Paper Title
Interrelation of Long-Term Provisions and Companies' Features

This research aims to provide empirical evidence concerning the level of provisions regarding the company’s profitability as well as its characteristics, based on the analysis of financial statements of 61 Croatian listed companies in 2018. In addition to the International Financial Reporting Standards (IFRS) treatment of provisions, the research of long-term provisions in the context of the Croatian national legislative accounting framework is conducted. According to the corporate income tax law requirements, provisions may be deductible and non-deductible, so they are analyzed separately. Statistical techniques like descriptive statistics, ANOVA, and regression analysis are applied. Descriptive analysis shows that companies recognize tax-deductible provisions more frequently than non-deductible ones, but non-deductible have larger amounts. Both univariate and multivariate analyses indicate that the pattern for provisions’ recognition and measurement is related to the company’s main activity. Keywords - Company's Features, Croatia, Long-Term Provisions, Profitability.