REGULATION AND PRACTICE OF THE FINANCIAL REPORTING OF BIOLOGICAL ASSETS IN REPUBLIC OF SERBIA

Abstract

Financial statements of agricultural enterprises are an important source of information for assessing the effects of using resources and consideration of the effects of the company. Based on the financial statements of agricultural enterprises, users make important decisions to agriculture, and thus overall economic activity. In order to make reliable and appropriate decisions it is necessary to provide quality financial statements that contain complete and accurate information about position and results of agricultural enterprises. This will provide information for efficient evaluation of business performance of agricultural enterprises. Accordingly, this paper provide the results of research the quality of financial reporting of biological assets in the Republic of Serbia in the period 2008- 2010. In this period there is a growing number of companies that adopted the requirements of standard, but the quality of financial reporting of biological assets is not satisfactory. Full disclosure of information according to standard first appears in 2010. year in only 6.67% of all investigated financial statements.