Recent studies in the field of corporate governance are aimed at defining the extent to which the quality of financial reporting affects the further development of a company. Due to asymmetry of information possessed by management, and caused by conflicted interests regarding the disposition of earnings, a problem of manipulation in the financial statements occurs, so the owners and other investors and creditors have to be included in the implementation of the supervising mechanisms. Market globalization poses increasingly difficult tasks to the company, because competition is increasing. It is easier for investors to invest in shares of companies with reported earnings, with that the share price, as well as the market capitalization increase, and it is easier to obtain funding sources. Because of the pressure or fear of loss of corporate reputation, manipulation starts being used as a form of influence on the company's result. Due to increasing number of proven fraud, various systems of protection in the form of laws or principles are introduced. There is an increase of interest in more research that would indicate the importance of quality reporting and encourage management to perform reporting of higher quality. It would also encourage investors to recognize and reward a higher quality of reporting through lower financing costs.