World Bank2012-06-112012-06-112007-10-01https://hdl.handle.net/10986/7688This report provides an updated assessment of accounting, financial reporting, and auditing requirements and practices within the enterprise and financial sectors in Croatia. It uses International Financial Reporting Standards (IFRS), International Standards on Auditing (ISA), and the relevant portions of European Union (EU) law (also known as the acquis communautaire). Croatia has made considerable progress in developing its regulatory framework for corporate sector financial reporting and auditing since the publication of the first Accounting and Auditing (A&A) report on the observance of standards and codes (ROSC) in 2002. The alignment of the revised regulatory framework with the acquis communautaire has been significantly improved and lays the basis for reinforcing the institutional capacity for financial reporting and auditing. However, not all requirements of the relevant acquis have been introduced and further work is needed to achieve full compliance. The Croatian institutional framework has undergone several important changes. However, further capacity building relating to monitoring, enforcing, and strengthening supervision (except for banks) is needed to ensure proper application of IFRS and national accounting standards. This report concludes that Croatia should take further steps in order to achieve its goal of developing a robust financial reporting framework tailored to the needs of the Croatian market economy, and aligned with the acquis communautaire, international standards and best practices.CC BY 3.0 IGOACCOUNTACCOUNTANCYACCOUNTANTSACCOUNTINGACCOUNTING POLICIESACCOUNTING PRINCIPLESACCOUNTING STANDARDACCOUNTING STANDARDSACCOUNTING TREATMENTACCOUNTSACQUISITIONANNUAL RETURNSAUDIT COMMITTEEAUDIT COMMITTEESAUDIT REPORTSAUDITED FINANCIAL STATEMENTSAUDITINGAUDITING PROFESSIONAUDITING STANDARDSAUDITORSAUDITSAVERAGE GROWTHBALANCE SHEETBANK ACCOUNTSBANK BRANCHESBANK LOANSBANK SUPERVISIONBANKING ASSETSBANKING CRISISBANKING LAWBANKING SECTORBEST PRACTICEBEST PRACTICESBONDSBOOKKEEPINGBORROWINGBROKERAGEBUSINESS ASSOCIATIONSBUSINESS COMBINATIONSBUSINESS OPERATIONSBUSINESS PLANBUSINESS SCHOOLSCAPACITY BUILDINGCAPITAL MARKETCAPITAL MARKETSCASH FLOWCENTRAL DEPOSITORYCOMPANY LAWCOMPLIANCE GAPCORPORATE GOVERNANCECREDIBILITYCREDIT LOSSESCREDITORCREDITOR RIGHTSCREDITORSCURRICULACURRICULUMDEPOSITDEPOSIT HOLDERSDEPOSIT INSURANCEDEPOSITSDISCLOSURE REQUIREMENTSEARNINGSEAST EUROPEEDUCATION STANDARDSENFORCEMENT MECHANISMENFORCEMENT MECHANISMSEQUIPMENTEXCHANGE RATESEXTERNAL DEBTFAIR VALUEFINANCIAL ASSETFINANCIAL ASSETSFINANCIAL INFORMATIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL INTERMEDIARIESFINANCIAL MANAGEMENTFINANCIAL MARKETSFINANCIAL POSITIONFINANCIAL REPORTINGFINANCIAL REPORTING STANDARDSFINANCIAL REPORTSFINANCIAL SECTORFINANCIAL SECTORSFINANCIAL SERVICESFINANCIAL STATEMENTFINANCIAL STATEMENTSFINANCIAL SYSTEMFINANCIAL SYSTEMSFOREIGN BANKSFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN INDEBTEDNESSFOREIGN INVESTORSFUND MANAGEMENTFUTURE CASH FLOWSFUTURE CREDITGOODWILLGROSS DOMESTIC PRODUCTINCOMEINFORMED DECISIONINSTITUTIONAL CAPACITYINSTITUTIONAL DEVELOPMENTINSTITUTIONAL INVESTORSINSTRUMENTINSURANCEINSURANCE COMPANIESINSURANCE MARKETINTEREST RATEINTEREST RATE SPREADINTERNAL AUDITINTERNATIONAL ACCOUNTING STANDARDSINTERNATIONAL ACCOUNTING STANDARDS COMMITTEEINTERNATIONAL BANKSINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL STANDARDSINVESTMENT FUNDINVESTMENT FUNDSISSUANCEJOINT STOCK COMPANIESJOINT STOCK COMPANYLACK OF TRANSPARENCYLARGE COMPANIESLEGAL ADVICELEGAL FRAMEWORKLEVEL OF KNOWLEDGELIFE INSURANCELIMITED LIABILITYLIMITED PARTNERSHIPSLIVING STANDARDSLOANMARKET CAPITALIZATIONMARKET DISCIPLINEMARKET ECONOMYMARKET SHAREMATURITYMONETARY FUNDMONEY MARKETNATIONAL BANKNON-PERFORMING LOANPENSIONPENSION BENEFITSPENSION FUNDPENSION FUNDSPENSION SYSTEMPOTENTIAL INVESTORSPRESENT VALUEPRIVATE BANKSPRIVATIZATION INVESTMENTPROVISION OF INFORMATIONPRUDENTIAL REGULATIONPUBLIC CONFIDENCEPUBLIC INVESTMENTSPURCHASINGPURCHASING POWERQUALITY ASSURANCEQUALITY CONTROLQUALITY STANDARDSREGULATORY FRAMEWORKRESERVERESPONSIBILITIESRETIREMENTRETURNSSALESAVINGSSAVINGS BANKSSECURITIESSENIORSHARE CAPITALSHAREHOLDERSHAREHOLDERSSMALLER FIRMSMALLER FIRMSSTAKEHOLDERSSTATUTORY AUDITORSSTATUTORY REQUIREMENTSSTOCK EXCHANGESTOCK MARKETSSUPERVISION OF PENSION FUNDSSUPERVISORY AGENCYSUPERVISORY AUTHORITYSUPERVISORY BOARDSUPERVISORY BOARDSTAXTRADE LIBERALIZATIONTRADINGTRAINING COURSESTRAINING MATERIALSTRAINING PROGRAMTRANSPARENCYTURNOVERUNDERWRITERSVOUCHER PRIVATIZATIONWITHDRAWALWORLD TRADEWorld Bank10.1596/7688