EVOLUTION OF FINANCIAL REPORTING LEGAL REGULATIONS IN THE EUROPEAN UNION AND IMPLICATIONS FOR SERBIA

Zorana Tijanić; Aleksandra Zlatić Tešić; Snežana Krstić; Radovan Damnjanović

doi:10.59864/Oditor42601ZT

Authors

Zorana Tijanić Metropolitan University, Belgrade, Serbia Author https://orcid.org/0009-0005-4031-5837
Aleksandra Zlatić Tešić Faculty of Law for Commerce and Judiciary in Novi Sad, University Business Academy in Novi Sad Author
Snežana Krstić Military Academy, University of Defense in Belgrade, Serbia Author https://orcid.org/0000-0001-6666-6401
Radovan Damnjanović Military Academy, University of Defense in Belgrade, Serbia Author https://orcid.org/0000-0002-4574-5546

DOI:

https://doi.org/10.59864/Oditor42601ZT

Keywords:

financial reporting, legal regulations, harmonization, international financial reporting standards (IFRS)

Abstract

Financial reporting is a key mechanism for ensuring transparency, accountability, and trust in the capital market and the broader economic system. The development of the European Union’s legal framework reflects a long-term process of harmonisation aimed at improving the comparability and reliability of financial information among Member States. Foundational directives, later consolidated through Directive 2013/34/EU, established a modern framework for financial and non-financial reporting, further enhanced by Directive 2014/95/EU and the Corporate Sustainability Reporting Directive (CSRD). As an EU candidate country, the Republic of Serbia has made significant progress in aligning its legislation with European standards, particularly through the 2019 Law on Accounting. However, challenges remain in the full implementation of International Financial Reporting Standards (IFRS) and in strengthening institutional oversight and quality control. This paper analyzes the evolution of EU financial reporting regulations, evaluates the level of harmonisation in Serbia, and identifies key challenges and opportunities for further improvement.

Downloads

Download data is not yet available.

References

Agencija za privredne registre (APR). (2024). Baza finansijskih izveštaja. Retrieved from https://www.apr.gov.rs

Arafat, I., Dunne, T. & Ahmed, A. H. (2020). Splitting Accountability Hairs: Anomalies in the Adaptation of IFRS for SMEs in the UK and Ireland. Accounting in Europe, 17, 183–203. https://doi.org/10.1080/17449480.2020.1764601

Archel, P., Husillos, J. & Spence, C. (2011). The institutionalisation of unaccountability: loading the dice of Corporate Social Responsibility discourse. Accounting, Organizations and Society, 36 (6), 327-343.

Breuer, M., Hombach, K. & Müller, M. A. (2018). How Does Financial Reporting Regulation Affect Firms’ Banking? The Review of Financial Studies, 31, 1265–1297. https://doi.org/10.1093/rfs/hhx123

Bučalina Matić, A. (2023). Faktori odlučivanja i kreiranje lojalnosti potrošača - Tankosić Mirjana, Bulut-Bogdanović Ivana: Ponašanje potrošača u savremenom poslovnom okruženju. Fakultet društvenih nauka, Beograd, 2024. Društveni horizonti, 3(6), 103-106.

Caputo, F., Pizzi, S., Ligorio, L. & Leopizzi, R. (2021). Enhancing environmental information transparency through corporate social responsibility reporting regulation. Business Strategy and the Environment. https://doi.org/10.1002/bse.2814

Cho, C. H., Laine, M., Roberts, R. W. & Rodrigue, M. (2015). Organized hypocrisy, organizational façades, and sustainability reporting. Accounting, Organizations and Society, 40, 78–94. https://doi.org/10. 1016/j.aos.2014.12.003

Contrafatto, M., Costa, E. & Pesci, C. (2019). Examining the dynamics of SER evolution: an institutional understanding. Accounting, Auditing andamp; Accountability Journal, 32 (6), 1771-1800.

