In the past years in the Republic of Croatia, the public is a witness of a number of affairs relating to the manipulated financial statements of the largest domestic companies. Situations like this, in Croatia and abroad, have awakened already existing interest for financial statements, reporting and general disclosure of reports. The financial statements are the result of the collection, analysis, and processing of financial data used by different interest groups to a better understanding of the business operations of the company and to make "right on time" and accurate business decisions, though reducing the risk of doing business. Interest groups interested in financial statements are shareholders, business partners (eg banks), potential investors, government institutions (eg Tax Administration) and more. The structure and content of the financial statements in the Republic of Croatia are formalized in accordance with International Financial Reporting Standards (further in text: IFRS) and International Accounting Standards (further in text: IAS), whose subject is a large corporate entities. Croatian Financial Reporting Standards (further in text: HSFI ) are required for medium, small and micro-enterprises. Analyzing the characteristics of the financial statements, reporting obligations, accounting roles, and financial indicators in this thesis, I will compare the essential differences between the Croatian Financial Reporting Standards (HSFI) and the International Financial Reporting Standards (IFRS). The focus of this thesis will be the notes to the financial statements as they are the last basic financial statements that further clarify the value and nature of certain positions in the balance sheet, income statement, and cash flow statement. The notes are extremely important because they should contain all the information that is not directly seen in the financial statements and are necessary for their understanding and also for business assessment. Their role, the legislative framework, the comparison of regulations under HSFI and the IFRS, as well as an explanation of certain notes will be elaborated through a sample of practice reports. At the end of the thesis is an example of financial statements of the Croatian biggest company (the main strategical enterprise in Croatia) and comparism of important notes from the old (manipulated) report and the new report, which shows huge differences in the description and amount of certain position in financial statements. The well-known in the business world, auditing company manipulated financial reports with the management of the company, leading to major problems with suppliers, creditors and tax administration.