Voluntary Disclosure Practice In The Annual Report – Practice Of Croatian Managers

This study investigates the level and extent of voluntary disclosure practice in the annual report, based on the sample of 130 Croatian medium and large companies. The disclosure level is determined by the quantity of voluntarily disclosed financial and non-financial information in the annual report. Obtained results indicate very low level of transparency, as the companies have disclosed in average only 11 items out of possible 38. Furthermore, an in-depth analyses of voluntary disclosure frequencies in the following seven key business areas is conducted: business data, management analyses, risk management, information about management and owners, organization background, intangible assets and other useful information. The results indicate that the majority of Croatian managers believe that the annual report should include only letter of the Board while the information about intangible assets, in particular about relations with investors, employees, customers and suppliers are usually not disclosed.