The Importance of Implementing IFRS in the Reporting of Assets of Kosovo Businesses

Session

Management, Business and Economics

Description

According to the International Accounting Standards Board (IASB), the purpose and importance of financial reporting is to provide information about the financial position, performance and changes in the financial condition of an enterprise that is useful to a wide range of users in taking economic decisions.

Financial reporting is important because it helps to ensure that companies and organizations are acting in accordance with relevant laws and, show to investors the current financial condition of a company. Investors use this data to make investment decisions.

Financial reporting contains reliable and relevant information that is used by interested parties for different purposes.
Knowing that International Financial Reporting Standards are rules and guidelines that show how information is reported by a business entity, then in this paper the main goal is how important these standards are in reporting assets and whether they are applied to businesses in Kosovo.

In this paper, we also studied that the standards in the previous years were less implemented, but from year to year there was a significant increase in improvement. International Financial Reporting Standards in asset reporting have a very important role as they positively affect business transparency and increase the business credibility.

Likewise, the implementers of the International Financial Reporting Standards in the reporting of assets have also encountered challenges during the implementation process due to various negligences, but in recent years, a process of professionalism in Kosovar businesses can be clearly seen.

Keywords:

Financial reporting, Iternational financial reporting standards, Financial situation.

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-550-95-6

Location

UBT Lipjan, Kosovo

Start Date

28-10-2023 8:00 AM

End Date

29-10-2023 6:00 PM

DOI

10.33107/ubt-ic.2023.165

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Oct 28th, 8:00 AM Oct 29th, 6:00 PM

The Importance of Implementing IFRS in the Reporting of Assets of Kosovo Businesses

UBT Lipjan, Kosovo

According to the International Accounting Standards Board (IASB), the purpose and importance of financial reporting is to provide information about the financial position, performance and changes in the financial condition of an enterprise that is useful to a wide range of users in taking economic decisions.

Financial reporting is important because it helps to ensure that companies and organizations are acting in accordance with relevant laws and, show to investors the current financial condition of a company. Investors use this data to make investment decisions.

Financial reporting contains reliable and relevant information that is used by interested parties for different purposes.
Knowing that International Financial Reporting Standards are rules and guidelines that show how information is reported by a business entity, then in this paper the main goal is how important these standards are in reporting assets and whether they are applied to businesses in Kosovo.

In this paper, we also studied that the standards in the previous years were less implemented, but from year to year there was a significant increase in improvement. International Financial Reporting Standards in asset reporting have a very important role as they positively affect business transparency and increase the business credibility.

Likewise, the implementers of the International Financial Reporting Standards in the reporting of assets have also encountered challenges during the implementation process due to various negligences, but in recent years, a process of professionalism in Kosovar businesses can be clearly seen.