Business Administration and Business Economic
Abstract
The purpose of this paper is to assess the quality of disclosures related to financial
instruments provided in annual financial statements of Macedonian listed companies and empirically
investigate factors that have the potential to influence the quality of these disclosures in accordance
with IFRS 7 requirements. Based on the postulates and the results of the empirical investigations of
prior IAS compliance studies I have constructed a disclosure index for each listed company and
performed regression analysis with independent variables representing some characteristics of listed
companies investigated, such as their size, industry, type of auditor engaged, ownership concentration,
profitability and leverage. My regression analysis results supported the conclusion that the level of
compliance with IFRS 7 requirements is related to the type of auditor engaged and ownership
concentration in investigated companies. The results of my research will contribute the large body of
empirical studies on IFRS disclosure and compliance, providing evidence from South-East European
Transitional Economy that adopted IFRS as national financial reporting framework.
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