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Highly effective hedging can be any hedge relation that offsets all or most of the risk in the hedged portfolio. The reduction of volatility is the explicit or implicit measure for hedge effectiveness. This paper examines the estimation of the optimal hedge ratio using two measures of hedging effectiveness (Standard Deviation Analysis, Coefficient Variation Analysis) on a hedge relation of WTI crude oil and futures underlying WTI crude oil. Three quantitative methods (Ordinary Least Squares Regression Method, Bivariate Vector Autoregression Method, Vector Error-Correction Method) for estimating hedge ratios were compared in order to determine their effectiveness. According to the criteria of hedge accounting requirements, the Ordinary Least Squares Regression Method was estimated to be the most effective one. The simulation of two reporting periods was made and the hedge ratio was permanently effective.

Companies and public budget accounting systems are being constantly renewed as a consequence to the constant change of International Financial Reporting Standards. The papaer discusses the process of harmonisation of Croatias accounting system with the international one and the EU.

Financial Reporting, organized in two core areas as internal and external financial reporting, reached a very high scientific and professional level. These two areas of accounting flow from the same informational base. Financial reporting to internal and external users, and internal managerial accounting, developed into two separate directions, but along the way lost all common characteristics. An area important to both, where it is necessary and possible to set up a compliant accounting reporting system is the reporting by operating segments. Global processes require harmonization of internal and external reporting systems in order to make the preparing, presenting and interpreting of the financial statements content more efficient. Based on identified informational needs of internal and external reporting by business segments and reached levels of standardization, this paper analyzes the characteristics and factors of further harmonization.

Process of creation of world bussines system gradually imposes harmonization needs on international level, even in accounting.

It is extremely important for an individual company’ s business to have necessary current assets available at all times, as well as structure synchronized with flow of current assets in the business process. In order to achieve this, it is necessary to plan and anticipate current assets needed before the beginning of production process. It is also necessary to calculate volume and forms of current assets needed for undisturbed production process. Suggested financial planning model, as inevitable part of every business plan or investment project, includes the projection of every individual form of current assets and cash budget adapted to data processing. It has been established that budget of current assets and cash budget can easily be adapted to data processing. Anyway, it should be emphasized that the financial planning model is possible only with accounting as integral part of total information system.