The identity of a space cannot be discussed without reflecting on its economic contribution to creating a sustainable community. This approach is relevant for regions marked by specific conditions of economic development. It is undeniable that such economic units face developmental constraints, but they also possess valuable development potentials. Starting from identity as a characteristic of the system and its way of communicating with the environment, the economic identity of the Adriatic region is primarily approached from the perspective of the suitability of integrated economic policies to the regions specific development needs. With this aim, the effects of economic policies on the economic structure are observed, as well as their integration into national and international trade flows, and the effects of spatial placement of economic activities. Special attention is given to analyzing the region as a relevant economic entity on the international stage. These issues gain importance in the context of European integration processes, which are reflected in increasingly strong competitive pressures and demands for acceptance of appropriate legal regulations and institutional frameworks. Considering the above, a fundamental hypothesis can be formulated: although economic integration with the EU can provide a solid foundation for designing economic development and accommodating the regional specificities of the Adriatic region, disparities in development levels between Croatia and the EU under unified economic policies can lead to suboptimal effects. This situation requires Croatia to contemplate new solutions and appropriate development paradigms. The aim of the research is to assess the economic identity of Croatia and particularly the Adriatic region in an international context, from the perspective of EU enlargement, and to propose a sustainable development concept that, under the conditions of globalization and economic integration, enables maximum utilization of development potentials and synchronized economic development at the national and regional levels. The purpose of the research is to enable Croatia to achieve a satisfactory position in the global division of labor by maximizing the valorization of its endogenous development resources, especially in the Adriatic region. Bridging the development gap and the size gap represents the greatest challenge in this regard. The expected results, in terms of elaborating criteria for assessing the suitability of development concepts, will be evaluated through the development of various scenarios, contributing to the fund of applied economic knowledge.

Financial accounting in Croatia is based on IFRS (International Financial Reporting Standards) and Croatian tax regulations. However, accounting reporting for listed companies and other entities is not sufficiently defined within IFRS. Additionally, for the sake of harmonization, reporting should be aligned with EU requirements. It can be said that the current forms of reporting do not adequately meet all practical requirements placed upon them. Furthermore, changes in IFRS will significantly impact the presentation of business results. A particular issue is the discrepancies between accounting and tax laws and their impact on reporting. A specific segment of the accounting reporting problem is the verification of compliance with appropriate regulations and the prevention of manipulation. Therefore, the auditing segment and its impact on the quality of reports should also be investigated. The goal is to propose various models of accounting reporting and auditing that will provide higher-quality accounting information for target users. The basic hypothesis is that the proposed financial reporting models will result in more qualitative and suitable information for business decision-making. Scientific evidence is expected to demonstrate that the proposed model will provide higher-quality accounting reports for the targeted user groups. The results will be verified as follows: a) Through the method of comparison (including synthesis and analysis) b) Empirical research of secondary data c) Empirical research using surveys and interviews d) Statistical methods will be used to process the collected data to draw conclusions. With the development of the financial market in Croatia, integration into European structures, and the globalization of business, the issue of accounting reporting, specifically the content, quality, and transparency of reports, has become increasingly important. Improving the quality of financial reporting in Croatia can significantly impact the attraction of foreign capital.