Abstract Considering the burning problem of corruption and non-transparency of public enterprises in the Federation of Bosnia and Herzegovina (FBiH), the paper aims to investigate whether the Beneish M-score model can be used to predict inaccurate financial statements. Where, the cause of inaccurate financial statements are intentional or unintentional errors. On a sample of 200 financial statements of public enterprises and related audit reports issued by the Audit Office of the Institutions in FBiH, we made a link between the Beneish M score model with its partial indicators (DSRI, GMI, AQI, SGI, DEPI, SGAI, LVGI, TATA) and four types of opinions: positive, opinion with distraction, negative and refraining from giving opinions. The research was conducted using descriptive statistics and an artificial neural network with the “scaled conjugate gradient backpropagation (trainscg)” algorithm for pattern recognition and classification. The research results show that it is possible on the basis of 8 partial indicators (DSRI, GMI, AQI, SGI, DEPI, SGAI, LVGI, TATA) i.e. 24 balance sheet position for their calculation, predict the auditor’s opinion on the quality of financial statements of public companies with an accuracy ranging between 98 and 100% in repeated procedures. The results of the research have their practical usefulness and can serve to researchers, creditors, customers, suppliers and state auditors in planning resources and priorities for performing financial audits at public companies in the FBiH.

The paper aims to investigate the influencing factors for the choice of accounting specialization by students at ten public higher education institutions in Bosnia and Herzegovina (BiH). In addition to the above, the paper also explores the gender structure of the students, the type of secondary education, the time of making the decision to choose the field of accounting, and planned future training in accounting. The research sample consisted of 253 respondents, and data collection was performed by electronic survey through distance learning platforms. To identify the key factors in choosing to study accounting, we used the multivariate method of factor analysis of major components. The results of the research point to the existence of four key influencing factors in the selection of accounting specialization: achievement, job fulfillment, the influence of authorities in the field of science and profession, and the influence of parents and friends. Over 77 percent of the students are women, and the students have mostly completed general high schools (gymnasiums) or high schools of economics (92 percent). More than 98 percent of the students plan to continue their training in the field of accounting. The results of the research have practical use in terms of preparation and presentation of accounting policies at public higher education institutions in BiH, given that the reduced number of students has resulted in rival positions among different study areas. The results of the research can also be useful to professional groups in the field of accounting in terms of achieving their strategic goals.

According to both theoretical and empirical research results, this paper has the aim to determine, the extent to which the current accounting regulatory framework (IFRS 3 and IAS 36) offers an adequate basis for correct valuation of goodwill. We have researched all the available critical reviews of the accounting treatment of goodwill and the quality of applying accounting regulations onto expression of the goodwill position in BH companies’ practices. The empirical research was conducted on all the companies in the Federation of Bosnia and Herzegovina (FBiH), which recorded goodwill in their balance sheets in the period from 2013 to 2018. The research results have shown a high level of subjectivity in the process of determining the value of goodwill, and great discrepancies in adhering to the accounting regulations in the part of additional valuation and expression of goodwill value in financial reports. This resulted in the fact that the share of companies in FBiH which express decreased values of goodwill is far greater than the share of companies in the European union (EU). The main contribution of this paper is the fact that this is the first comprehensive research on evaluation of goodwill in FBiH companies in comparison to the situation in the EU. Also, it confirms the Agency Theory and shows great subjectivity in evaluation which results in an unjustified expression of a higher operative success in financial reports.

According to both theoretical and empirical research results, this paper has the aim to determine, the extent to which the current accounting regulatory framework (IFRS 3 and IAS 36) offers an adequate basis for correct valuation of goodwill. We have researched all the available critical reviews of the accounting treatment of goodwill and the quality of applying accounting regulations onto expression of the goodwill position in BH companies’ practices. The empirical research was conducted on all the companies in the Federation of Bosnia and Herzegovina (FBiH), which recorded goodwill in their balance sheets in the period from 2013 to 2018. The research results have shown a high level of subjectivity in the process of determining the value of goodwill, and great discrepancies in adhering to the accounting regulations in the part of additional valuation and expression of goodwill value in Þ nancial reports. This resulted in the fact that the share of companies in FBiH which express decreased values of goodwill is far greater than the share of companies in the European union (EU).

The paper has two research goals. The first goal is to investigate the prevalence of certain techniques of strategic management accounting in large companies in Bosnia and Herzegovina (hereinafter BiH), while the second research goal is to analyze the dependence of the number of strategic management accounting techniques used and the degree of development of the cost system in the company. For the purposes of this research, we collected survey questionnaires from 110 large companies based in BiH. The results of the research show that the three most common techniques of strategic management accounting in large companies in BiH are: Quality Costing (52.73%), Strategic Pricing (51.82%) and Benchmarking (50.91%), while the least common techniques are: Life Cycle Costing (11.82%), Attribute Costing and Integrated Performance Management Systems (with 12.73% each), and Activity Based Costing/ Management (17.27%). One-way analysis of variance (ANOVA) tested the differences in the number of strategic management accounting techniques used and the level of development of the cost system in companies. Companies that applied on average two techniques of strategic management accounting belonged to the first level of development, those that applied on average four techniques belonged to the second level of development, while companies that have the third level of cost system development on average applied six techniques of strategic management accounting. There were no companies in the sample with the fourth and fifth level of development of the cost system.

