COMPARISON OF NATIONAL ACCOUNTING FRAMEWORK - THE CASE OF CROATIA, SLOVAKIA AND CZECHIA

Harmonization and standardization of accounting, as well as the overall business, represent a principal feature of present globalization. National legislation is harmonizing with the European Union acquis communautaire by the accession of individual country to the European Union. Regulation (EC) No. 1606/2002 of the European Parliament and the Council introduced a mandatory application of International Accounting Standards, and now known as International Financial Reporting Standards for all listed companies in the EU member states. The goal was to provide a high level of transparency and comparability of financial statements of listed companies through the introduction of the mandatory application of International Accounting Standards. However, national accounting framework is of great importance for financial reporting in every country. National accounting framework has an essential role in determining the major rules of keeping accounting records, defining chart of accounts, preparing annual financial statements and the application of national and/or international accounting standards. Accountants have a key role in recording of business transactions and preparing of financial statements. In performing these tasks accounting skills are essential. Professional associations have an important role in the promotion and development of the accounting theory and practice. The main purpose of this research was to investigate the regulatory framework of accounting and financial reporting and to examine the organization of the accounting profession in selected EU member states - Croatia, Slovakia and Czechia. The results indicate that there are differences and unevenly practice in the field of accounting regulations as well as in the organization of the accounting profession. The comparison of Croatian, Slovak and Czech accounting regulation focuses not only on differences but as well as on similarities, which can indicate better comprehension the national accounting rules.