The aim of the thesis is to show the specifics of construction accounting on the example of company X through the presentation of input and output accounts, the presentation of the compilation of Forms PD-NN, the effects of the application of different accounting standards on the stated financial position and financial performance of the company. The specifics of business in the construction sector are: types of contracts (construction contract, fixedprice contract and cost-plus contract), transfer of tax liability (transferring the obligation to pay VAT from the seller to the buyer), temporary and completed situations for works that last longer period. The main research hypothesis is that there is a significant difference in the reported financial success of business in the construction sector with regard to the application of Croatian financial reporting standards and International accounting standards. Financial statement analysis procedures were carried out through horizontal analysis, vertical analysis, analysis using indicators and the BEX index. 89 The sample of the research is three companies that are obliged to apply the Croatian Financial Reporting Standards and three companies that are obliged to apply the International Accounting Standards. The research showed that there is a difference in the performance of business in the construction sector with regard to the application of standards, and the hypothesis is accepted.