The purpose of this paper is to determine the indebtedness level of hotels operating in the Republic of Serbia during the period from 2008-2012. It is presumed that the weakened worldwide economy resulted in the decrease of general business solvency and increase of bankruptcy probability in all industries. Service providers have certainly not been left out, and hotels have been in the focus of this paper. We have collected available financial statements of hotels operating in the Republic of Serbia for the period from 2008-2012. We have calculated several bankruptcy prediction models including: Altman's Z' and Z''-score, M-score, Kralicek's df score and Z-score for hospitality industry. The results show that the average implicated bankruptcy probability increased in 2010 and 2011, and reached its peak value in 2011. When comparing 2008 and 2011, the average Altman's scores recorded decrease of approximately 70% and other scores confirm the same results. Therefore, it can be concluded that hotel industry in Serbia recorded the weakest results and has been insolvent and had the greatest risk of going bankrupt in 2010, and especially in 2011.

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Up until now accounting standards regarding financial instruments were changed several times. The latest change was the issuance of the IFRS 9 Financial instruments published for the purpose of simplifying the rules in its predecessor IAS 39 Financial instruments: recognition and measurement. From the above mentioned changes of accounting regulatory regime for financial instruments we may conclude that accounting bodies, so far, have not found the adequate approach and treatment for the financial instruments. They considered that fair value would be a revolutionary measure for the financial instruments and that this measure would provide more relevant, transparent and comparable information. But the standard setters did not predict that this measurement attribute might have an effect on earnings power and financial position of a company. In this paper we observe critiqually the main differences between IFRS 9 and IAS 39 regarding the recognition and measurement of financial instruments and with an emphasis on of some problems of early adoption of IFRS 9 by companies.

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Abstract:The purpose of this paper is to determine the changes proposed by the IFRS 9 -Financial instruments, regarding the classification of financial assets and its effects on the financial position of a business entity and the results of operations in comparison to the former criteria established by the IAS 39 Financial instruments: recognition and measurement. The issuance of the IFRS 9 in July 2014 was seen as the final stage in the project that IASB established regarding the financial instruments. The business model criteria used by the IFRS 9 are based on the financial, contractual cash flow incurred by the financial instrument or the cash flow caused by selling the instruments. Their proponents believe that these criteria are well-structured, objective and can be easily implemented by the users of financial statements. The former criteria in IAS 39 are based on the management intent regarding the instruments and some proponents of the new standard believe that they cause more judgment and earnings volatility than the newly established criteria. The purpose of this paper is to indicate that the change of classification criteria did not meet the specified goals regarding the comparability of financial statements and possible earnings volatility. The only goals met are related to information relevance and confidentiality.

Corporate Social Responsibility (CSR) reporting has been subject of various discussions of academicians and accounting practitioners. Although the importance of CRS reporting is not under question, the quality of disclosed non-financial information is still under review. In the light of the new Serbian Law on Accounting (Official Gazette of the Republic of Serbia 73/2019) and EU Directive 2014/95 requirements regarding non-financial information, this article investigates the state of non-financial reporting development in Serbian companies in the pre-EU Directive period in order to give suggestions to policymakers how to establish and structure the implementation of the EU Directive and expected challenges on this path. The current state of development of non-financial activities is measured by using content analysis and by creating a non-financial reporting index, namely the CSR index for the Serbian companies listed at Belgrade Stock Exchange. CSR index has been corelated with accounting variables (size of the company, auditor type (non/Big 4), revenue and financial results) in order to get deeper understanding of its value drivers.  Serbian companies, listed as large, audited by Big 4 and with better financial performance variables, are companies with the higher value of the CSR index and have a higher quality of non -financial reporting. Big companies can serve as a benchmark for the rest of the companies in the economy, but also those companies will have fewer challenges in the EU non-financial Directive implementation in the post-Directive period. Therefore, Serbian policymakers should focus their attention and implementation procedures on the rest of the economy struggling with the non-financial reporting.

Despite the efforts of companies to invest into CSR reporting and to communicate information to various stakeholders these efforts in Serbia are still at a very low level compared with the developed countries. In this study content analysis is conducted on a sample of companies comprising the list of all investors in Serbia investing more than 100 million € and classified into Privatization M&A and Greenfield investors. CSR disclosure index and Integration index are created and correlation has been established between the two, leading to the conclusion that companies that invest into the CSR reporting put much more effort to integrate financial and non-financial information. From the analysis, it emerges that Privatization segment of sample has a high level of content integration and CSR while Greenfield investor show low level of achievements in CSR and integration process. This paper calls for the need to establish long term orientation towards CSR issues and integration by Serbian foreign investors companies.

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