Name of Student

Geronimo Enguito
Mary Cor Sagrado
Michael Jay B. Homol
Title of the Scientific Paper
Consolidated Financial Statements – Means and Purpose of Preparation: Reasons of Not
Announcing of Consolidated Financial Statements in Bosnia and Herzegovina
Statement of the Paper’s Research Problem
 What is the significance of publicly presenting consolidated financial statements to users
towards their decision making process and evaluation of business performance of BH
firms?
 What induces BH firms for non-disclosure of its Consolidated Financial Statements
publicly?
Goals, Purpose, and Significance of the Paper
To identify possible problems or reasons of BH firms for not presenting Consolidated Financial
Statements publicly.
Framework Used in the Paper
Theoretical: Stating Significant Accounting Standards
Identification of Assumption(s), if applicable
 Consolidated Financial Statements plays a vital role in the decision making and financial
assessment of BH firms.
 Majority of BH firms do not adhere to the standards set forth by IAS due to the
complexity of its application.
Data Collection Methods and Analysis Used in the Paper
The researcher used actual financial statements taken from Agency for Financial, Informatics
and Intermediary Businesses in FBH and at the same time performed surveys.
Summary of the Results
Due to inadequate theoretical knowledge of IFRS in BH and incomplete legal solution this
accumulates a problem in the quality of financial reporting hence is associated with negative
consequences on the overall BH economy. Upon investigation of comprehensive financial
statements gathered form Agency for Financial, Informatics and Intermediary Business in FBH
for the period December 31, 2008 to April 2009 and based on the conducted surveys, it was
found out that only 1 out of 9 surveyed entity submit their consolidated financial statements to
Commission.
Three (3) Major Points of Agreement
 Financial reporting and its analysis serve as a tool for identifying problems of managing
the financial and economic activities of the company, to choose the directions for
investing in capital and forecasting certain indicators and financial performance in
general. (E.A. Osadchy, et. Al)
 Content and preparation of the financial statements differ by type of institution, according
to their kinds, depending on how their funding and business profile. (Carmen Cretu, et.
Al: Presentation of Financial Statements – a challenge to Professional Accountants.)
 BH firm must adhere to the standards set forth IAS.
Three (3) Major Points of Disagreement
 In EU member countries application of IFRS is mandatory only during preparation of
consolidated financial statements whose securities are quoted on stock exchange or they
are prepared for quoting, while freedom of own selection is left to other entities.
  Industry malpractices were permitted by accounting standards governing bodies.
 No continuing professional development.
Conclusions
Based on the study conducted, it was identified that poor utilization of consolidated financial
statements in business decision making process of FBH is the absence of their public
presentation. More so, governing bodies such as Commission for Securities should improve its
engagement in connection with control of fulfilling of requirements in connection with financial
reporting. It is manifestly identified that in order to formulate credible assessments and decision
of FBH firm’s top management in relation to financial performance and capability, preparation
and public presentation of consolidated financial statements pursuant to standards set forth by
IAS shall be mandatory.