Journal of Accounting and Management Information Systems (JAMIS)

IFRS application in Slovenia

Vol. 13, Nr. 2/2014 ,   p351..372


Keywords:   Slovene accounting model, Slovene accounting standards, institutional framework, IFRS, IFRS application

Thepaper aims to present the most important characteristics of the evolution ofthe accounting system in Slovenia,emphasizing the most important features of the national accounting standards aswell as the institutional framework that has affected the accountingdevelopment. Sloveniais a code law country with underdeveloped financial markets, dominant bankfinancing, close linkage between financial accounting income and taxable incomeand a small auditing profession. IFRS are mandatory for all companies withpublicly traded securities for consolidated financial statements and for allbanks and insurance companies. All other companies report in accordance withnational accounting standards, although they have an option to apply the IFRSfor their consolidated as well as separate annual financial statements. Sincethe number of entities in Sloveniathat prepare their financial statements in conformity with IFRS is ininternational terms rather small, our literature review reveals that studiesabout IFRS implementation in Sloveniaare lacking. Until now there have been just a few studies exploring the levelof IFRS compliance. The paper draws attention to possibilities for futureresearch from the field of value reliability and value relevance.