Financial reporting policy as tool for creating value for stockholders

Authors

  • Бојан Савић University of Belgrade, Faculty of Agriculture

Keywords:

financial reporting policy, value for stockholders, information assymetry, agency relationship, capital market

Abstract

Financial reporting process has long outgrown the framework of accounting functions of the ?ompany. It is an important management tool that serves not only accountability, but also communicating with the investment community in order to create financial reputation of the company. Financial reporting contributes to the efciency of capital markets as a precondition for development of the entire economy. Hence, in the contemporary market economy financial reporting by management can not be seen solely as normative the imposed obligations. Financial reporting policy is a set of tools aimed at the target format of the financial statements. In other words, the content and form of financial statements, adjusted to the defined goals of a company. It is important however to note that the entire process is carried out in accordance with current legislation, generally accepted accounting principles and IFRS. Otherwise, you would not be able to talk about the legal action, but a counterfeit financial reporting. The aim of this paper is to highlight the achievements of the policy of financial reporting in the creation, management and maintenance of value for business owners. Specifcally, strategies, objectives and policies of the company verifying their right to have a market. Trough the activities of the commercial market enterprise creates value. However, testing is done on the value of the capital market. The importance of financial reporting is re?ected in both these markets.

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Published

2013-07-31

How to Cite

Савић, Б. (2013). Financial reporting policy as tool for creating value for stockholders. Acta Economica, 11(19), 201–220. Retrieved from http://ae.ef.unibl.org/index.php/AE/article/view/101

Issue

Section

Review article

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