ULOGA I ZNAČAJ FINANSIJSKOG IZVEŠTAVANJA SA ASPEKTA PRIVREDNOG SUBJEKTA / THE ROLE AND SIGNIFICANCE OF FINANCIAL REPORTING FROM THE ASPECT OF THE BUSINESS SUBJECT

Abstract

Financial reporting represents an extremely important segment of the company's business, whose role is reflected in the realization of a stable and reliable infrastructure in the company's communication with the environment. Financial statements are an important source of information about the transactions that the company has with the environment, and which it does without it is impossible to adequately organize the business of the company itself and make the right decisions. In order for financial reports to serve the stated purpose, it is necessary that the information they contain be relevant and credible, comparable, verifiable, timely and understandable. This means that financial reports should be presented honestly, objectively and truthfully, to present the property, financial and profitability position of the company. Only such reports can establish a key connection, in the capital market, between those who own capital and business entities that need capital. Financial reports are prepared according to international standards, that is, according to international professional regulations and have the character of quality financial reports. Their main goal is to create information that is useful for making decisions of a financial nature.