International financial reporting standards

By Mia RodicBusiness in Serbia
  1. MSFI – International financial reporting standards (IFRS)
    MSFI are international standards that apply to large legal entities and those that are required to prepare consolidated financial statements. These standards provide guidance on how reports should be prepared according to globally accepted principles and valuation methods. MSFI provide a detailed framework for presenting financial data that enables investors and regulators to make informed decisions.
    • Mandatory application of MSFI:
  • Large legal entities
  • Legal entities that prepare consolidated financial statements
  • Public companies and companies aiming to become public
  1. MSFI for SMEs – International financial reporting standards for small and medium-sized enterprises
    MSFI for SMEs represent a simplified set of rules tailored to the needs of smaller businesses. Small and medium-sized enterprises (SMEs) can choose between applying MSFI for SMEs or full MSFI, depending on the size and needs of their business.
    • Which legal entities should apply MSFI for SMEs?
  • Small and medium-sized legal entities, but they still have the option to switch to full MSFI.
  1. Regulations for micro and other legal entities
    Micro legal entities and other legal entities that are not established for profit (e.g., organizations with a public character) can decide to apply a bylaw issued by the minister responsible for finance. This bylaw is based on general accounting principles, but micro legal entities can opt to apply either MSFI or MSFI for SMEs.
    • How is the basis for valuation determined?
  • Micro legal entities, by law, must apply the regulations for micro and other legal entities, but they can choose to use MSFI or MSFI for SMEs.
  1. Valuation rules based on the size of the legal entity
    The laws applied to financial reporting ensure that valuation rules are applied according to the size of the legal entity. Size is determined based on the previous year, meaning that for the following business year, the size of the legal entity for 2024 will be taken into account, even if it changes for 2025.
    • Classification of legal entities:
  • Size is used for classification and applying the appropriate valuation rules.
  1. Continuity in the application of valuation rules
    It is important to note that legal entities that choose to apply a certain valuation rule (whether basic or alternative) must apply it continuously for at least five years. These rules are crucial for the long-term stability of financial reporting and preventing frequent changes that could compromise the accuracy and usability of the reports.
    • Continuity in the application of rules:
  • Legal entities that choose an alternative rule must apply it for at least five years.

 

Tax International offers the following services:

Accounting services
Tax consulting
Company and business registration
Payroll calculation
Freelance tax calculation
Issuing invoices and similar administrative tasks

We provide both online and onsite services.

+381216619789 +381611301302 office@taxinternational.biz

You can schedule consultations HERE.

For all our clients, consultations regarding reimbursement of employee expenses are completely free.

Follow us on social media:

Our Instagram page: https://www.instagram.com/tax_international/

Our LinkedIn page: https://www.linkedin.com/company/2464030/admin/dashboard/

Our TikTok: https://www.tiktok.com/@yourtaxinternational

Our Facebook page: https://www.facebook.com/profile.php?id=100063686913526

Thank you for your attention!

visit us on our Serbian website.