Corporate reporting is defined as a reporting of companies or joint stock companies whose securities are usually quoted on capital markets, which is the basis for efficient business decision making and a prerequisite for the efficient functioning of the capital market. Capital supply and demand are met on the capital market and lack of relevant information from the capital market discourages investors and removes them from the market resulting in the inefficiency of the capital market itself. In this group we include the problem of information asymmetry, moral hazard and unfavorable choice. The financial reports are used as a basis for making business decisions. The quality of the financial statements is a prerequisite for quality business decisions, and in order to bring quality business decisions, it is important to understand and know how to read all the financial statements. Current financial reporting is based on conceptual frameworks, and most known are the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). The financial statements include the balance sheet, profit and loss account, cash flow statement, statement of changes in equity and notes to financial statements. Financial statements also often involve manipulation of financial statements. After following the adoption of two accounting directives on the accounting and corporate sector, and the fourth (IV) and seventh (VII) directives, the level of transparency and comparability of the expected financial statements was not achieved, and because of that the Regulation on the Application of International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) and the Transparency Directive was brought.