Principles of transparent financial reporting as the basis of financial statements quality control

Financial reporting is of great importance to investors and other participants in the financial market, through decisions regarding the allocation of their resources, as well as to regulatory bodies and many other users. The confidence of all these users in the transparency, integrity and quality of financial reporting is essential to global financial stability and balanced economic growth. The financial crisis, whose consequences continue to be felt, has exposed weaknesses in accounting standards and their implementation. These weaknesses impair the credibility of financial reporting, which contribute to a general loss of confidence in the financial system. In order to identify the key role of the general purpose of financial reporting that it has for the financial system, four principles have been established, by FCAG (Financial Crisis Advisory Group), which financial reporting must fulfill. The principles of transparent financial reporting are as follows: Effective Financial Reporting, Limitations of Financial Reporting, Convergence of Accounting Standards and Standard Setter Independence and Accountability. Improvements in standards that increase transparency and reduce complexity, can also help restore confidence in financial market and thus serve as a catalyst for increased financial stability and economic growth. For this reason, the paper deals primarily with the issues of standardization, but also the quality control of financial statements in current conditions.