Dašić, B., Župljanić, M. & Pušonja, B. (2023). Uloga regulatornog okvira na prilive stranih direktnih investicija. Akcionarstvo, 29(1), 95-112.

De Simone, L. & Olbert, M. (2022). Real Effects of Private Country by Country Disclosure. The Accounting Review, 97, 201–232. https://doi.org/10.2308/TAR-2020-0714

de Sousa, A. T. L. M. (2024). Brazil i Kina - snažno partnerstvo. Društveni horizonti, 4 (8), 23-40. https://doi.org/10.5937/drushor2408023L

Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 as regards corporate sustainability reporting (CSRD). Official Journal of the European Union, L 322, 16.12.2022, 15–61.

Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC and repealing Council Directives 78/660/EEC and 83/349/EEC. Official Journal of the European Union, L 182, 29.6.2013, 19–76.

Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups. Official Journal of the European Union, L 330, 15.11.2014, 1–9.

Directive 78/660/EEC of the Council of 25 July 1978 based on Article 54(3)(g) of the Treaty on the annual accounts of certain types of companies (Fourth Council Directive). Official Journal of the European Communities, L 222, 14.8.1978, 11–31.

Directive 83/349/EEC of the Council of 13 June 1983 based on Article 54(3)(g) of the Treaty on consolidated accounts (Seventh Council Directive). Official Journal of the European Communities, L 193, 18.7.1983, 1–17.

Doni, F., Bianchi Martini, S., Corvino, A. & Mazzoni, M. (2019). Voluntary versus mandatory non- financial disclosure. Meditari Accountancy Research, 28(5), 781– 802. https://doi.org/10.1108/MEDAR-12-2018-0423

EFRAG. (2024). Sustainability Reporting Standards Portal. Retrieved from https://www.efrag.org

European Commission. (2024). Accounting and Financial Reporting in the EU. Retrieved from https://finance.ec.europa.eu

Fiechter, P., Hitz, J.M. & Lehmann, N. (2022). Real Effects of a Widespread CSR Reporting Mandate: Evidence from the European Union’s CSR Directive. Journal of Accounting Research, 60, 1499– 1549. https://doi.org/10.1111/1475-679X.12424

Gallego-Alvarez, I. & Pucheta-Martínez, M. C. (2020). Corporate social responsibility reporting and corporate governance mechanisms: An international outlook from emerging countries. Business Strategy and Development, 3(1), 77–97. https://doi.org/10.1002/bsd2.80

Gojkov, D. (2024). Karakteristike objekata prava i državine. Revija prava javnog sektora, 4(1), 23-34

Golubović, M. & Janković, G. (2023). Priliv stranih direktnih investicija u funkciji pobolјšanja konkurentnosti privrede Republike Srbije. Održivi razvoj, 16 (1), 19-31. https://doi.org/10.5937/OdrRaz2301019G

Guthrie, J. & La Torre, M. (2020). Integrated reporting adoption with no substantial change: a case study of a large chemical producer. in C. de Villiers, P.-c. K. Hsiao and W. Maroun (Eds), Routledge, 466-466.

Guthrie, J., Parker, L. D., Dumay, J. & Milne, M. J. (2019). What counts for quality in interdisciplinary accounting research in the next decade: A critical review and reflection. Accounting, Auditing and Accountability Journal, 32(1), 2– 25. https://doi.org/10.1108/AAAJ-01-2019-036

Khlif, H. (2016). Hofstede’s cultural dimensions in accounting research: A review. Meditari Accountancy Research, 24(4), 545– 573. https://doi.org/10.1108/MEDAR-02-2016-0041

Lanfermann, G., Schwedler, K. & Schmotz, T. (2021). Nachhaltigkeitsberichtsstandards im Fokus der EUGesetzgebung [Sustainability reporting standards in the focus of the EU Commission]. Die Wirtschaftsprüfung, 74 (12), 762–767.

