existing information offer cannot satisfy the needs of interested groups – stakeholders; therefore, many companies had engaged in a transformation of the classic model of fnancial reporting and created a new, integrated approach to fnancial reporting. In the context of the aforementioned, the goal of this paper is to point to the: a) informational powerlessness of the traditional system of fnancial reporting in the function of creation and maintenance of values for the stakeholders; b) the need to create a more comprehensive approach that integrates the fnancial aspect of the business with all the relevant information, strategies, risks and the ecological, social and economic dimension of the business; c) the reached level of fnancial reporting in Montenegro as well as to provide a review of the (in)achievements with regards to the latest evolutionary stage in the corporate reporting of the companies in Montenegro.
Authors and Affiliations
Ана М. Лалевић Филиповић
Keywords
Related Articles
- EP ID EP43811
- DOI https://doi.org/10.7251/ACE1522229L
- Views 242
- Downloads 0
SETTLING OF TRADE DISPUTES WITH ELEMENT OF FOREIGN ITERFERENCE
Arbitration settling of disputes among economic subjects as a result of business transactions with element of foreign interference is more and more important for of judging. Even though, gradually it has more important r...
ASSESSMENT OF THE CREDITWORTHINESS (CREDIT RATING) AND CREDIT RISK OF THE POTENTIAL LOAN APPLICANTS – COMPANIES IN THE REPUBLIC OF SRPSKA, USING LINEAR DISCRIMINATORY FUNCTIONS
One of the scientifically proven and effective methods for managing credit risk is a credit rating system based on clientʹs solvency. The model for the credit rating of bank customers presented in this paper is based on...
NON - GONVERNMENTAL SECTOR - ITS ROLE IN ACHIEVING THE ENTIRE DEVELOPMENT OF THE SOCIETY AND OVERCOMING OF THE CURRENT FINANCIAL AND ECONOMICAL DEPRESSION
Although some voluntary organizations and associations of citizens emerged during the whole historical development of human society, the notion non-governmental organization (NGO) started to be used and to play an import...
The Effects of the European Union Enlargement on Foreign Trade of Bosnia and Herzegovina
In times of globalization, there is a worldwide trend of creating various regional economic integrations which aim to benefit for their members. Almost all of the countries belong to or aspire to belong to a group. One o...
PROFITABILITY ASSESSMENT OF INVESTMENT PROJECTS OF DIFFERENT ECONOMIC DURATION
When any project economical effectiveness is estimated by net present value, each project having either positive or zero net present value can be accepted provided that such project does not depend on other projects. In...