Author: Prof. Dr. Džafer Alibegović

This paper explores the challenges of valuing companies operating in sustainable industries, with a special focus on the integration of ESG factors and investment flexibility into traditional valuation models. By combining theoretical insights and case studies of the companies Ørsted, Tesla and Vestas, the research shows that conventional models based on discounted cash flows often fail to capture the long-term strategic advantages of sustainability-oriented firms. The findings indicate that ESG performance positively affects risk perception, cost of capital and the stability of cash flows – key variables in valuation. In addition, companies with a high capacity for innovation and strategic flexibility create additional value through “real options”, which classic models do not manage to quantify. In the context of developing countries such as BiH, ESG-based valuation is still at an early stage, but is becoming increasingly necessary given the evolution of global standards. The paper concludes that integrating ESG factors and real options approaches into valuation methods is not only ethically desirable, but also financially necessary for a realistic assessment of company value.

Author: Prof. Dr. Kosana Vićentijević

In the contemporary business environment, integrating sustainability into accounting practice is becoming necessary due to the growing demands of regulators, investors and society as a whole. IFRS S1 and S2 standards represent new global regulatory frameworks that set unified requirements for the disclosure of sustainability and climate-related risks, thereby enhancing the transparency and reliability of non-financial reporting. This paper analyses the characteristics and innovative approaches of these standards, examining their role in integrating sustainability into modern accounting practice. Through a synthesis of relevant literature, regulatory documents and practical examples, the paper discusses the challenges and opportunities that IFRS S1 and S2 create for accounting professionals. Special attention is devoted to the impact of digital transformation on the application of these standards and its role in the development of sustainable business. The conclusion highlights the importance of continuous professional development and the adaptation of accounting practice in order to respond to the complex requirements of the modern sustainable business environment.

Author: Dr. Vildana Altumbabić

The public sector cannot function adequately without effective governance. Managing the public sector entails numerous challenges and responsibilities, with a large number of stakeholders having different interests and needs. One of the support mechanisms in this process is internal audit. The key role of internal audit in the public sector is realized through its assistance in risk management and ensuring transparency, integrity, quality and improvement of service delivery processes. In carrying out its role, internal audit in the public sector faces various challenges that need to be identified and addressed. This paper examines the challenges that internal audit in the public sector in the Federation of Bosnia and Herzegovina faces in fulfilling its role and objectives. Based on data from the Annual Consolidated Internal Audit Reports in the public sector in FBiH for the period 2017–2024, an analysis of the state of internal audit is conducted. It is concluded that internal audit in the public sector in FBiH suffers from the consequences of a lack of adequate staff, limited independence and operational capacity, as well as inadequate areas of audit engagement, which reduces its effectiveness and contribution to governance processes, as well as support from management, especially in the implementation of recommendations.

Author: Dr. Arijana Salkić

This paper analyses citizens’ perception of socially responsible banking operations in Bosnia and Herzegovina, with a focus on sustainable finance and ESG criteria. The research results show that citizens associate socially responsible banking with community support, environmental protection, ethical business conduct and respect for the rights of employees and clients. The need for greater transparency of banks through the publication of concrete data on ESG initiatives and their effects is highlighted. Sustainable finance and ESG strategies contribute to trust, risk reduction and strengthening the competitiveness of the banking sector.

Authors: Assist. Prof. Dr. Spasenija Mirković, Milka Blagojević, bacc.oec.

Modern society poses a whole range of challenges to its members, among which the long-term most significant is that related to the sustainability of development. This requirement is particularly emphasized in the case of companies, which are viewed as key actors in creating imbalances and environmental pollution. Therefore, in contemporary business conditions, companies must make radical changes in the way they operate: in defining strategic orientations and organizational culture, in the way production and business processes are carried out, and in their impact on the environment and communication with stakeholders. The paper examines the ways in which modern companies introduce the necessary changes in the function of sustainability, how companies in Bosnia and Herzegovina demonstrate their commitment to corporate social responsibility and the extent to which they are engaged in socially responsible activities.

Authors: Mr. Jasmin Hasančević, Mr. Miša Pavićević

The paper explores the role of the human being in the digital ecosystem through the lens of the transformations brought about by the digital revolution and artificial intelligence. It analyses how digital technology, from its beginnings to modern AI systems, shapes human behaviour, social relations and the labour market. Special focus is placed on the importance of human resources and their development in the context of intellectual capital, where knowledge, innovation and creativity are recognized as key drivers of competitiveness and sustainable development. It is emphasized that human resources are not just one component, but a fundamental factor that enables the transformation and growth of structural and relational capital. The paper also highlights the challenges of the digital era, including issues of privacy, data security and ethics, along with strategic recommendations for organizations to invest in knowledge, build a culture of trust and innovation, and align HR policies with business strategy. It is concluded that the human being in the digital ecosystem is both a creator and shaped by technology, and that artificial intelligence can be a key tool in building the sustainable development of human resources and intellectual capital.

Authors: Prof. Dr. Bojana Ostojić, Prof. Dr. Milena Cvjetković, Prof. Dr. Jelena Ružić, Prof. Dr. Biljana Ilić

Information technologies are advancing relentlessly, and the implementation of IT solutions contributes to improving the operations of companies in various industries. In order to ensure the integrity of vast amounts of data, while at the same time simplifying, accelerating and reducing the cost of transactions and business processes, the concept of blockchain was created. Blockchain technology, through a system of distributed consensus, enables network participants to be certain that information has been recorded through indisputable entries in the ledger. With its core characteristics – a decentralized database, security, transparency, immutability of data and smart contracts – blockchain enables direct communication between users, prevention of unauthorized access, visibility of the database for all network members, immutability of once recorded data, and the elimination of intermediaries through automatic execution of contract terms. Although it was originally developed for the needs of the cryptocurrency Bitcoin, the potential of this innovative technology was quickly recognized by numerous industries.

Authors: Safet Imamović, dipl.oec., Dr. Ema Burić, Dr. Admir Čavalić

Payroll calculation in Brčko District of Bosnia and Herzegovina is characterized by unique legal and administrative specifics that distinguish it from the rest of the country. Since Brčko District does not have its own pension and disability fund, residents can choose the fund to which they will pay contributions and from which they will receive a pension after the end of their working life, which provides additional autonomy to employees and employers. Special laws in the District regulate income tax, health insurance and unemployment insurance. The District has its own health insurance fund, employment agency and legal frameworks that allow non-residents to work while taking into account their actual tax residence. Such a payroll system requires a clear understanding of the legal framework of Brčko District and offers a degree of flexibility that may represent a model for more efficient management of contributions and employment-related rights. The aim of the paper is to present the entire payroll calculation system in Brčko District, with special reference to the specifics of the payment of mandatory taxes and contributions.

Author: Nedžad Jupić, bacc.oec.

The accounting profession in Bosnia and Herzegovina faces challenges arising from unclear professional boundaries and insufficient digitalization of business processes. Continuous professional education, although necessary, often includes topics that go beyond the core scope of the accounting profession, so accountants are trained in issues that are not part of their primary job description, such as certain aspects of legal regulations. At the same time, BiH is lagging behind in the implementation of global digital reporting standards, which negatively affects business efficiency and transparency. Progress requires clear definition of roles, adaptation of accountants’ education, encouragement of the development of digital tools, and establishing synergy between accounting, the IT sector and regulatory institutions. Only through a joint approach will it be possible to build a professional and modern accounting system that can keep up with the technical and regulatory challenges of contemporary business.