TY - JOUR AU - Kastrati, Agim PY - 2020/01/20 Y2 - 2024/03/29 TI - FINANCIAL REPORTING IN FUNCTION OF ECONOMIC DEVELOPMENT JF - KNOWLEDGE - International Journal JA - kij VL - 36 IS - 1 SE - Articles DO - UR - https://ikm.mk/ojs/index.php/kij/article/view/1480 SP - 31 - 35 AB - <p>Financial reporting based on International Financial Reporting Standards (IFRS) has a special role for the users of information from financial statements to obtain support for their decisions. Problems in the analysis and comparison of financial reports and differences in taxation practices among countries made necessary the application of International Accounting Standards. Recent years in many countries there is a tendency towards harmonization of the use of IFRS. In this sense IFRS represent a set of accounting standards that enable the compilation of comprehensive and transparent financial reports. The implementation of the Accounting Standards affects the quality and reliability of the financial statements. The reliability of the financial statements and their publication increases the transparency of the financial results of the economic entities. Qualitative financial reporting eliminates irregularities and reduces informality. Reliable financial statements affect the security of lenders and the attraction of foreign investments. In this way qualitative, transparent and reliable financial reporting has a great impact on the economic development of a country since the financial information provided by the financial statements of economic entities has a great influence on the decision making of investors, lenders and other interested parties. There are difficulties in applying accounting standards in practice, as financial reporting standards are complex, voluminous and often changing. Implementation of these standards requires certain knowledge from professionals. The level of application of IFRSs is low, the management of entities is oriented towards tax reporting. Entities are required to prepare up to four sets of financial statements (IFRS, taxes, management and banks). IFRSs provide sufficient basis for reporting for tax purposes. Professionals in the field of financial reporting have nowhere to address their problems. In the labor market in Kosovo, there is a lack of professional staff in the area of financial reporting. Educational institutions should increase the quality of education and produce the staff that the labor market in Kosovo needs</p> ER -