Financial Reporting of Budget Users in the Republic of Serbia

Abstract

According to positive regulations in the Republic of Serbia, budget accounting is used by legal persons that perform non-economic activities and are funded from budget assets. The need for information about the use of budget assets has played an important role in creating accounting practice and the practice of composing and revealing financial statements for budget users. In the financial reporting of budget users, the International Public Sector Accounting Standards (IPSAS) are used. IPSAS determine the rules for recording individual business transactions as well as composing and revealing financial reporting. Financial statements composed on the basis of IPSAS present information grounds for reporting on the government’s business. The paper points out the similarities and differences between budget accounting and the accounting of profit-oriented enterprises, accounting bases for the financial reporting of budget users and the financial statements of direct and indirect budget users in the Republic of Serbia.