Financial reporting as an instrument to protect creditors` interest in corporation subsidiaries
Informing creditors on the assets, liabilities, results and net cash of informing entities in order to make appropriate decisions on investments is considered one of the main objectives of fnancial reporting. Financial reports can fully contribute to protection of creditors` interest only under cond...
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| Format: | Article |
| Language: | English |
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University of Banja Luka, Faculty of Economics
2012-02-01
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| Series: | Acta Economica |
| Subjects: | |
| Online Access: | http://ae.ef.unibl.org/index.php/AE/article/view/133 |
| _version_ | 1828436842894065664 |
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| author | Ката Шкарић Јовановић |
| author_facet | Ката Шкарић Јовановић |
| author_sort | Ката Шкарић Јовановић |
| collection | DOAJ |
| description | Informing creditors on the assets, liabilities, results and net cash of informing entities in order to make appropriate decisions on investments is considered one of the main objectives of fnancial reporting. Financial reports can fully contribute to protection of creditors` interest only under condition that they present actual state of fnancial and yield position of reporting entity. Financial reports of subsidiaries have limited reference power due to their lack of economic independence. Tey nearly always present fnancial and yield position designed by the measures of a parent company. Creditors of subsidiaries should have this fact in mind when assessing the credit worthiness of debtors which are subsidiaries. Te use of information on fnancial and yield position of a company as a whole cannot completely remove restrictions on informational value of individual reports of subsidiaries, but they can certainly be mitigated. |
| first_indexed | 2024-12-10T19:34:24Z |
| format | Article |
| id | doaj.art-da6d4e5f8dc5454984e7fcebb1c31929 |
| institution | Directory Open Access Journal |
| issn | 1512-858X 2232-738X |
| language | English |
| last_indexed | 2024-12-10T19:34:24Z |
| publishDate | 2012-02-01 |
| publisher | University of Banja Luka, Faculty of Economics |
| record_format | Article |
| series | Acta Economica |
| spelling | doaj.art-da6d4e5f8dc5454984e7fcebb1c319292022-12-22T01:36:10ZengUniversity of Banja Luka, Faculty of EconomicsActa Economica1512-858X2232-738X2012-02-011016Financial reporting as an instrument to protect creditors` interest in corporation subsidiariesКата Шкарић Јовановић0Faculty of Economics, University of BelgradeInforming creditors on the assets, liabilities, results and net cash of informing entities in order to make appropriate decisions on investments is considered one of the main objectives of fnancial reporting. Financial reports can fully contribute to protection of creditors` interest only under condition that they present actual state of fnancial and yield position of reporting entity. Financial reports of subsidiaries have limited reference power due to their lack of economic independence. Tey nearly always present fnancial and yield position designed by the measures of a parent company. Creditors of subsidiaries should have this fact in mind when assessing the credit worthiness of debtors which are subsidiaries. Te use of information on fnancial and yield position of a company as a whole cannot completely remove restrictions on informational value of individual reports of subsidiaries, but they can certainly be mitigated.http://ae.ef.unibl.org/index.php/AE/article/view/133Financial reportingprotection of creditors` interestfinancial reports of subsidiarieslimitationsparent companysolvency assessment |
| spellingShingle | Ката Шкарић Јовановић Financial reporting as an instrument to protect creditors` interest in corporation subsidiaries Acta Economica Financial reporting protection of creditors` interest financial reports of subsidiaries limitations parent company solvency assessment |
| title | Financial reporting as an instrument to protect creditors` interest in corporation subsidiaries |
| title_full | Financial reporting as an instrument to protect creditors` interest in corporation subsidiaries |
| title_fullStr | Financial reporting as an instrument to protect creditors` interest in corporation subsidiaries |
| title_full_unstemmed | Financial reporting as an instrument to protect creditors` interest in corporation subsidiaries |
| title_short | Financial reporting as an instrument to protect creditors` interest in corporation subsidiaries |
| title_sort | financial reporting as an instrument to protect creditors interest in corporation subsidiaries |
| topic | Financial reporting protection of creditors` interest financial reports of subsidiaries limitations parent company solvency assessment |
| url | http://ae.ef.unibl.org/index.php/AE/article/view/133 |
| work_keys_str_mv | AT kataškarićǰovanović financialreportingasaninstrumenttoprotectcreditorsinterestincorporationsubsidiaries |