THE ROLE AND IMPORTANCE OF QUALITY FINANCIAL REPORTING

Summary: The primary task of financial reporting is the creation of a high quality financial reports that are enhancing investor confidence, that of the creditors and other stakeholders, thus creating a favourable climate for investment activities and economic activities in general. Providing high quality financial statements in addition to respecting the professional and legal frameworks, involves the observance of ethical norms, i.e. an ethical conduct by those composing financial reports. Especially important is also harmonisation of the accounting and auditing practices which facilitates accounting -financial communication between economic stakeholders throughout the world, bridging in this manner accounting obstacles on the road to reaching a higher degree of freedom in the circulation of goods, services and capital.