Leuz, C. & Wysocki, P. D. (2016). The Economics of Disclosure and Financial Reporting Regulation: Evidence and Suggestions for Future Research. Journal of Accounting Research, 54, 525–622. https://doi.org/10.1111/1475-679X.12115

Lu, J. & Wang, J. (2021). Corporate governance, law, culture, environmental performance and CSR disclosure: A global perspective. Journal of International Financial Markets, Institutions and Money, 70, 101264. https://doi.org/10.1016/j.intfin.2020.101264

Macellari, M., Yuriev, A., Testa, F. & Boiral, O. (2021). Exploring bluewashing practices of alleged sustainability leaders through a counter-accounting analysis. Environmental Impact Assessment Review, 86(xxxx), 106489. https://doi.org/10.1016/j.eiar.2020.106489

Majstorović, A. & Obrić B. (2023). Principi za poboljšanje dosadašnjeg stanja interne budžetske revizije. Finansijski savetnik, 28(1), 51-68

Ministarstvo finansija Republike Srbije. (2024). Informacije o sprovođenju Zakona o računovodstvu. Retrieved from https://www.mfin.gov.rs

Milanović, A. & Gojkov, D. (2024). Država kao društveno-pravna tvorevina. Finansijski savetnik, 29(1), 39-52

Neševski, A. & Bojičić, R. (2024). Analiza uloge sopstvenih prihoda u finansiranju rashoda. Akcionarstvo, 30 (1), 95-112.

Nishitani, K., Haider, M. B. & Kokubu, K. (2020). Are third-party assurances preferable to third-party comments for promoting financial accountability in environmental reporting? Journal of Cleaner Production, 248, 119199. https://doi.org/10.1016/j.jclepro.2019.119199

Nobes, C. & Stadler, C. (2023). Deviations from the Mandatory Adoption of IFRS in Europe? Why NonAdoption Does Not Mean Non-Compliance. European Accounting Review, 0, 1–23. https://doi.org/10.1080/09638180.2023.2197248

Paspalj, M., Paspalj, D. & Milojević, I. (2024). Održivost savremenih ekonomskih sistema. Održivi razvoj, 6 (1), 33-45. https://doi.org/10.5937/OdrRaz2401033P

Pizzi, S., Baldo, M., Caputo, F. & Venturelli, A. (2021). Voluntary disclosure of sustainable development goals in mandatory non-financial reports: the moderating role of cultural dimension. Journal of International Financial Management and Accounting. https://doi.org/10.1111/jifm.12139

Pravilnik o sadržini i formi obrazaca finansijskih izveštaja i sadržini i formi obrasca statističkog izveštaja za privredna društva, zadruge i preduzetnike („Službeni glasnik RS“, br. 89/2020).

Program ekonomskih reformi Republike Srbije 2025–2027, Vlada Republike Srbije.

Quick, R. & Inwinkl, P. (2020). Assurance on CSR reports: Impact on the credibility perceptions of non-financial information by bank directors. Meditari Accountancy Research.

Radebaugh, L.H., Gray, S.J. & Black, E.L. (2006). International Accounting and Multinational Enterprises. 6th ed., Wiley, New York.

Radovanović, Ž., Mihailović, N. & Rajnović, Lj. (2024). Impact of the implementation of the fatf recommendations on the financial performance of the gambling sector. Akcionarstvo, 30 (1), 77-94.

Rankin, M., Windsor, C. & Wahyuni, D. (2011). An investigation of voluntary corporate greenhouse gas emissions reporting in a market governance system: Australian evidence. Accounting, Auditing and Accountability Journal, 24 (8), 1037–1070. https://doi.org/10.1108/09513571111184751

Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards. Official Journal of the European Communities, L 243, 11.9.2002, 1–4.

Regulation (EU) No 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities. Official Journal of the European Union, L 158, 27.5.2014, 77–112.

