Annual Business Report as a Source of Information to Users of Financial Statements

Abstract

The Annual Business Report is an obligatory component in the external reporting process played by business entities, usually those who are considered to have public accountability (quoting companies, public companies, banks, insurance companies, investment funds, etc.). Although in accordance with the relevant international accounting regulations they do not form an integral part of the Annual Financial Report (general purpose), bonds of its preparation are mainly presented exactly by information that, by their very nature, belongs to the financial statement, including notes ti financial statements. This paper is devoted to the analysis of the usual reporting practice through the Annual Business Report in the area of the former Yugoslavia. The aim is to point out possible improvements to the existing legal and reporting practices so that, especially external users of information on the operations of publicly-accountable reporting entities, get the highest quality information they need to make various business decisions.