This paper analyzes in detail the legal framework and the application of international accounting standards (IAS) in the context of the financial reporting of the company Jadrolinija. First, the legislative framework of the Republic of Croatia is examined, especially the Accounting Act, which lays the foundations for proper financial record keeping and the preparation of financial statements in accordance with internationally recognized standards. International Accounting Standards (IAS) are further considered, with a focus on the Conceptual Framework of the International Accounting Standards Board (IASB) and specific standards such as International Financial Reporting Standards (IFRS). Each of these standards is analyzed in detail in the context of their application in Jadrolinija. Jadrolinija is presented as a subject of financial reporting through the history and structure of the company, as well as through the main business activities that affect the way in which IAS are applied. Special attention is paid to the application of specific IAS and IFRS, to gain insight into the Company's accounting standards. Through all these examples, the challenges, opportunities and adjustments that Jadrolinija had to implement to ensure compliance with international accounting standards and properly present its financial condition and business results are explored. The analysis also includes an overview of audit methodologies and the practical application of the standards in a real business environment.