The paper presents an analysis of current obstacles in the adoption of energy efficiency measures, and presents concrete proposals for measures for the development of energy efficiency and renewable energy sources. Students from the 1st cycle of study at the Faculty of Economics, University of Tuzla participated in the research. The methodology used in the paper is based on the use of primary (survey questionnaire) and secondary (desk research) data sources. The results of the research showed that the biggest obstacles to the adoption of energy efficiency measures are the following, respectively: lack of information and promotional activities, lack of interest in environmental issues and energy consumption, underdeveloped consumer awareness of potential energy savings, and financial obstacles. Potential proposals for energy efficiency measures generally go towards the proper design of laws and regulations for energy efficiency standards, then the labeling of energy efficiency of products, and finally, the results of the study showed that financial incentive measures have a significant (positive) effect on increasing energy efficiency.The results of this paper can assist policy makers in creating economic and energy policies and strategies.

This article aims to provide information on the level of application of cost and management accounting practices in the budget-funded organizations in Bosnia and Herzegovina (hereinafter B&H) and the usefulness of these practices in the performance measurement in the B&H public sector. Namely, the current budget accounting system in B&H does not provide measurement and reporting on efficiency, effectiveness, and economy of the public administration, which results in a decrease in transparency and the creation of a favourable ground for corruption. Therefore, the study was conducted among 208 budget-funded organizations by using a survey questionnaire to evaluate the current level of theoretical and practical knowledge in the field of cost and management accounting and the possibilities for their application in the budget-funded organizations in B&H to improve current budget accounting system. Research results have shown that, even though respondents are less familiar with cost and management accounting practices, they believe that the introduction of new forms of accounting (cost and management accounting) into budget accounting system in B&H would improve the quality of accounting information as a basis for decision-making of the public management. This would enable performance measurement in the B&H public sector and therefore improve transparency and accountability of the public management.

The aim of the paper is to clarify and systematize the methods of evaluating customers’ profitability on a scientifically based methodology. It also aims at investigating the relationship between business results achieved by individual sectors in the companies from the Tuzla Canton (TC) and the applied method of profitability management, in the function of generating such results. The analysis was conducted on the appropriateness of the current approach to profitability management according to information resources which served as the basis of the approach. Certain limitations were identified, which in practice lead to an inaccurate evaluation of customers’ profitability. The transitional economy, characterized by macroeconomic instability and a low competitiveness factor in general, along with other numerous external limitations, requires that companies effectively rearrange their value chain, in the function of finding internal resources, in order to achieve long-term profitability of the customer portfolio management. The origin of modern trends in creation and maintenance of comparative advantages of the company lies in adoption of the “Customer Relationship Management” (CRM) business philosophy. The research results indicate insufficient knowledge of the management about the key “drivers” of success in achieving comparative advantages and point to inadequate organization of the accounting function which is not able to support a modern approach to business performance management. Keywords: Profitability management, customers’ profitability evaluation methods, sectorial analysis of business indicators, transition economy, Tuzla Canton

This paper provides a critical aspect of the position of the industrial sector in the transition economy of Bosnia and Herzegovina. If we observe sectors C-exploitation of coal and stone, D-processing industry, E-production and distribution of electric power, gas and steam, as per NACERev.1 classification, and sectors B-exploitation of coal and stone, C-processing industry, D-distribution of electric power, E-water, sanitation and recycling as per NACERev.2 classification, then from 2007 until 2012, their participation amounts to: 14.49%, 14.37%, 14.20%, 14.02%, 13.80%, 12.75% respectively. The paper observes the internal and the external reasons of the poor state of the industrial sector, and determines a possibility of its strengthening through recommendations that sum up results of the conducted research.

This paper shows the results of the conducted primary survey on functionality of cost systems in manufacturing companies of Tuzla Canton (hereinafter “TC”). This paper assesses their adequacy to the needs of these companies: the present needs, and the ones that will be brought by the changes in the environment. These systems have to be up-to-date, as they influence the process of cost management, which is the key factor of companies’ adaptation to the conditions of a modern market. Cost management, which is based on the information of a cost system, enables the company to take the adequate stand towards customers on markets and toward their competition. Also, the quality cost information is a precondition for effective and efficient allocation of limited resources in a transitional period of society development. Therefore, only quality designed cost system in transitional economy will enable recovery, and then, growth and development of a company. This emphasizes the importance of research of the stated issues for transitional countries. The research results should also help to persuade the management about the need to modernize the operation organization, primarily the accounting function, mainly in the part of cost system organization. The determined defects, as well as deviances in relation to current needs for information about costs, are guidelines for an adequate process of redesigning cost systems in companies of transitional economy.

This paper presents the results of the primary research regarding management relations towards accounting information that is used in the business decision making process applied in manufacturing companies of the Tuzla Canton (here on: “TC”). The research commences from the fact that the interaction between accounting function organization quality and business decision making is important, because it has direct effect on applied practice when managing operating performances of a company. Taking into consideration management relations towards accounting information in the decision making process, dysfunctional areas within accounting function organization segments are identified. This opens up possibilities to affect modernization of the performance management through the process of redesign of those dysfunctional areas. According to our knowledge, similar research has not been conducted on the area of B&H manufacturing companies' operations.