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Financial Reporting and Auditing Standards in Serbia and Montenegro Take Center Stage

In this article, we will delve into the financial reporting and auditing standards in Serbia and Montenegro. We will explore the regulatory bodies that govern accounting operations, the requirements for financial reports, and the role of professional associations in promoting standard practices.

Accounting Landscape in Serbia

Start of Financial Year

The financial year in Serbia commences on January 1st and concludes on December 31st of the same year. All enterprises, from listed companies to proprietorships, are required to comply with International Financial Reporting Standards (IFRS).

Recording Accounting Operations

The Serbian accounting landscape is governed by several regulatory bodies that ensure timely recording of accounting operations. This includes:

  • Journal (Dnevnik): transactions are documented chronologically or according to receipt of accounting documents
  • Ledger (Glavna knjiga): provides a comprehensive view of accounts changes concerning ownership, liabilities, capital, revenue, and expenditure

Financial Reports in Serbia

Components of Financial Reports

Companies are mandated to prepare financial reports for the current year, comprising:

  • Balance sheet reflecting their current financial standing
  • Statement of income
  • Report on liquid assets
  • Report on changes in capital
  • Explanatory notes
  • Annexes (Statisticki aneks)

These reports serve as a basis for creating financial statements.

Publication Requirements

Publication requirements vary depending on company size:

  • Small companies: submit financial reports to the National Bank of Serbia by February 28th
  • Medium-sized and large companies: have until April 30th
  • The bank reviews these reports and publishes the financial standing of the companies

Association of Accountants and Auditors of Serbia (UDAS)

The UDAS plays a crucial role in promoting professional standards in accounting and auditing. Certification is mandatory for:

  • Large and medium-sized companies: audits conducted according to international standards by members of the Chamber of Certified Auditors (Komora ovlascenih revizora)
  • Small companies may opt for optional audits by the fiscal administration

External Auditors

Businesses can also engage external auditors from reputable firms such as:

  • Deloitte
  • PricewaterhouseCoopers
  • Ernst & Young
  • KPMG

The use of international standards ensures that auditing is conducted with transparency and accountability in mind.

Stay Informed

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