engleski

Appliance of Accounting Policies in SMEs – Croatian Case

The main goal of this paper was to explore which instruments small and medium-sized entities use for achieving business policy. Conducted empirical research, between else, explores about accounting policies in different fields. Under consideration were primarily long term asset, methods for measuring inventories cost, deduction of receivables, etc. According to results SMEs mostly use historical method for evaluating asset and liabilities. This is not surprising due to the existence of difficulties in defining and determining fair value which is often more favourable. Problem of choosing which depreciation method use for evaluating long-term asset for analysed SMEs was simple. Reason for that was the fact that they harmonized accounting standard provisions with tax legislation so almost all Croatian SMEs use straight-line method. Due to the inventorie cost method approximately half of analysed SMEs use FIFO method and others use weighed average cost. About 73% of Croatian SMEs deducts receivables in period shorter than 120 days which is a relatively good sign on track of quality financial reporting.

accounting policies; SMEs; CFRS

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