Improving Ways of Accounting Reporting

Abstract

The article discusses how important is the financial reporting to investors. Entrepreneurs need an adequate capital for their economic activities. This requires private capital raising from an owner or foreign capital raising from a creditor. Self-financing is considered appropriate for share companies, because the shares as financial papers have a perpetual contract and a changeable interest rate. In addition, it is possible to invest shares in the exchange market so that they can get a wider scale: capital growth is possible through attracting many investors. It shows that the primary reason for making international reporting includes investors’ protection. This mechanism of protection will facilitate to gather the necessary information to make some decisions that will ultimately affect economic conditions of entrepreneurs.