THE IMPORTANCE of INTERNATIONAL FINANCIAL REPORTING INTEGRATION FOR NON-PUBLIC JOINT STOCK COMPANIES OPERATING in the TRANSPORTATION and LOGISTICS SECTOR

With the increasing globalization of the world, the commercial environment has become more interconnected, making an economic disadvantage in one region of the world potentially impact the entire world simultaneously. In such an interconnected and globalised world, the acquisition, transfer, accuracy, and comparability of financial information is an important issue for many different actors, such as investors, economists, and auditors. The increased digitization of business after the COVID-19 pandemic and the increased involvement of the Internet in business have made it easier for different countries to interact with each other, leading to trade reaching global dimensions. It has therefore become an important issue for companies operating in different countries and even within the same country to have a common financial reporting system. Public companies (International Board of Accounting Standard) have issued the International Accounting Standards (IFRS) since 1973 to meet the need for a common reporting requirement in financial statements. However, the IAS/IFRS reporting system has not adequately addressed the needs of SME who are the driving force behind global trade. Due to the complexity and cost-effective implementation of the IAS/IFRS set and the different structures of the public enterprises in the transport and logistics sector, there has been a need to establish separate reporting standards for the SMEs operating in the transport and logistics sector. We highlighted the importance of a separate, easy-to-implement, comprehensible financial reporting standard for SME and discussed the difficulties faced by SME operating in the transport and logistics sectors in implementing IAS/IFRS.