engleski

„Administrative convergence and development of civil society in Croatia“

The success of nonprofit organizations - a component of civil society in carrying out the objectives and tasks, is directly linked to good governance. To secure the information base necessary to support the management, it is necessary to establish the appropriate accounting and information system and management control. The reform of accounting and reporting systems is directed towards leaving fund accounting and towards the change in the accounting basis choice. This has resulted in the change in form and content of financial statements and the application of systematic classification that requires changes within the contents of the chart of accounts and records of compliance with primary and subsidiary ledgers. The reform direction that has been selected in terms of applying accrual accounting has enabled the establishment of consistent and modern accounting systems in the nonprofit sector. Moreover, this is further regulated by the requirements demanding for the application of relevant classification systems of international financial and statistical reporting. At the same time, the optimal degree of harmonization of reporting systems of "private" and "state" nonprofit organizations has been achieved. This suggests that it is justified and reasonable, for all nonprofit organization groups, to apply the same rules of measurement and evaluation, recognition of revenues and expenses and the internationally comparable and acceptable economic classification of revenues and expenses. The nature of activities and different sources of financing generally require that nonprofit organizations accurately account for not only the overall financial performance but also its business segments that are financed from various, often severely restricted resources. Therefore, accounting for nonprofit organizations is facing a growing demand for the development of internal accounting and monitoring of operations by segments and sources of financing. In the management processes supported by the accounting information, the importance of developing and functioning of the internal financial monitoring and control is increasingly emphasized. In the nonprofit sector in transition countries, the situation in this regard is still unsatisfactory. The development of internal control in nonprofit organizations largely depends on its size, complexity of the organizational chart and business activities. By following the international trend of affirmation and implementation of the accrual accounting concept, the reform direction of change of external financial reporting of nonprofit organizations in the observed transition was determined to a complete or slightly adapted accrual accounting concept, i.e. direct or indirect application of IAS. In close connection to this, there is the necessity of implementing relevant and internationally comparable classification for the presentation of the elements of financial statements of nonprofit organizations.

Administrative convergence; Civil Society ;

Rad predstavlja znanstveno izvješće u izvršenju III.faze Jean Monnet projekta:JM PROJECT - South-Eastern European developments on the administrative convergence and enlargement of the European Administrative Space in Balkan States based on Decision no. 2009 -2946 / 001 001 of the Education, Audiovisual and Culture Executive Agency on the award of a grant to support the Jean Monnet Programme – Key Activity 1 within the Lifelong Learning Programme III. stage “European administrative space (EAS) - non-formalised acquis concerning the developments of national public administrations“