SAVREMENI TRENDOVI EKSTERNOG I INTERNOG SEGMENTNOG FINANSIJSKOG IZVJEŠTAVANJA / CONTEMPORARY TRENDS OF EXTERNAL AND INTERNAL SEGMENT FINANCIAL REPORTING

Abstract

Segmented financial reporting is crucial to economic entities for achieving lasting competitive advantages. Modern business conditions require business entities to adapt and improve business performance and organization's specificities to survive on the market. In order to increase the efficiency of management and decision-making in large business entities, divisionalization or decentralization of a business entity is needed. These segments achieve results and participate significantly in the overall business of the subject so the separate informations are required for each segment separately. Research on the segment reporting is topical in modern business conditions, for internal and external users of financial statements. This labor will identify the concept of the segment and the informations that are demanded to be published by business segments, harmonized with the International Financial Reporting Standard 8 - Business Segments, which has replaced the International Accounting Standard 14 - Segment Reporting. IFRS 8, in regard to IAS 14, has introduced compatibility between the segments that are reported internally and the segments that are reported externally, because it is considered that everything that is relevant for internal users of informations is also relevant for external users. This contributes to a different approach in defining organizational units - segments of business and harmonization of external and internal financial reporting.