Risk Disclosure Practices in Annual Reports of Listed Companies: Evidence from a Developing Country

Abstract

Introduction of IFRS 7 by International Accounting Standards Board adds to the quality of risk disclosure practices to be exercises by all preparers of financial statements. It is expected to provide potential investors the opportunity to better evaluate financial risk exposures of entities holding material financial assets and liabilities. Our main objective was to evaluate the quality of risk reporting practices of Macedonian listed entities subsequent to introduction of IFRS 2009 and provide empirical evidence on the state of compliance with IFRS 7