Abstract:

            The financial accounting is the basic tool which gives necessary data to all its users, not only for assessment of the company performance in the past, but also for the ability to make proper decisions in the future, which will lead to positive influence of company´s activities. Development of the global economy place requires the harmonization of accounting method that would lead to the creation of a single global worldwide used and acceptable accounting system. The European Commission decided to gradually harmonize the accounting and reporting system of the EU with the IAS/IFRS system, which is (together with US GAAP) worldwide applicable and acceptable accounting system. International financial reporting standard for small- and medium-sized entities (IFRS for SME) has been valid since 2009 and its purpose is to create the set of rules for financial reporting, which will balance the costs and benefits connected with their application. From the point of view of accounting entities, standard-setters on national accounting legislation and standard-setters of IFRS for SMEs, the harmonization of financial accounting in Europe face many issues. However, overcoming these obstacles would increase the usefulness of the final statements of small- and medium-sized entities. This paper presents original results of differences among IAS/IFRS full version for public traded companies and version for small- and medium-sized (non-public traded) entities. These differences were caused by abandoning alternative approaches for accounting policies and partial areas in simplified version for small- and medium-sized entities, simplification of bookkeeping methods, assessment and presentation.