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External Segment Reporting in the Republic of Serbia

Author

Listed:
  • Obradović Vladimir

    (University of Kragujevac, Faculty of Economics, Serbia)

  • Karapavlović Nemanja

    (University of Kragujevac, Faculty of Economics, Serbia)

Abstract

The purpose of the research in this paper is to examine the regulation and practices of external segment reporting in the Republic of Serbia. The importance of research stems from a great potential usefulness of segment information for investors and creditors. The analysis of regulation suggests that the Republic of Serbia has high-quality and internationally recognized basis of external segment reporting – IFRS 8. However, there is a room for improvement of IFRS 8. The analysis of practices, conducted on a sample of 500 companies, shows that companies in the Republic of Serbia, in general, do not attach great importance to the disclosure of segment information in financial statements. The practices are quite miscellaneous, which is a consequence of the flexibility of IFRS 8, but also an incomplete compliance with IFRS 8. By applying statistical techniques we have examined whether the practices of external segment reporting are related to characteristics of companies, which makes the originality of the paper. We have found that financial institutions disclose more extensive quantitative segment information in relation to other companies in the Republic of Serbia, and that companies with higher assets disclose more extensive segment information. The research indicates that there is a significant room for improving the practices of external segment reporting in the Republic of Serbia. The research results may be useful for regulators of financial reporting and preparers and auditors of financial statements.

Suggested Citation

  • Obradović Vladimir & Karapavlović Nemanja, 2016. "External Segment Reporting in the Republic of Serbia," Economic Themes, Sciendo, vol. 54(1), pages 155-176, March.
    • Handle: RePEc:vrs:ecothe:v:54:y:2016:i:1:p:155-176:n:8
    DOI: 10.1515/ethemes-2016-0008
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    References listed on IDEAS

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    3. Nina Franzen & Barbara E. Weißenberger, 2015. "The adoption of IFRS 8 – no headway made? Evidence from segment reporting practices in Germany," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 16(1), pages 88-113, May.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial reporting; segment reporting; disclosure; IFRS 8; operating segment;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other
    • F30 - International Economics - - International Finance - - - General

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