Rykaczewski, M., Thevenot, M. & Vulcheva. M. (2022). International Accounting and Auditing Standards Adoption in the Eastern European Countries of the European Union: Review of Regulations and Literature. Journal of International Accounting Research, 21, 151–177. https://doi.org/10.2308/JIAR-2022-011

Savić, A. & Bonić, Lj. (2022). Analysis of the impact of reporting on environmental performance idicator on the profitability of European companies, Facta Universitatis – Economics and Organization, 19 (3), 167-182. https://doi.org/10.22190/FUEO220529013S

Savić, A., Božić, N. & Tešić, R. (2025a). Uloga i značaj pokazatelja privrednog rasta. The role and importance of economic growth indicators. Časopis Ekonomist, 4 (1), 47-82. https://doi.ub.kg.ac.rs/doi/casopisi/10-46793-ekonomist4-1-2/

Savić, A., Kostić, R. & Ivanova, B. (2025b). Uloga finansijskog izveštavanja u poreskoj evaziji. Megatrend revija, 22(1), 75-100. https://doi.org/10.5937/MegRev2501075S

Škrbić, S., Malešić, S. & Gojkov, D. (2023). Proces budžetskog planiranja. Revija prava javnog sektora, 3(2),21-36

Strategija za razvoj tržišta kapitala Republike Srbije 2021–2026 („Službeni glasnik RS“, br. 102/2021).

Tarquinio, L. & Posadas, S. (2020). Exploring the term “non-financial information: an academics’ view. Meditari Accountancy Research.

Tost, M., Hitch, M., Chandurkar, V., Moser, P. & Feiel, S. (2018). The state of environmental sustainability considerations in mining. Journal of Cleaner Production, 182, 969–977. https://doi.org/10.1016/j.jclepro.2018.02.051

Tsalis, T.A., Malamateniou, K.E., Koulouriotis, D. & Nikolaou, I.E. (2020). New challenges for corporate sustainability reporting: United Nations’ 2030 Agenda for sustainable development and the Sustainable Development Goals. Corporate Social Responsibility and Environmental Management, 27 (4), 1617– 1629. https://doi.org/10.1002/csr.1910

Uyar, A., Pizzi, S., Caputo, F., Kuzey, C. & Karaman, A.S. (2021). Do shareholders reward or punish risky firms due to CSR reporting and assurance? Managerial and Decision Economics. https://doi.org/10.1002/mde.3476

Velte, P. (2021). Prüfung von Nachhaltigkeitsberichten nach dem Entwurf einer „CSR-Richtlinie 2.0“: Vergleichende Analyse der Reformmaßnahmen und kritische Würdigung [Audit of sustainability reports according to the draft of a "CSR Directive 2.0": Comparative analysis of the reform measures and critical appraisal]. Die Wirtschaftsprüfung, 74 (10), 613–620.

Venturelli, A., Caputo, F., Leopizzi, R. & Pizzi, S. (2019). The state of art of corporate social disclosure before the introduction of non-financial reporting directive: a cross country analysis. Social Responsibility Journal, 15 (4), 409-423.

Vitolla, F., Raimo, N., Rubino, M. & Garzoni, A. (2019). The impact of national culture on integrated reporting quality. A stakeholder theory approach. Business Strategy and the Environment, 28 (8), 1558– 1571.

Vukša, S. & Milojević, I. (2024). Održivost računovodstva kao informacionog sistema. Održivi razvoj, 6 (2), 23-33. https://doi.org/10.5937/OdrRaz2402023V

Waymire, G. B. (2009). Exchange Guidance is the Fundamental Demand for Accounting. The Accounting Review, 84 (1), 53- 62.

Zakon o računovodstvu („Službeni glasnik RS“, br. 73/2019 i 44/2021 – dr. zakon).

Zakon o reviziji („Službeni glasnik RS“, br. 73/2019 i 44/2021 – dr. zakon).

Žikić, S., Tankosić, M. & Galik, V. (2024). Upravljanje otpadom kao važan segment održivog razvoja. Društveni horizonti, 4(7), 91-106. https://doi.org/10.5937/drushor2407091Q