Authors: Assist. Prof. Dr. Malči Grivec, M.Sc. Maša Pusulić

This paper examines the integration of ESG factors (environmental, social and governance criteria) into contemporary financial management strategies, considering the topic through theoretical, regulatory and practical frameworks. Special emphasis is placed on the role of ESG in the evolution of financial decision-making, where sustainability and responsibility become goals alongside profit. Key international standards (GRI, SASB, TCFD, ISSB) and European regulations (EU Taxonomy, SFDR, CSRD) are analysed, as well as empirical evidence indicating links between ESG performance and better financial outcomes, lower risk and stronger investor trust. The paper presents examples of good practice from the private sector (multinational companies, banks, investment funds) and the public sector (state policies, green instruments, public finance), illustrating how ESG principles are embedded across different levels of the financial system. Major challenges are also highlighted—data fragmentation, “greenwashing,” and the need to develop new knowledge and skills among managers. The paper concludes that ESG integration is not a passing trend, but a structural change shaping 21st-century finance and enabling companies to create long-term, sustainable value.

Authors: Prof. Dr. Adnan Rovčanin, Željka Stanić, Alma Krznarić

The aim of this paper is to determine the effects of Trump’s tariffs on global trade and the economy. For the purposes of the study, literature from multiple sources was used and movements in relevant indicators were monitored, such as stock market indices as well as oil and gold prices. The paper begins with parallels between the current situation and the tariffs introduced in 2018, with a brief reference to U.S. protectionist trade measures from the Great Depression era. This is followed by a chronological overview of current developments and a comparison of the intended and actual outcomes of the tariffs. The second half and conclusion address the potential long-term effects of Trump’s tariffs on global trade and the economy as a whole.

Authors: Prof. Dr. Dijana Vuković, M.Sc. Irnesa Kujundžić, Samra Civić

Internal audit is a key function in modern business, enabling companies to improve internal control systems, manage risks more effectively and optimize business processes. The internal audit function has evolved from simple control in small enterprises into a complex and professionalized function integrated within the governance structure of large organizations. This paper clarifies the difference between internal and external audit, the core activities of internal auditors, and their contribution to organizational stability and success. The aim of the paper is, through theoretical and empirical analysis of the development and role of internal audit, to examine its importance in contemporary organizations and, based on research conducted in Bosnia and Herzegovina, to determine how internal audit contributes to improving business processes, strengthening governance accountability and supporting higher-quality business decision-making in companies.

Author: Dr. Advija Alihodžić

The lack of literature in the area of insurance companies’ operations in crisis situations, and how to prevent such situations, motivated the author to present this paper. The aim is to encourage insurance company managers in Bosnia and Herzegovina to prepare in a timely manner to respond to crisis prevention and to act appropriately if crises occur, since insurance companies—regardless of ownership structure—are of public interest. The paper consists of four parts: introduction, preventive management of business crisis, identification of crisis causes, and conclusion. The introduction provides a brief overview of the insurance market situation in 2024 in Bosnia and Herzegovina, defines crisis operating conditions as an unplanned and undesired period of limited duration with an uncertain outcome, and lists the most common types of crises (liquidity, business performance, solvency, competitiveness, HR crisis). The second part covers preventive crisis management (symptoms, action plan, strategy, crisis management, staff training, forecasting and prevention). The third part discusses identifying and managing causes of crisis, introducing controlling, and timely decision-making regarding the formation of a crisis management team. The conclusion provides recommendations for managers to be operationally and strategically prepared for doing business in crisis conditions.

Authors: Dr. Ankica Čanić, Dr. Azira Osmanović

Accounting fraud is an everyday phenomenon today, particularly in corporate income tax calculations. Its essence lies in applying accounting procedures that result in an incorrect tax base. Corporate income tax calculation is prescribed by relevant accounting and legal regulations that must be fully complied with. However, individuals sometimes circumvent or violate prescribed provisions, thereby committing accounting fraud with the aim of calculating and paying a lower corporate income tax. Inspection supervision is a procedure for determining the correct tax base. Inspectors perform review and verification activities of accounting documentation, as well as checks of bookkeeping records. By detecting accounting fraud, hidden corporate income tax liabilities are revealed, which leads to the assessment of additional tax obligations and, consequently, to uncovering tax evasion and its perpetrators.

Author: Dr. Milica Vidović

Input tax, in relation to a taxable person, is the amount of VAT charged on the supply of goods or services to that person and the VAT paid or payable on the import of goods, where (in both cases) the goods or services are used or are to be used for the purposes of the business. The taxable person has the right to deduct VAT that they are obliged to pay or have paid when purchasing goods or services, provided that they use them for supplies subject to VAT. Article 32 of the VAT Law prescribes the conditions for exercising the right to deduct input VAT. The Instruction on the Submission of Data from Accounting Records prescribes the method, procedure and deadlines for submitting records (e-KUF and e-KIF), while the technical instruction defines document types. Under VAT regulations, the supply of services includes “all operations and activities that do not constitute the supply of goods,” i.e., all supplies within an activity that are not considered supplies of goods. In domestic transactions, a registered VAT payer charges output VAT on the sales invoice, except for exempt services. In transactions involving services between domestic taxpayers and foreign entities, there are numerous specificities: services invoiced abroad may be exempt or taxable in Bosnia and Herzegovina, and for services invoiced from abroad, the domestic taxpayer may have an obligation to calculate and pay VAT. The paper presents the most important provisions on input VAT deduction and taxation of services and explains, through practical examples, the tax treatment of different situations.