MEĐUNARODNI STANDARDI FINANSIJSKOG IZVEŠTAVANJA U REPUBLICI SRBIJI I ZEMLJAMA OKRUŽENJA

The harmonization of financial reporting standards at the international level is of exceptional importance for numerous users of financial statements in the context of business globalization. Full International Financial Reporting Standards and the International Financial Reporting Standard for Small and Medium-sized Entities are widely adopted and serve as the foundation for financial reporting by reporting entities in a large number of countries worldwide. The objective of this research is to identify the similarities and differences in the application of full IFRS and IFRS for SMEs in the Republic of Serbia and selected neighboring countries, as well as to determine the conditions for their implementation. The observed neighboring countries include Bosnia and Herzegovina, specifically its two entities, the Federation of Bosnia and Herzegovina and the Republic of Srpska, the Republic of North Macedonia, the Republic of Montenegro, the Republic of Croatia, and the Republic of Bulgaria. A comparative analysis of financial reporting standards applied in the Republic of Serbia and those used in neighboring countries provides insight into the degree of alignment of their financial reporting frameworks. Using a qualitative research methodology, the study finds that differences exist in the application of full IFRS and IFRS for SMEs between the Republic of Serbia and its neighboring countries. These differences primarily pertain to the categories of enterprises required to apply full IFRS and IFRS for SMEs, with variations observed between Serbia and the surrounding countries.